Final answer:
The concept being described is known as management control systems. These are formal and informal mechanisms that ensure managerial behavior aligns with a company's strategic goals. Examples include reporting systems and interpersonal relationships within a firm.
Step-by-step explanation:
The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as management control systems. Management control systems include a variety of formal and informal mechanisms that help regulate organizational behavior, aligning it with the company's strategic objectives. Formal mechanisms might include structured reporting systems and performance reviews, while informal mechanisms can involve personal relationships and cultural norms within an organization. These systems serve to monitor performances, facilitate effective decision-making, and ensure that managers are accountable for their actions. For instance, in small group settings, the strength of interpersonal relationships can serve as an effective informal mechanism, allowing for quick detection and correction of any deviation from collective goals. On the other hand, larger formal organizations often rely on bureaucratic oversight and structured systems, such as compensation policies and internal reporting procedures.