A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance. They may change their minds, fine. This article takes a broader perspective on control and discusses the following questions: When the results achieved are not satisfactory, the inputs, which include the specific actions and types of persons involved, can be changed to provide different results.
The larger the unit, the more likely that the control characteristic will be related to Controlling aspect of management output goal. If a manager makes all the decisions in certain areas, those areas cease to be control problems in a managerial sense because no other persons are involved.
As the money is spent, statements are changed to reflect what was spent, how it was spent and what it Controlling aspect of management. Consequently, more resources should be devoted to controlling the new-product activity, even though it is a far more difficult area to control.
These systems are effective only if employees understand what is required of them, and they feel that their individual actions will be noticed and rewarded or punished in some significant way. A common problem with specific-action controls is that they cause operating delays.
The challenge is to have each individual acting properly as often as possible. They claim that management should exist to support employee's efforts to be fully productive members of organizations and communities -- therefore, any form of control is completely counterproductive to management and employees.
For example, a department store introduced an incentive compensation plan to pay employees on the basis of sales volume. This is likely, for example, in a small business with a sales force comprised solely of relatives and close friends.
This might take the form of work rules e. Very broadly, quality includes specifying a performance standard often by benchmarking, or comparing to a well-accepted standardmonitoring and measuring results, comparing the results to the standard and then making adjusts as necessary. Why Are Controls Needed?
What is good control? Controlling Function of Management What is Controlling? General plans are translated into specific performance measures such as share of the marketearningsreturn on investmentand budgets.
Even if employees are properly equipped to perform a job well, some choose not to do so, because individual goals and organizational goals may not coincide perfectly. Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort.
Planners must establish objectives, which are statements of what needs to be achieved and when.
Process[ edit ] Step 1. In most cases, management has some, but less than complete, knowledge of which specific actions are desirable and some, but not perfect, ability to measure the important result areas.
Consider, for example, control over a real-estate development business where large capital investment decisions are made frequently. Quality Control and Operations Management The concept of quality control has received a great deal of attention over the past twenty years.
My views on five most important aspect of project management are as follows: Results of these decisions are difficult to measure in a timely, accurate fashion because of their long-term nature; they tend to be inseparable from the results of other actions and are confounded by changes in the environment.
If managers discover that certain specific actions produce consistently superior results, then it might be beneficial to inform employees of the specific actions that are expected of them, for example, by publishing these desired actions in a procedures manual.
Expected performance can be defined broadly, for instance, with a goal for annual net income. It is beyond the scope of this article to provide an exhaustive enumeration of the many negative side effects possible.
It also requires that managers be good decision makers. No matter what one calls the following methods -- coordination or control -- they're important to the success of any organization.
Only personnel controls or problem avoidance are available options. In general, reasonably certain or tight control requires: Personnel policies and procedures help ensure that employee laws are followed e.Video: Controlling as a Function of Management In this lesson, we will explore the role of controlling as a function of management and its use of various control mechanisms to reach organizational.
Recently, the concept of quality management has expanded to include organization-wide programs, such as Total Quality Management, ISO, Balanced Scorecard, etc. Operations management includes the overall activities involved in developing, producing and distributing products and services.
Control, or controlling, is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.
A typical process for management control includes the following steps: (1) actual performance is compared with planned performance, (2) the difference between the two is measured, (3) causes contributing to the difference are identified, and (4) corrective action is taken to eliminate or minimize the difference.
Controlling function of management consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management.Download