Styrning av säljbolag - En studie av hur säljbolag i en global industrikoncern styrs på distans
In today's globalized world it is essential to achieve goal congruence within a multinational corporation despite the distances between the headquarters and subsidiaries. A case study has been performed to examine how control of sales units within a Swedish multinational corporation is achieved. Otley's framework has been used in the study to provide an overall picture of the control system where the analysis is based on five areas: key objectives and goal evaluation, strategies and plans, target setting process, incentives and motivation as well as information flows. To complement this framework, theories of convergence and divergence by Busco et al. have been used as well as theories of hierarchical control and self-control by Holmström. It has been observed that a complete standardization may not be applicable within the organization because of the sales units' manager's need for adjusting their reporting to the headquarters. Control of the 40 sales units is today achieved foremost through management by objectives combined with a widespread standardization, where the sales units are allowed to make certain local market adjustments. By using this system, market adjustments are possible while a certain degree of control still remains within the headquarters.