Importance of management control in the organization

If, however, management determines that personnel controls should be supplemented, the first step should be to examine the feasibility of the various control options. Perhaps the most difficult problem in human systems is the unresponsiveness of individuals to indicated correction.

How Organizational Control Is Important to Organizational Performance

This needs an efficient system of appraisal and timely flow of information. Because feedback does not appear prominently in the preceding discussion, it is useful for clarification purposes to consider where feedback fits in, Control is necessarily future-oriented, as past performance cannot be changed, but analysis of results and feedback of variances can often provide a particularly strong addition to a control system.

The signals at, a busy road crossing very well illustrates the significance of control. It enables managers to command the organization instead of being its victims. In this way, controlling is helpful in achieving the goals of the organisation.

The immediate impact was indeed an increase in sales volume, but the increase was accomplished in ways that were inconsistent with long-term organizational goals. Structural control is exercised by top and middle management. In evaluating man-machine or human-oriented systems, psychological and sociological factors obviously do not easily translate into quantifiable terms.

Importance of Management Control in an Organization

If managers discover that certain specific actions produce consistently superior results, then it might be beneficial to inform employees of the specific actions that are expected of them, for example, by publishing these desired actions in a procedures manual.

This helps in cost reduction. For example, the supply of orders by the sales department depends on the production of goods by the production department. To illustrate the difference, we "evaluate" the performance of a system to see how effective and efficient the design proved to be or to discover why it failed.

The most difficult task of management concerns monitoring the behavior of individuals, comparing performance to some standard, and providing rewards or punishment as indicated.

How to control access to computer databases is very important. An informed expert might judge that the control system in place is adequate because no major bad surprises are likely, but this judgment is subject to error because adequacy must be measured against a future that can be very difficult to assess.

In other words, there is a lack of goal congruence. Decentralization of authority is necessary in big enterprises. Implementor[ edit ] The activator unit responds to the information received from the comparator and initiates corrective action.

Table 1 shows many common controls classified according to their control object; these controls are described in the following sections. As long as a plan is performed within allowable limits, corrective action is not necessary; however, this seldom occurs in practice.

Such control is used when feed forward or concurrent is not possible or very costly; or when exact processes involved in performing a work is difficult to specify in advance.

Controlling: It’s Definition, Importance and Limitations | Management Functions

After the evaluator determines the cause or causes of deviation, he or she can take the fourth step— corrective action. The four basic elements in a control system: Use of results-accountability control systems requires: It focuses attention on the key factor essential to the success or effectiveness of the organization.

As with action-accountability systems, results-accountability systems are future-oriented; they attempt to motivate people to behave appropriately. Corrective properties may sometimes be built into the controller for example, to modify the time the lights are turned on as the days grow shorter or longerbut this would not close the loop.

Note, however, that the timing mechanism is an independent unit and is not measuring the objective function of the lighting system. We select a specific characteristic because a correlation exists between it and how the system is performing.

If a manager makes all the decisions in certain areas, those areas cease to be control problems in a managerial sense because no other persons are involved. For control over specific actions, management must have some knowledge of which actions are desirable. Individuals who become accustomed to following a set routine are not as apt to sense a changing environment, nor are they likely to search for better ways of doing the tasks at hand in a stable environment.

Control helps in coordination of activities through unity of action.Organizational Control Objectives Simply put, organizational control is the process of assigning, evaluating, and regulating resources on an ongoing basis to accomplish an organization's goals.

Organizational Control Objectives

To successfully control an organization, managers need to not only know what the performance standards are, but also figure out how to share that. Read this article to learn about Managerial Control Process: it’s characteristics, importance, types, requirements of effective control system and techniques!

The Importance of Planning and Control in an Organisation

An effective organization is one where managers understand how to manage and control. The objective of control as a concept and process is. The control function of management can be a critical determinant of organizational success.

Most authors discuss control only through feedback and adjustment processes. This article takes a broader perspective on control and discusses the following questions: What is good control?

The Importance of Control Function in a Business Organization

“Control is the process of bringing about conformity of performance with planned action.” Dale Henning. Controlling function is performed in all types of organizations whether commercial or non commercial and at all levels i.e.

top, middle and supervisory levels of management. The Importance of Management Control in Monitoring the Pharmaceutical Industry Performance for Competitive Advantage resultant of organizational flexibility and control capacity.

In most business organizations, accounting personnel is the largest staff unit. The Importance of Control in management are as follows: (1) Reduces Risk: Control eliminates the risk of non-conformity of actual performance with the main goals of the organisation.

Importance of management control in the organization
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