In [[Management Control]] ''//Cultural controls//'' or mutual-monitoring tap into social pressure  and group norms and values. Cultural controls are effective because members of a group have  emotional ties  to one another. Cultures are built on shared traditions;
* norms;
* beliefs;
* ideologies;
* attitudes;
* ways of behaving, etc.

Five ways to shape culture:
* ''Codes of conduct''
** Codes of ethics; corporate credos, mission statements, etc.;
** Formal written documents with broad statements of corporatevalues, commitments to stakeholders, and the ways in whichtop management would like the firm to function.
** Fundamental guiding principles of the company.
* ''Group-based rewards''
** e.g., bonus, profit-sharing, employee ownership of company stock;
** Cultural controls rather than results controls because the link between individual performance and rewards is weak.
* ''Intra-organizational transfers''
** Improve the socialization of individuals in an organization andinhibit the formation of incompatible goals and perspectives;
** Improve identification with the organization as a whole asopposed to subunit identification.
* ''Physical and social arrangements''
** e.g., office plans, interior decor, dress codes and vocabulary, etc.
* ''Tone at the top''
** Top management statements must be consistent with the culturethey are trying to create, and importantly, their behaviors shouldbe consistent with their statements.

bag
mbi_public
created
Fri, 07 Oct 2011 07:53:54 GMT
creator
dirkjan
modified
Fri, 07 Oct 2011 07:53:54 GMT
modifier
dirkjan
tags
M18
Term
creator
dirkjan