Control Systems and Incentives

Execution of strategy requires the alignment of structure, processes, incentives and controls, people, and culture. International business managers need to know that the plans they made are being carried out and that they are doing what they are supposed to How is a manager to know about the implementation? Control systems and incentives provide the "sticks" and the "carrots" typically used in buslinesses. Both control systems and incentives are designed by managers, and it is essential that managers know the options available to her or hirin.

Control systems and inceptives are essential elements of the organizational architecture of a firm. Control systems are used to of the subunits. Incentives are the devices used to reward appropriate behavior and should be very closely tied to the performance.

the most appropriate category for the descriptions below, determining if each one is a control system or an incentive. Personal Interactionis$-$Working face$-$to$-$face with employees gives the managers an opportunity to keep track of how they are doing and gives the employees a chance to be clear about what they need to do$.$

$2.$ Bureaucracy$-$Budgets and capital spending rules give managers in subunits the opportunities to execute strategies.

Cooperation between Managers $-$ Managers in subunits higher level of the firm than the managers' subumits.