This element of the management process can actually occur during the planning phase. Once a process has been planned, it is necessary to set standards with which to compare the performance. It is also helpful to set interim standards to ensure that the final target will be reached. For the control process to be worthwhile, the control standards should be relevant, realistic, attainable (possible) and worthwhile.
Collecting information and reporting on actual performance are ongoing tasks. It helps if the activities are quantifiable and if the reports are reliable.
Once performance has been measured against the standard, the difference must be accounted for or evaluated. If deviations are large enough to be concerned, they should be investigated.
The final step in the control process is to determine what action is necessary to correct the deviation. This may include improving the actual performance, revising the strategy or lowering standards to make them more realistic.
Characteristics of effective control
Summary: what is control?
• Control is a continuous process
• Control is a management process
• Control is embedded in each level of organizational
• Control is forward looking
• Control is closely linked with planning
• Control is a tool for achieving organizational activities
• Control is an end process
• Control compares planned performance with actual
True or False?
a. Control helps cope with changes
b. Control systems increase costs in an
c. Controls helps cope with increasing size and
d. Control limits errors