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Control

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Control- Defined as any process that directs the activities of individuals toward the achievement of organizational goals. Utilizing control effectively is how managers can make sure that activities are going as planned.

Control is a means or mechanism for regulating the behavior of organization members. Left on their own, people may act in ways that they perceive to be beneficial for their selves or the organization they work for but that action may actually harm the organization as a whole. In some cases it’s just plain ignorance, individuals just don’t realize the overall costs of their actions. Thus, control is one of the fundamental forces that keep the organization together and heading in the right direction.

Purpose- To ensure that activities are completed in ways that lead to accomplishment of organizational goals. * It can provide organizations with indications on how well they are performing * It allows an organization to adjust performance in order to keep moving in the right direction.

Set performance standards Every organization has goals: profitability, innovation, satisfaction of customers and employees, and so on. A standard is the level of expected performance for a given goal. So set standards for any and all activities —financial activities, operating activities, legal compliance, charitable contributions, and so on.
Measure performance It’s an ongoing process. Performance measures should be valid indicators (e.g. days absent, papers filed, samples distributed, and dollars earned) Obtain data on performance through; written reports, oral reports visual observations.
Comparing performance with the standard Make sure to define what is permissible deviation is from the performance standard In some instance small deviations should be acceptable Make and use a timetable for measurement
Determine the need for corrective action Do nothing Correct the problem or the deviation to bring the operation into compliance with the standard Change the standard if needed, sometimes it was set to high or low.

Mistakes and problems are inevitable, don’t expect everything to run perfect, however expect management to catch and correct their mistakes quickly and efficiently.

Control system
Effective control systems maximize potential benefits and minimize dysfunctional behaviors.

Effective control systems maximize potential benefits and minimize dysfunctional behaviors. To achieve this, management needs to design control systems that (read 1-5)

Establish Valid Performance Standards- An effective control system must be based on valid and accurate performance standards. The more effective standards tend to be expressed in terms that are objective (observable/ documented) rather that subjective(opinion).

Provide Adequate Information- Management must communicate to employees the importance and nature of the control system. Then people must receive feedback about their performance. Feedback motivates people and provides information that enables them to correct their own deviations from performance standards

Ensure Acceptability to Employees- Employees are less likely to resist a control system and exhibit dysfunctional behaviors if they accept the system. They are more likely to accept systems that have useful performance standards but are not over controlling. Employees also will find systems more acceptable if they believe the standards are possible to achieve.

Maintain Open Communication- When deviations from standards occur, it is important that employees feel able to report the deviations so that the problem can be addressed. If employees come to feel that they can communicate with their managers without fear of reprisal it’ll promote a better atmosphere for the employees to work in, which in return will promote increased productivity.

Use Multiple Approaches – In some instances multiple approaches are necessary. An Effective control system will sometimes require managers and organizations to use other techniques and practices of good management.

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