Understand the three types of control systems. Know the strengths and weaknesses of common management fads. In addition to creating an appropriate organizational structure, effectively executing strategy depends on the skillful use of organizational control systems. Organizational control systems allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns.
Ultimate responsibility for control rests with all managers throughout an organization. Steps in the Control Process. A control standard is a target against which subsequent performance will be compared.
Such standards need to be measurable and consistent with the organization's goals and should identify performance indicators. Performance measurement is constant and ongoing in most organizations.
Performance measure must be valid for control to be effective. Comparing performance against standards: Performance may be higher than, lower than, or identical to the standard. After performance has been compared to standards, one of three actions is appropriate: Control of the processes an organization uses to transform resources into products or services is operations control.
Preliminary Control Preliminary control, also known as steering control or feedforward control, focuses on the resources that the organization brings in from the environment.
It attempts to monitor the quality or quantity of these resources before they enter the organization. Screening control relies on feedback processes. For example, when quality checks are used to provide feedback to workers manufacturing a product, the workers know what, if any, corrective actions to take.
Post action control, also known as feedback control, focuses on the outputs of the organization after the transformation process is complete. Although postaction control used alone may not be as effective as preliminary or screening control, it can provide management with information for future planning.
Post action control also may be used as a basis for rewarding employees. The control of financial resources as they flow into the organization, are held by the organization, or flow out of the organization is known as financial control.
A budget is a plan expressed in numerical terms: Budgets provide a method for measuring performance across different units within the organization.
Budgets have four primary purposes: Operating budget shows what quantities of products or services the organization intends to create and what financial resources will be used to create them.
Non monetary budget expresses planned operations in non financial terms such as units of output and machine hours. Many organizations now allow all managers to participate in the budget process.
Strengths and weaknesses of budgeting: Budgets facilitate effective control and coordination and communication between departments. But budgets may be applied too rigidly; the process of developing them can be time consuming; and they may limit innovation and change.
Other Tools of Financial Control. Budgets are the most common means of financial control, but there are other useful tools: A profile of some aspect of an organization's financial circumstances is a financial statement.
The two most commonly used financial statements are the balance sheet and the income statement. The balance sheet shows a snapshot profile of the organization's financial position. The income statement summarizes financial performance over a period of time. Financial ratios compare different elements of a balance sheet or income statement to one another.
Ratio analysis is the calculation of one or more financial ratios to assess some aspect of the financial health of an organization.
Five commonly used financial ratios are liquidity, debt, return, coverage, and operating. Audits are independent appraisals of an organization's accounting, financial, and administrative procedures. An external audit is a financial appraisal conducted by experts who are not employees of the organization.
An internal audit is an appraisal conducted by employees of the organization. The objective of these audits is to verify the accuracy of financial and account procedures. Internal audits also assess these procedures for efficiency and appropriateness.
Structural control focuses on how well an organization's structural elements serve their intended purpose. Organizations characterized by these opposite approaches differ structurally in terms of foals, degree of formality, performance focus, organization design, reward system, and level of employee participation.
Bureaucratic control is characterized by formal and mechanistic structural arrangements.Effective Organizational Control Systems.
The management of any organization must develop a control system tailored to its organization's goals and resources. Effective control systems share several common characteristics. These characteristics are as follows: A focus on critical points. Improving clan control was the basis for the fascination with organizational culture Values and norms embraced by an organization that determine how people interact with other organizational members as well as external stakeholders.
that was all the rage in the s. Jun 26, · Organizational control includes developing rules, guidelines, procedures, limits or other protocols for directing the work and processes of employees and departments.
G - Control in Organizations. Control is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits. The Purpose of Control. Control provides an organization with ways to: Adapting to environmental change. In organizational control, the approach used in the program of review and evaluation depends on the reason for the evaluation — that is, is it because the system is not effective (accomplishing its objectives)?
Is the system failing to achieve an expected standard of efficiency?
Is the evaluation being conducted because of a breakdown or. The Centers for Disease Control and Prevention (CDC) cannot attest to the accuracy of a non-federal website.
Linking to a non-federal website does not constitute an endorsement by CDC or any of its employees of the sponsors or the information and products presented on the website.