Many argue that organizational culture and organizational structure are functional alternatives, that is, they both function to achieve control. When culture is strong, strong structures are not necessary. We discussed some of the situations which lead to the use of formalization, or process control and, by contrast, situations that lend themselves to output control. Stable environment, where one best way exists and is known. Situations where we cannot afford an unfavorable outcome.
Decision makers lack expertise or information necessary.
Output Control A clear, measurable objective exists There are multiple effective means of achieving the objective. The proper process depends on factors that must be determined at time of the decision. Decision makers have expertise and access to information necessary. The decision makers have access to knowledge of results which provide feedback necessary to modify future processes and decisions. An organization's structure is, in part, a function of the control mechanisms it utilizes.