Controling is one of the four chief maps in direction. It is of import to directors in order to guarantee all planning, organizing and taking run every bit swimmingly as desired. If directors are able to guarantee that each program made and every undertaking given to the employees are carried out absolutely, and the consequences expected is what had been planned, control is non required.
Unfortunately, directors are non able to guarantee these conditions will run swimmingly without the happening of any jobs since most planning is done by worlds and worlds are known to be diverse in footings of abilities, motive and others. In a quickly altering concern environment, non merely the expected consequences must be controlled, be aftering must besides be monitored and controlled.
Management control is a systematic attempt to repair or set up the criterion of public presentation through planning aims, planing information feedback systems, comparing true public presentation with the fixed criterion, finding whether there are any disadvantages or failings and taking suited actions to guarantee all resources within the administration can be used in the most effectual and efficient manner in accomplishing the aim of the administration.
Control is the procedure of guaranting that organizational activities are running harmonizing to program. This procedure can be carried out by comparing the true public presentation with the criterion that has been established and taking disciplinary actions in order to rectify any deformation that does non follow with the criterion.
The chief intent of control in direction is to fix directors to confront hereafter or bing jobs before they turn critical. In general, an administration with a good control mechanism will hold the advantage of viing strength compared to administrations without a good control system. The following are several illustrations of the importance of control for administrations:
The smooth running of a peculiar procedure can be monitored and jobs can be avoided by holding control. Control is able to excite the administration to supervise and increase the quality of merchandises and services offered. Through the activities related to the control procedure, members of the administration will ever be driven to move harmonizing to the programs that have been established.
Change can non be avoided. Change in environmental factors such as markets, rivals, engineering and statute law makes the control procedure of import for directors in reacting towards chances and menaces. Control helps the administration to accommodate its merchandises to the demands and wants of consumers in the market.
A control procedure has three basic demands: repair of criterions to be used in mensurating the degree of growing ; monitoring determinations and comparing it to the criterions, that is, the comparing of the organisations true public presentation with the planned public presentation ; and eventually, taking disciplinary actions in rectifying any disadvantages and failings that occurred in accomplishing the public presentation that has already been set. Figure 9.1 illustrates the stairss involved in the procedure of control.
Standard is the base for comparing to mensurate the degree of public presentation of a company in order to happen out whether the company is compliant. Standard is the point of mention in doing comparings to another value. Standard can be defined as what is required out of a peculiar occupation or an single. In direction control, criterions are normally derived from the aims. Standards should be easy to be measured and interpreted. A specific aim that can be measured makes it more suited to be used as a criterion. If this criterion is non clearly and specifically stated, it may be interpreted in a different manner and will so raise assorted troubles that can impact the ends of the administration.
In general, there are three types of criterions: physical criterion such as measure of merchandises and services, figure of clients and quality of merchandises and services ; fiscal criterion which is stated in the signifier of money, and this includes labour cost, gross revenues cost, stuff cost, gross revenues gross, net income border and others ; and in conclusion, clip criterion which includes the public presentation rate of a peculiar undertaking or the clip period required to finish a peculiar undertaking.
Performance measuring is a type of control. Actual consequences need to be monitored to guarantee that end product produced is harmonizing to the specific criterion. The chief intent of public presentation monitoring is to garner informations and detect divergence and job countries. Measurement has no significance if it is non compared to the criterion. The following measure is executing the comparing of criterions. Comparison of criterion is a procedure where comparing is made between the true public presentations with the criterion set. This measure is of import because it allows any divergence or deformation to be detected and disciplinary actions can be taken in order to accomplish the ends that have been set.
It is frequently found that directors set up criterions and proctor determinations but do non take suited actions. The first and 2nd stairss in control will be nonmeaningful if disciplinary actions are non taken. Before taking any stairss in correcting, elaborate analysis must be carried out in order to happen out the factors that caused the peculiar divergence.
This disciplinary action may affect alteration in one or more operation activities of the administration such as alteration, mending of machines, readying of certain classs and others, or it might besides affect a alteration in the fixed criterion. Corrective action is a procedure of placing the deformed public presentation, analyzing the deformation and development and implementing programmes in order to rectify it.
The running of a control procedure is a uninterrupted act. This procedure can non be done merely one time in order to derive the accomplishment expected. This is considered as a dynamic procedure. This dynamic procedure begins with looking at the true public presentation and mensurating the achievement degree of that peculiar public presentation.
Directors will so compare the public presentation achieved with the public presentation that has been fixed. If there happens to be any difference, it must be analysed in order to place the cause of the differences and this is followed by the correcting act. This procedure must be done repeatedly and must be given full attending by the director in order to achive the public presentation ends set.
Harmonizing to Williams ( 2000 ) , a control procedure consists of three basic methods which are identified as future control, coincident control and feedback control.
This type of control is besides known as bar control. This involves the usage of information, including information from the latest consequences, is to calculate what will go on in the hereafter so that preventative steps can be taken. It is implemented to forestall the happening of divergence between what had truly happened with what is expected to go on. Prevention is carried out through elaborate analysis on the input before it is accepted into the procedure of administration transmutation. Input is ensured to follow with the quality criterions established so that the consequences obtained are as expected.
One illustration of the usage of this control is when a director ensures that the sample of natural stuff that is traveling to be used complies with the criterion established by the administration or based on certain specifications to avoid harm towards the merchandise in the hereafter.
Concurrent control is carried out during the procedure of transmutation. When this control is carried out, Restoration actions, disciplinary actions or alterations are done after deformation is detected. For a production-oriented administration, this commanding action is taken while input is being processed while for service-oriented administrations, it is taken while service is being provided.
Through this method of control, administrations will supervise their operations and at the same time take the necessary disciplinary actions before the transmutation procedure is completed. This will assist to cut down errors in the end products being produced. Examples of this method of control are mid-term scrutinies, control of histories, control of stock lists and others.
Feedback control involves garnering information related to the failings of commanding steps after an incident takes topographic point. This type of control is implemented after the transmutation procedure has been completed with the intent of happening out whether the whole activity ran decently with consequences as expected.
This control is besides able to find whether the program that is traveling to be carried out has the continuity with the old programme. It is besides able to measure the effectivity and efficiency of the involved parties in executing the activities of the administration. An illustration of this method of control is the usage of low-quality natural stuffs that resulted in the production of low-quality merchandises. The act of altering the natural stuffs used is one of the illustrations of feedback control.
Harmonizing to Williams ( 2000 ) , there are five signifiers of control that can be used by directors in implementing the procedure of control” bureaucratic, nonsubjective, normative, concertive and self. Figure 9.3 illustrates these five signifiers of control.
This method uses hierarchy authorization to act upon employees. Wagess are given to employees who obey and penalty is meted out to employees who do non obey the policies, ordinances and process of the administration.
This method uses the measuring of observation towards the behavior of employees or end product produced to measure work public presentation. Directors are more focussed on the observation or measuring towards the behavior of employees or outputs instead than the policies or regulations. Objective control consists of two signifiers of control ; behaviour control and end product control.
Behaviour control is the regulation of behavior and actions that controls the behavior of employees in their undertakings.
Output control is the signifier of control that controls the end product of employees by allowing wagess and inducements. Important characteristics in the execution of end product control are dependability, equity and truth, converting employees and directors to accomplish the expected consequences while wagess and inducements depend on the public presentation criterion that has been established.
Normative control is a method that arranges the behavior of employees and consequences through norms and beliefs shared together among all the members within the administration. There are two chief substances in this type of control which are, sensitivity towards choice of employees based on their attitude and norms, and obtaining inspiration based on experience and observation of employees.
This is a method that uses the norms and behavior discussed, formed and agreed by the work group. This signifier of control plays a function in an independent work group. An independent work group is a work group that operates without the presence of a director and is to the full responsible for the control of procedure, undertaking group, end product and behavior. Autonomous work groups bit by bit grow through two phases of concertive control. First, members work and learn from each other, oversing the work of each member and develop norms and beliefs that guide and command them. Second, the visual aspect and credence of aims as usher and control of behavior.
It is a system where directors and employees control their ain behavior by set uping their ain ends ; supervise their ain advancement and their ain accomplishments of ends, and reward themselves when ends have been achieved.
Determining the affairs to be controlled is every bit of import as doing determinations on whether to command or in what method should command be done. There are several positions that need to be controlled by a director in order for the administration to be able to accomplish the ends expected.
One of the of import countries that need to be controlled is finance. There are times when the fiscal public presentation does non make the expected criterion. If this status remains undetected and relevant actions are non taken, the being of the company might be in hazard. Financial position is by and large related to activities such as gross revenues, purchases and others.
Fiscal statements are of import beginnings of fiscal information for an administration. A balance sheet shows how strong the fiscal place, assets, liabilities and the place of the equity holder for a certain fiscal period. A profit-loss statement or income statement shows the sum-up of the operational activities and the relationship between outgo and gross for a peculiar fiscal twelvemonth.
There is a new attack in the fiscal position known as economic value added. Economic value added is the entire net income of a company which exceeds the capital cost in a peculiar twelvemonth. In this position, a director must enforce control so that the entire net income of a company ever exceeds the capital cost for the company to continuously derive economic value added.
The control towards human resources is critical for administrations. If an administration is unable to command its human resources decently such as losing adept work force hence it will endanger the public presentation and accomplishment of the company. Administrations need to hold planning that is able to actuate the employees. For illustration, administrations need to be concerned sing the jobs faced by the employees by making harmonious treatments between the direction and the employees brotherhood.
Internal operations of administrations are normally measured through quality. Operationss control is really of import for every administration particularly for fabrication houses. This is because efficiency and effectivity of operations control will find the degree of production and organizational public presentation as fixed by the criterion. The quality value of merchandises and services produced based on the criterion will be able to beef up the perceptual experience of the clients towards the quality of goods that they had purchased. For illustration, the control of merchandise quality is able to cut down waste and merchandise defects and this will further salvage cost. Inventory control is besides effectual in cut downing the costs of investings related to stock list
In order to mensurate the public presentation of clients, an administration needs to enforce control on clients who leave the administration and non based on the study of client satisfaction. In this position, the director will do rating by mensurating the per centum rate of clients who left the administration. By commanding clients from go forthing the administration, a company will be able to increase net incomes. For illustration, the cost in obtaining a new client is five times more compared to the cost of retaining an bing client.
The chief intent of direction control is to fix directors to confront bing or future jobs before it becomes critical.
Management control has three basic demands: establishing criterions ; supervising determination and comparing it to the criterion ; and doing corrections on any deformation that occurred between the true determination and the criterion.
Control is a dynamic procedure because it is a uninterrupted procedure.
Control procedure consists of three basic methods: hereafter control which is besides known as bar control ; concurrent or present control ; and feedback control.
There are five signifiers of control that can be used by directors in implementing the control procedure: bureaucratic, nonsubjective, normative, concertive and ego.
In order to guarantee that the administration can accomplish its ends, several of import positions must be controlled aa‚ ” finance, human resource, quality and clients.