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Ideally, any organization is bound to have some management and administrative problems. However, having a clear blueprint for handling these agency problems is very vital. Having an effective organizational culture and a good strategic control system significantly lowers the probability of conflict between managers and employees or managers and the shareholders. Successful implementation of the planned control system ensures that all stakeholders in a firm are aligned towards the mission and vision of an organization. Progressive culture and a strategic control system are the primary tools and governance mechanisms that help streamline relationships between the different level managers and other stakeholders (Rothaermel 2015).
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