Proper planning ensures that the organization follows a mapped course towards its vision and mission. If feedback practice is followed by the management, the control process will be very easy. To control means to check and ensure that each activity is performed in a planned manner. First of all, organizations set their goals. iii. How can we get there from here? iv. The functions of material management differ from organisation to organisation. If every member of the organisation starts working with responsibility or as a responsible member then only control process will be successful otherwise not. decay in its sales. It consists of the assignment of starting and completion times for various operations to be performed. Thus, what may be a good quality for one person may not be good for another person? Point: In Academic Settings and any High-Performing Organization, Leading and Managing are Inseparable In academia, faculty and administrators engage in knowledge management. Sometimes control may be an obstacle in subordinates initiative and spirit. The modern business climate is a very dynamic one and contemporary businesses need to implement a highly effective control system to make sure that the firm’s strategic goals are being met. Managerial planning seeks consistent, integrated and articulated programmes while management control seeks to compel events to conform to plans. However, some special measures are devised to exercise overall control. 5. Control action is guided by adequate information from the beginning to the end. The following discussion points out the problems and methods of control in each major area: Policies are formulated to govern the behaviour and action of personnel in the organization. Traditionally only financial measures were used to evaluate performance of firms, but in balanced scorecard method, non-financial performance measures are also included. Break-even analysis can help the management to know the minimum volume of sales it should aim at to avoid losses. The very purpose of control is prevention and not punishing. It reduces confusion and uncertainty. News from Editor-in-Chief Arie Y. Lewin "I am thrilled to share that Professor Xiao-Ping Chen, the Condit Endowed Chair in Business Administration, University of Washington, has accepted the IACMR Search committee invitation to serve as the next Editor-in-Chief of Management and Organization Review beginning January, 2022. The organization and management section of your business plan should summarize information about your business' structure and team. Control may lose its importance if the subordinates decline to accept it. Where do we want to be? Policies are generally controlled through policy manuals which are prepared on the inputs provided by top management. The controlling function find out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same. Control over each segment of the organization contributes to overall organizational control. It consists of a series of budgets depending upon varying levels of output and sales. Therefore, the decision, at times, is more likely to be a guess work and misleading. A good control system is one that can be easily installed and inexpensively maintained. ii. Therefore, a leader must have the ability to convince people to pull people towards his direction. It is this function of management that helps organization conduct performance appraisal, which is a very crucial element in business. This would give the management enough time to tackle the problems before they increase in proportion. There would be no sense of direction, and the whole establishment would just collapse. The normal procedure is to trace the cause of an unsatisfactory result back to the persons responsible for it and get then to correct their practices. Controlling in Management – 7 Main Advantages. Controlling also ensures that an organization’s resources are being used effectively and efficiently for the achievement of predetermined goals. Individuals’ resistance to control emerges from the feeling that control standards are set too high and are observed rigidly. Many people may still behave according to the assumptions of Theory X and they need rigid control. The direct opposite of sound management is mismanagement. (2005) effective leadership must be built on a solid foundation which is in turn dependent o… In fact, control mechanism is the basic in-built feature of modern organizations. The concept of balanced scorecard was developed in the 1990s by Robert Kaplan and Davis Norton. In audit, a careful examination of all account books, vouchers of transaction and all other relevant documents pertaining to financial transactions, profit and loss accounts and Balance Sheet of the company for the respective financial years are scrutinised thoroughly (cent per cent) to have a clear picture of the state of affairs of the financial matters of the company. Through the downward communication, a superior sends the information about what a subordinate is expected to do; the upward communication is used to get control information from the subordinates, that is, what they have done. Employees can express themselves, and as a result, matters arising are address appropriately. The above areas of control are relevant in a large organization and cover all levels of management- top, middle, and lower. Programme evaluation and review technique (PERT) was firstly used in 1957 in U.S.A. as a tool of planning and controlling the “Polaris Missiles Programme” by Booz, Allen and Hamilaton in association with the U.S. These factors may force the organisation to deviate from the original plans. He would be able to achieve his objectives only when he undertakes adequate steps to remove these deviations. For this purpose, periodic analysis of activities of each department is conducted. Second, the measures should relate to the managerial domain of each of the managers as each of them is responsible to exercise control in his own domain. This thing is not possible in all cases. Behavioural scientists have concluded that people try to be self-actualized but the basic problem which comes in the way is provided by the organization itself. These techniques of control are broadly classified into two categories, namely, budgetary control and non-budgetary control. The functions performed, methods adopted, and time consumed by every individual are studied to eliminate non­essential functions and methods to save time. To make comparison with financial accounting, preparation of cost and profit in respect of the accounting period. c. Return on Investment (ROI) – ROI expresses the ratio of total profits in relation to total capital investments. As such, there is a need for individuals who can adapt to the evolution of our ever-changing academic organizations. At the same time it must be flexible so that it can be changed as per varying conditions, if necessary. and to give priorities for the future. It bridges the gap from where we are & where we want to be. The accuracy of a budget depends to a large extent upon the estimates made. A complicated system will only create problems for the operative workers and defeat its very purpose. It becomes a heap of useless information – Due to over enthusiasm accountants make the costing system excessively detail in nature. For effective control, it is important to know the critical areas where control would be exercised. Diversified product lines need to be watched closely to ensure that quality and profitability are being maintained; sales organisation’s various markets — foreign and domestic — require close monitoring. Besides, it is specified that the superiors should not misuse their authority. According to Batliboi, costing is a set of account, arranged systematically and accurately. Control the standard of production process, v. Total quality control (TQM) of the product. It gives information about the wealth created by the company for the providers of capital. Remember, failing to plan is planning to fail. These three factors are interrelated and interdependent. Features of the Balanced Scorecard Method: ii. The budgetary control information is helpful to the managers in decision making. Control aims at this. Continuous learning and growth is the basis of success for any organisation in today’s climate of rapid technological improvements. ... Planning and controlling are the Siamese twins of management. Individuals object to control because of the perception that evaluation system through which the performance is measured may not be objective and many shortcomings may emerge in the evaluation process. The management has to adopt various control systems to ensure that the firm’s performance is consistent with the organisational goals and objectives. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. Rodrigo Valio Domínguez Gonzalez 1, Manoel Fernando Martins 2. This is likely to happen more in the case of work performance which cannot be measured quantitatively. Managers and their subordinates very often commit mistakes. Each of the function blends into the other thus, affecting their performance. The accuracy of these ratios depends upon the accuracy of the financial statement data, and any discrepancy in the data will affect the credibility of such ratios. The management frames the policies and plans to help the organisation function smoothly. These people believe more on self-control rather than externally-imposed control and resist it. The direct opposite of sound management is mismanagement. 5. Management can get an idea about how successful it had been in increasing shareholders’ wealth, which is a better measure of success than profits. Responsibility for controllable deviations lies with whoever has made unfortunate decisions. There are various ways of measuring the performance, such as through scorecards, reports, sample checking, etc. iv. Based on this pattern of information systems, an information system is defined as follows: “An information system can be any organized combination of people, hardware, software, communication network, and data resources that collects, transforms, and disseminates information in an organization.”. There may be a variety of factors which influence their work performance, and many of these factors are not controllable by them. Information may be a fact or set of facts which is valuable in specific decision, from among alternative courses of action. Reasons of Deviations 9. 2. If the products and services fail to satisfy the customers, then they will move away from the company. Resistance, if employees feel that control is not in accordance with their need satisfaction and they have a perception that they can get it changed by their efforts. 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