Introduction
Once managers assume responsibilities for their units, they decide “where they are going” (Planning), who will do what (Organizing), and how to motivate their employees (Leading). In this presentation, we are going to explore how to keep things under control in an organization.
It is imperative that all managers should be involved in the control function even if their units are performing as planned. Managers can't really know whether their units are performing properly until they have evaluated what activities have been done and have compared the actual performance with the desired standard. An effective control system ensures that activities are completed in ways that lead to attainment of the organization’s goals.
Controlling is related to each of the other function management. Controlling builds on planning, organizing and leading.
What is Control?
Control is the task of ensuring that activities are carried out and are providing the desired results. In simple terms controlling means setting a target, measuring performance and taking corrective actions required.
Management Control Strategy
Managers can use one or a combination of three control or styles: 1. Market 2. Bureaucracy and 3. Clan
Each strategy serves a different purpose.
Market:
Uses external market mechanisms, such as price competition and relative market share, to establish standards used in system.
Bureaucracy:
It emphasizes organizational authority and relies on administrative and hierarchical mechanisms, such as rules, regulations, procedures, policies, standardization of activities, well defined job descriptions, and budgets to ensure that employees exhibit appropriate behaviour and meet performance standards.
Clan:
The style regulates employee behaviours by shared values, norms, traditions, rituals, beliefs, and other aspects of the organization’s