It is the process of regulating organizational activities so that actual performance conforms to expected organizational standards and goals . .. more
What is Controlling? CONTROLLING– Jurassic http://www.whatiscontrolling.co.uk/ File Edit View History Bookmark Window Help Search Insert your bookmarks here News Web
Significance of Control Process - Controlling function is closely allied to the other functions of management :
What is Control System? A set of mechanisms that are designed to increase the probability of making organizational standards and goals.
Purpose of Control System
Control Systems are developed to regulate any area a manager considers important like quantity produced, resources expanded, profit margins, quality of products or services, client satisfaction, or specific activities that are performed in producing a product or service.
Controls help managers avoid such problems especially with five particular challenges a firm may face namely coping with uncertainty, detecting irregularities, identifying opportunities, handling complex situation and decentralizing authority.
LEVELS OF CONTROL STRATEGIC CONTROL A control type that involves monitoring environmental factors that could affect the viability of strategic plans, assessing the effects of organizational strategic actions and ensuring that strategic plans are implemented as intended .
TACTICAL CONTROL A control type that focuses on assessing the implementation of tactical plans at department levels, monitoring associated periodic results, and taking corrective action as necessary.
A control type that involves overseeing the implementation of operating plans, monitoring day to day results and taking corrective action when required.
Steps in Control Process
• Determine areas to control
• Establish Standards
• Measure Performance
• Compare Performance
• If Standards are met, recognize performance
• If Standards are not met, take corrective action
• Adjust Standards and measures as necessary
Managerial Approaches to Implementing Controls • Market Control • Bureaucratic Control • Clan Control
Characteristics of an Effective Control System • Future Oriented • Multidimensional • Cost Effective • Accurate • Realistic • Timely • Monitorable • Acceptable to Organization Members • Flexible