Allocative Control Definition

Allocative control is the capacity to allocate resources to certain operations inside an organization. Sociologists believe that allocative control is businesses’ most formidable kind of control. Those with allocative control may affect the company’s strategic direction by deciding how priorities are distributed. Owners of businesses do not need to manage the day-to-day operations of their companies to maintain control over what happens. Allocative control ensures that people with such control have their interests satisfied.