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Significance of control in an organisation
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There are many different types of control that can be established in an organization depending on its goals and objectives. There are many different approaches to the management controlling function. Some of these control systems are bureaucratic control, market control and clan control. All of these control systems focuses on a different part of the business depend ending the necessities of the organization in that moment. All of the control systems have their advantages and disadvantages.
The controlling function is defined as any process that directs the activities of
individuals toward the achievement of organizational goals*. The controlling function is the one that set the game rules. This function set the organizational standards rules and norms. The controlling function works hand to hand with the planning function because the controls are the ones that ensure that the plans are fulfilled. The established controls must go in coherence with the plans because the success of each will depend on the other. The control function not only control the personnel it also control things as , budget, organizational resources, machinery, materials or components, physical structure and more. The control process must set performance standards, measure performance, compare performance with the standards; and take corrective action if needed in order to be effective
One of the most used control systems is the bureaucratic control system. The bureaucratic control system Bureaucratic control is defined as the use of rules, regulations, and formal authority to guide performance*. The bureaucratic control system is a very rigid and formal one. This system establishes a well defined set of rules and procedures in order to achieve the organizational goals and objectives. This system is based on hierarchy were roles and authority has been well defined. This control system involves personnel close monitoring, supervision and direction of subordinates by superiors. The bureaucratic control different uses tools as budget as a control device, management audits, external audits, and internal audits.
The market control system is based on the use of pricing mechanisms and economic information to regulate activities within organizations*. This control system is based in external factors that affects an organization rather than the internal factors.
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...n reaction of the implementation of this system. This tactical behavior is defined as the beating the system behavior. This can be harmful to an organization because employees can start to report false information. This will have bad consequences to the organization because it will provide wrong information for the forecasting and planning of future organizational goals and objectives.
Controlling can also produce a resistance to control reaction because Control systems usually uncover mistakes, threaten people’s job security and status, and decrease people’s autonomy it can also change the organizational structures and the authority chain of command. It can also disrupt the social relations of a group.
In order to develop a system functional system for an organization the best decision is to make a hybrid one. Not only taking the organizational objectives in consideration but also taking in consideration the employees and the external and internal factors that affects all of the organization.
References
Bateman-Snell: Management: The NewCompetitive Landscape,Sixth Edition chapter 16
James Higgins, The Management Challenge, Second Edition, Macmillan, 1994
PROBLEM : What effective management control system or systems should the Company adopt to attain maximum profitability not only of its divisions’ respective operations but that of the Company as a whole?
Controlling in management is a function of management that is concerned with making sure that all other functions of the management are put in place and operated effectively. Controlling ensures that it has taken into consideration the monitoring of the output of the employees as well as the establishing standards of performance that will guarantee that the performance of the will always meets the set standards (Spellman,
In controlling, organization has lots of risk factors .Manager take some employee who is able to control and handling risk factors.
“Controlling: monitors progress and implements necessary changes where needed. Monitoring is an essential aspect of control” (Bateman & Snell, 2004, p. 18).
Effective control process in an organization would help in gathering information about the process and the employees, this can further help the management whilst taking important decisions in terms of establishing standards to meet standards, measuring the actual performance, as well as comparing performance with the standards. It can further help the companies in achieving their optimum goals so that they can take corrective actions as and when required. The process controls in place and guide and provide the company with the required regulations of the company’s activities. Which can lead to the performance of the company, hence it will also help the organization in terms of monitoring and responding.
“The control process gives managers the tools needed to effectively monitor progress towards an objective” (Satterlee 2013. p.74). There are basically two types of controls utilized by management: internal and external controls. “Internal controls generally can be classified into two categories: preventive or detective” (Satterlee, 2013. p75). As the names depict, preventive is used to ensure things do not happen unless desired and detective is described as determining what happened after it already occurred. Preventive is generally the best choice. Merchant states, “The need for controls over any particular behavior or operation within an organization depends very simply on the impact of that area on overall organizational performance” (Merchant, 1982, p. 48). External control is on the outside of the organization which may deal with polices, auditing and procedures to name a few. The organization has little-to-no control over many of external controls; however, managers must remain cognizant of their affect on the organization and plan for any
Controlling is the fourth management function and its purpose is straightforward- to make sure that actual performance meets or surpasses objectives. It is well used for decision making and problem solving. Effective control depends on other management functions and it gives feedback to them. These functions are planning, organizing and leading. Planning sets directions and allocates resources. Organizing puts people and material resources together in working combinations. Leading motivates people to use these resources in the best way. Basically, the function of controlling is to make sure that the right things happen in a right time and in the right way.Control helps that overall directions of individuals and groups are consistent with short-range and long-range organizational plans. Also, it helps to ensure that objectives and accomplishments are coherent with one another throughout an organization. Moreover, it helps maintaining fulfillment with essential organizational rules and policies. Good example where we can see role of control is in helping to protect individual rights to become equivalent with employment opportunities at work. The control process practiced by managers includes four steps: 1) establish objectives and standards 2) measure actual performance 3) compare results with objectives and standards and 4) take actions if necessary1. The controlling process starts with establishing performance objectives and standards which means that the controlling process begins with planning. Performance objectives should be defined and associated with specific measurement standards for determining how well they are accomplished. Standards are the targets of performance. The next step of the control process would be measur...
The National Academy of Sciences notes that the United States has many of the world’s most successful clinical research facilities and cutting edge medical technology, but there has not been as much of an effort to establish a system to measure the quality of care and the productivity of the healthcare system (National Academy of Engineering and Institute of Medicine Committee on Engineering and the Health Care System, 2005). Each of these concepts have certain strengths and weaknesses. The application of these concepts can assure that patients are safe, prevent organizational incidents, and can also help in the investigation of incidents. This paper discusses the strengths and weaknesses of five of these concepts, how these are related to patient safety and can help with the investigation of incidents, illustrates the strengths and weaknesses in a table, and includes a basic incident response tool that integrates the strengths of these concepts.
Internal control is, to some degree, the responsibility of everyone in an organization and therefore should be an explicit or implicit part of everyone's job description. Virtually all employees produce information used in the internal control system or take other actions needed to effect control. Also, all personnel should be responsible for communicating upward problems in operations, noncompliance with the code of conduct, or other policy violations or illegal actions (http://www.coso.org/publications/executive_summary_integrated_framework.htm.).
The Feedback after applied and executed is the most important of the process of control, Outcome controls are judge by the result of the organization’s activity. The behavior control involves manufacturing to know how the members are doing and behave in a daily base. The financial control in the process execute by monitoring costs and expenditure. The financial control can monitor intangiveis like customer satisfaction and employee morale.
Similarly in Weber’s bureaucratic approach, organizations are divided into different echelons with each varying in its degrees of influence. Each unit being commanded by the one above it, a system that promotes stability and has a predictable line of communication. Both approaches of management rely heavily on regulated control. Whether governing task scientifically of people authoritatively. A solid form of control is mus...
Leading by example to lead the staff in the right direction and to ensure that the staff are working correctly to make the best possible profit. C-Control: Controlling all possible aspects of the business to ensure everything is running according to the plan. Middle Management Middle management is responsible for some of the 8 Business Functions. They make medium-term decisions.
There are four different functions of management. In this paper, I will define these functions; planning, organizing, leading and controlling. I will also explain how each of these functions relates to my own organization. Bateman and Snell (2004) define management as the process of working with people and resources to accomplish organizational goals. By utilizing the four different functions of management companies can work with their employees and other resources to reach the organizations goals.
There are three categories of control: policies, programs and technical control. Controls can be classified as :
Control and system design to ensure that the activities and processes of the organization are conducted in accordance with the corporate rules and objectives