Bureaucracy and Culture: Toward Two-Factor Theory of Organizational Control

Abstract

Purpose: In this article we focus on the issue of organizational control in its bureaucratic and cultural forms.

Methodology: This research uses exploratory case study analysis of Matsushita Konosuke’s management style of in the early years of the Panasonic Corporation.

Findings: First of all, we fi nd that despite the impressive body of knowledge accumulated over the years, some questions concerning the relationship between two modes of control and their changes over time still remain unanswered. As a result of case study analysis we put forward an original model illustrating the relationship between bureaucratic and cultural modes of control over stages of the organization life cycle.

Research implications and limitations: Implications of the study consist of prescriptions on how to successfully exert control by combining formal and informal measures. Main limitations of the study are related to its generalizability.

Originality: Originality of the study results both from putting forward a new theoretical models and using original historical case of Panasonic Corporation.