Introduction
The control function of management an organization is an activity to ensure that others are doing what should be done after strategy and organizational planning is made. The activities usually include a description of some type of measurement and feedback process. The basic process of controls involves three steps:- 1. establishing standards. 2. measuring performance against these standards. 3. correcting deviations from standards and plans.
This article addresses a broader perspective on control as a management function. The first part summarizes the general control problem by discussing the underlying reasons for implementing controls and by describing what can realistically be achieved. In the second part, the various types of controls available are identified. The last part discusses why the appropriate choice of controls is and should be different in different settings.
Why Are Controls Needed?
Sometimes, individuals unable or unwilling to act in the organization’s best interest, so a set of controls must be implemented to guard against undesirable behavior and to encourage desirable actions. If performance is not controlled on one or more critical performance dimensions, the outcome could be organizational failure.
What Is Good Control?
Perfect control, meaning complete assurance that actual accomplishment will proceed according to plan. A good control should mean that an informed person could be reasonably confident that no major unpleasant surprises will occur. A poor performance sometimes is given the label “out of control.” Some important characteristics of this desirable state of good control should be highlighted. First, control is future-oriented. Second, control is multidimensional. Third, the assessment of whether good performance assurance has been achieved is difficult and subjective. Fourth, better control is not always economically desirable.
How Can Good Control Be Achieved?
Good