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Characteristics of Effective Control Systems

The document discusses the characteristics of an effective control system. It defines controlling as verifying that activities conform to plans according to Henri Fayol. The key steps in the controlling process are establishing standards, measuring performance against standards, comparing actual performance to standards, and taking corrective action. An effective control system is accurate, timely, objective and comprehensible, economic, flexible, and organizationally accepted. It monitors goal accomplishment, ensures proper use of delegated authority, and provides feedback for improvement.

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Akhilesh Kumar
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52 views8 pages

Characteristics of Effective Control Systems

The document discusses the characteristics of an effective control system. It defines controlling as verifying that activities conform to plans according to Henri Fayol. The key steps in the controlling process are establishing standards, measuring performance against standards, comparing actual performance to standards, and taking corrective action. An effective control system is accurate, timely, objective and comprehensible, economic, flexible, and organizationally accepted. It monitors goal accomplishment, ensures proper use of delegated authority, and provides feedback for improvement.

Uploaded by

Akhilesh Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

FACULTY OF MANAGEMENT

STUDIES

CHARACTERISTICS OF EFFECTIVE CONTROL SYSTEM


Presentation by Nishant kumar roy MBA 1ST SEM Roll no. 28

CONTROL

DEFINITION Controlling is the process through which managers assure that actual activities conform to the planned activity.

According to Henri Fayol, Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.

STEPS OF CONTROLLING PROCESS


Establishing

standards.

Measuring

performance. performance against

Comparing

standards.
Taking

corrective action.

IMPORTANCE OF CONTROL
Control

monitors whether objectives are being accomplished as planned and delegated authority is being properly used. Serves as the final link in the functional chain of management. Provides feedback on performance of subordinates to whom delegated authority has been granted. It is pervasive in nature (Finance, H.R. Marketing, Operations) Improves employee morale. Helps in better planning.

Establishing standards

Measuring

Correcting

actual
performance

Comparing

CHARACTERISTICS OF EFFECTIVE
CONTROL SYSTEM Effective control system should have the following characteristics
o

Accurate : information on performance should be accurate. Faulty information can influence the control and wrong decisions might be taken.

Timely :

the information should be timely. Not early not late.

Objective and comprehensible : the control system should be understandable and objective oriented. Economic : the cost involved in control system should be less than the benefits derived from the control system. Flexible : the system should be flexible enough so that organizations could react to take back faulty decisions or take advantages of new opportunity.

Organizationally accepted : the control should be feasible in all respect and should be accepted by all the members of the firm.

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