Clan Control: The Power of Shared Values in Internal Control

Clan control is a type of internal control that relies on the shared values, norms, and beliefs of employees to regulate behavior within an organization. It is often referred to as the 'informal' control system because it is not a formal set of policies, procedures, or rules. Instead, it is based on the culture of the organization and the relationships that exist between employees. The idea behind clan control is that employees will regulate their behavior based on their desire to fit in with the culture of the organization and the expectations of their peers. This type of control can be particularly effective in organizations where employees share a strong sense of identity and purpose. However, it can also be challenging to maintain, as the culture of the organization can change over time as new employees are added or as the external environment shifts. Organizations that rely heavily on clan control may need to invest in ongoing training and development to ensure that their employees remain aligned with the values and norms of the organization.