Apply Relevant Theories to Analyse the Adopted Approach to Control in Microsoft Organisation. What Implications of Your Research Can You Think of?

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Task 1 Apply relevant theories to analyse the adopted approach to control in Microsoft organisation. What implications of your research can you think of? Various theories of organisational control have been put forward in order to harness the performance of employees and to achieve organisational goals. Managers have been adapting their control over organisational resources and employees in varying ways, depending upon the stakeholder interests. These theories have supported an autocratic control of managers over organisational resources, and conversely, have also encouraged a sharing of control responsibilities between the management and employees. An analysis of these theories, their applications and limitations, along with a review of how they apply to the case study organisation, Microsoft, is given below. Agency Theory In an agency relationship, one party acts as an agent of another in pursuing the interest of the first party. The primary interest of the first party is achievement of its objectives, and it is the responsibility of the second party to employ whatever tools are necessary for the attainment of these objectives. The first party employs these agents as they are more informed about the working dynamics of the industry that they operate in. The Agency theory assumes that there would be self-interest at the individual levels and goal conflicts at the organisational levels between involved parties (Eisenhardt, 1989). Agency theory is particularly useful in several areas of organisational working, such as resolution of goal conflicts, outcome uncertainty and un-programmed and group tasks (Gurbaxani and Kemerer, n.d.). It allows managers a top-down control of the entire scheme of work, and they are able to guide it to completion. However, Eisenhardt (1989) also proposes that in the case of agency theory, while it does have its merits for effective

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