tags: #publish
links: [[Organisation Design]], [[Management]]
created: 2021-10-09 Sat
---
# Three modes of organisational control
This originates from *High Output Management* by Andy Grove.
> Three modes of organisational control and how they interact with each other. When I say ‘modes of control’ I am using terminology from the late Intel CEO Andy Grove; these are a) economic incentives, b) ‘contractual’ obligations, and c) culture. These three tools make up your org design toolbox.
https://commoncog.com/blog/org-design-skill/
- **Economic**: "free market" based on self-interest. Compensation, promotion, staying employed.
- **Contractual**: rules, job definition, SLAs between departments
- **Culture**: "this is how we do things here", values, mission, philosophy
> Accordingly, given a certain set of conditions, there is always a most appropriate mode of control, which we as managers should find and use
> ...
> CUA factor (complexity, uncertainty, ambiguity of environment)
![[Three modes of organisational control.jpg.jpeg]]