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Effective Management Control Systems

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0% found this document useful (0 votes)
9 views13 pages

Effective Management Control Systems

Uploaded by

udayrajbkj
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© All Rights Reserved
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

Controlling

Dr Rajnish Ratna
Controlling

Controlling means that managers develop (i)


appropriate standards (ii) compare ongoing
performance against those standards and (iii) take steps
to ensure that corrective actions are taken when
necessary. A good controlling system is generally
designed to keep things from going wrong, not just to
correct them afterwards.
Controlling
It is only through the process of control that management is able to
maintain the "equilibrium between ends and means, output and
effort." A properly designed system of control alerts managers of
the existence of potential problems and allows them to take
corrective actions, when necessary. The basic purpose of a well-
designed control system is to ensure that results are achieved
according to plan. Control is not just score-keeping. It is not just
plotting the course and getting locations reports. It is, rather,
steering the ship.
Features
The following are the features of controlling:
 Control is a positive force
 Control is a continous process
 Control is forward looking
 Control process is universal
 Control process is dynamic
 Control is goal-oriented
 Delegation is the key to control
 Control is based on planning
Importance of Control

The management process is incomplete and, sometimes, meaningless


without control function. Targets remain on paper, people tend to use
resources recklessly and managers find everything chaotic. The absence of
control could be very costly and unproductive. A good system of control,
however, puts an end to all of these and offers the following advantages:
1. Achievement of goals
2. Execution and revision of plans
3. Brings order and discipline
4. Facilitates decentralisation of authority
5. Promotes coordination
6. Cope with uncertainty and change
Limitations

Setting control points over important areas is not easy. It


is expensive, takes lot of time and effort on the part of
managers. Certain areas can be measured precisely. But
many areas, unfortunately, defy measurement in
quantitative terms.
The Control Process

The process of control involves the following steps:


 Establishment of standards
 Measurement of actual performance
 Comparison of actual performance with standard
 Taking corrective action
Characteristics of an Effective Control System
Effective control systems tend to have certain qualities in common.
These can be stated thus:
1. Suitable
2. Simple
3. Selective
4. Sound and economical
5. Flexible
6. Forward-looking
7. Reasonable
8. Objective
9. Responsibility for failures
10. Acceptable
Types of Control

Depending on the time at which control is applied, controls are of


three types:
 Feedback control (Historical or Post-control)
 Concurrent control
 Predictive or Feedforward control
Dimensions of Control

Managers, focus attention on key or critical areas


which have a significant bearing on the performance
of various departments in an organisation. The
following ways have been found to be relevant in this
regard:
1. Critical or strategic point control
2. Management by exception (MBE)
Resistance to Control
There is a natural resistance to controls, because controls take away a certain
amount of individual freedom. Employees tend to view controls in a negative way,
due to various reasons:
 Over-control
 Inappropriate controls
 Unachievable standards
 Unpredictable standards
 Rewards for inefficiency
 Uncontrollable variables
Overcoming Resistance to Control

There are means that managers can use to reduce negative reactions, namely:
 Employee participation
 Justifiable controls
 Precise and understandable standards
 Realistic standards
 Timely communication of findings
 Accurate findings
 Assuring support
 Positive reinforcement
Thanks

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