Strategic Control And Organizational Structure

Informational control (the ability to respond effectively to change), and, Behavioral control (the appropriate balance and alignment among an organization's culture, reward, and boundaries). The third section, focuses on strategic control from a broader perspective - Corporate governance. Here, we focus on a firm's need to assure that the elected representatives (board of directors) of the owners of the firm (shareholders) ensure that the firm's executives (the management team - headed by the Chief Executive Officer) strive to fulfill their fiduciary duty of maximizing long-term shareholder value.