Organizational Control Essay

2521 words - 10 pages

Controlling is the fourth management function and its purpose is straightforward- to make sure that actual performance meets or surpasses objectives. It is well used for decision making and problem solving. Effective control depends on other management functions and it gives feedback to them. These functions are planning, organizing and leading. Planning sets directions and allocates resources. Organizing puts people and material resources together in working combinations. Leading motivates people to use these resources in the best way. Basically, the function of controlling is to make sure that the right things happen in a right time and in the right way.Control helps that overall directions of individuals and groups are consistent with short-range and long-range organizational plans. Also, it helps to ensure that objectives and accomplishments are coherent with one another throughout an organization. Moreover, it helps maintaining fulfillment with essential organizational rules and policies. Good example where we can see role of control is in helping to protect individual rights to become equivalent with employment opportunities at work. The control process practiced by managers includes four steps: 1) establish objectives and standards 2) measure actual performance 3) compare results with objectives and standards and 4) take actions if necessary1. The controlling process starts with establishing performance objectives and standards which means that the controlling process begins with planning. Performance objectives should be defined and associated with specific measurement standards for determining how well they are accomplished. Standards are the targets of performance. The next step of the control process would be measuring performance. This step requires accurately measurement of the performance outcomes achieved and/or the performance inputs applied. Although such measurement is not always practicable, the measurement of performance against standards should be done perfectly because in that way some deviations can be detected in advance and avoided by appropriate actions. But there are many activities that are hard to measure and for which is really hard to set the standard. It may be really easy to set labour –hour standards for the mass-produced item and it may be equally easy to measure performance of these standards, but when it comes to custom-made item, it is really hard to measure performance because standards are difficult to set. The area of an organization where the performance measure is commonly taken is the financial affairs area. On the basis of performance measurement accountant`s job is to support the company actions that meet financial standards and disapprove actions that fall below standards. Third step in the control process include comparing actual performance with objectives and standards. This is a test how control works in a given situation. Comparison of the actual performance with desired performance...

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