What is the term for the use of rules and regulations to guide organizational performance?

The term that refers to the use of rules and regulations to guide organizational performance is known as bureaucratic control. Bureaucratic control is characterized by the establishment of formal policies, procedures, and hierarchy within an organization to ensure that employees and processes operate within defined limits. This approach relies on a structured framework where compliance with specific protocols is essential for maintaining order and achieving objectives.

In organizations employing bureaucratic control, there is often a clear chain of command, standardized rules, and a systematic approach to decision-making. This type of control is useful in promoting consistency and predictability in performance, as all members are expected to adhere to the established norms.

The other concepts, while important, focus on different aspects of organizational control. Strategic control deals with assessing and guiding the long-term direction of the organization, operational control focuses on the management of day-to-day activities, and financial control centers on the monitoring of financial resources and budgets. Each of these controls serves distinct purposes, but bureaucratic control is specifically tied to the use of formal rules and regulations.