3. Significance of Control Process
-Controlling function is closely allied to the
other functions of management:
•
•
•
•
*Planning
*Organizing
*Directing
*Staffing
6. What is Control System?
A set of mechanisms that are
designed to increase the
probability of making
organizational standards and
goals.
7. Purpose of Control System
• Control Systems are developed
to regulate any area a manager
considers important like quantity
produced, resources expanded,
profit margins, quality of
products or services, client
satisfaction, or specific activities
that are performed in producing
a product or service.
8. Controls help managers
avoid such problems
especially with five particular
challenges a firm may face
namely coping with
uncertainty, detecting
irregularities, identifying
opportunities, handling
complex situation and
decentralizing authority.
9. LEVELS OF CONTROL
STRATEGIC CONTROL
A control type that involves
monitoring environmental factors
that could affect the viability of
strategic plans, assessing the
effects of organizational strategic
actions and ensuring that
strategic plans are implemented
as intended.
10. TACTICAL CONTROL
A control type that focuses on assessing
the implementation of tactical plans at
department levels, monitoring
associated periodic results, and taking
corrective action as necessary.
11. OPERATIONAL CONTROL
A control type that involves
overseeing the implementation of
operating plans, monitoring day to
day results and taking corrective
action when required.
12. Steps in Control Process
•
•
•
•
•
•
•
• Determine areas to control
• Establish Standards
• Measure Performance
• Compare Performance
• If Standards are met, recognize performance
• If Standards are not met, take corrective action
• Adjust Standards and measures as necessary
13. Managerial Approaches to Implementing Controls
• Market Control
• Bureaucratic Control
• Clan Control
14. Characteristics of an Effective Control System
• Future Oriented
• Multidimensional
• Cost Effective
• Accurate
• Realistic
• Timely
• Monitorable
• Acceptable to Organization Members
• Flexible
