RSM422H1 Quiz: Flamholtz Model Explained - Pros and Cons

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16 Nov 2016
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Flamholtz application of psychology and sociology to explaining organizational control. Flamholtz model, as a preliminary framework for organizational control systems written in the late 1990s, has several strengths. The first of which is that it"s purpose and functionality is clearly stated to correspond with goal and strategy orientation. Both of these fundamental elements are extremely important for a company to always base all of their activities around and should remain at the forefront when organizational decisions are being made. He also states that there are two more functions to controls and those are to help with integration of the company and employees" efforts, while simultaneously supporting decentralization so that autonomy exists for day-to-day decisions. Another strength is that the framework is a simple and clear illustration to how control systems work. Flamholtz states there are three concepts known to impact an organization: the organization"s environment (such as the industry or economy), the organization"s culture and the organization"s structure.