The final element of а management control system is the taking of corrective action to rectify the situation which has led to the failure to achieve objectives or targets, or other forms of deviations identified. This requires consideration of what саn bе done to improve performance. It requires the authority to take appropriate action to correct the situation, to review the operation of the control system and to таке аnу necessary adjustments to objectives and targets or to the standards of performance.
Forms of control
Control is far-reaching, it саn serve а number of functions and саn Ье manifested in а number of different forms.
Control systems саn focus оn the measurement of inputs, outputs, processes or the behavior of people.
Controls саn Ье concerned with general results or with specific actions.
Controls саn Ье concerned with an evaluation of overall performance of the organization as а whole or with major parts of it. This requires broadly based standards of performance and remedies for corrective action. Total quality control, concerned with аН areas of the organization, саn Ье seen as part of Total Quality Management programmes.
Controls саn Ье concerned with the measurement and performance of day-to-day operational activities. This calls for more specific standards of performance and speedy corrective action
Some authors identify three main forms of control:
Direct control Ьу orders, direct supervision and rules and regulations. Direct controls mау Ье necessary, and more readily acceptable, in а crisis situation and during training. But in organizations where people expect to participate in decision making, such forms of control mау Ье unacceptable. Rules and regulations which are not accepted as reasonable, or at least not unreasonable, will offer some people а challenge to use their ingenuity in finding ways round them.
Control through standardization and specialization. This is achieved through clear definition of the inputs to а job, the methods to Ье used and the required outputs. Such bureaucratic control makes clear the parameters within which one сапact and paradoxically makes decentralization easier. Provided the parameters are not unduly restrictive they сап increase the sense of freedom. For example, within clearly defined limits which ensure that one retail chain store looks like another, individual manager's тау have freedom to do the job as they wish.
Control through influencing the way that people think about what they should do. This is often the most effective method of exercising control. It mау Ье achieved through selective recruitment of people who seeтlikely to share а similar approach, the training and socialization of people into thinking the organization's way, and through peer pressure. Where ап organization has а very strong culture, people who do not fit in, or learn to adapt, are likely to Ье pushed out, even though they mау appear to leave of their own volition.
Characteristics of an effective control
People's behavior, naturally, is not the unique factor determining efficiency of the control. In order to achieve the purposes of the organization the control should possess several important characteristics:
It must be understood by those involved in its operation.
Controls should conform with the structure of the organization and be related to decision centers responsible for performance. Information should Ье supplied to those managers who have the responsibility for specified areas of activity and who are сараЫе of using this information to evaluate the degree of success in achievement of objectives: for example, the cause of excess expenditure in а manufacturing operation.
An effective control system should report deviations пот the desired standard of performance as quickly as possible. Ideally, indications of likely deviations should Ье discovered before they actually occur.
control system should draw attention to the critical activities which are important to the success of the organization. An unnecessary number of controls over comparatively unimportant activities are uneconomic and time-consuming; they сап have а demoralizing effect оп staff and тау possibly resu1t in lack of attention to the key control points.
То Ье effective, а control system must Ье flexible. It must yield information which is not influenced Ьу changes in other factors unconnected to the purpose of the control system. Control systems should Ье designed to improve the operations of the organization and Ье adaptable to changing environmental circumstances.
The control system should Ье consistent with the objective of the activity to which it relates. In addition to locating deviations from the planned standard of performance, the control system should Ье sophisticated enough to indicate ways in which performance сап Ье improved
Control systems should themselves Ье subject to а continual review to ensure that they are effective and appropriate in terms of the results they produce. They should not Ье too costly or elaborate, but should satisfy the characteristic features.
The control is effective if it has strategic character, is aimed at achievement of concrete results, and is duly, flexible, simple and economic.
When the organizations carry out the business in the foreign markets, function of the control gets an additional degree of complexity.
The control over the international scale is especially difficult business because of the big number of various spheres of activity and communication barriers. Productivity of the control can be improved, if переодuческu to carry out meetings of responsible heads in headquarters of the organization and abroad. It is especially important to not make foreign managers the responsible for the decision of those problems which do not depend on them.
Control system can help fulfill peoples need at work and their presence may be welcomed. Often control over behavior is resented and perceived as a threat. The manager should, therefore, enlist the co-operation of control systems. The effective function of control systems is influenced by: motivation of staff; the operation of groups and the informal organization; organization structure; leadership style and systems of management.