Controlling - Process and Types
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suriya kishoreControlling - Process and Types
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suriya kishoreCommon questions
Powered by AIStrategic control focuses on long-term goals and the external environment, ensuring that the organization's strategies align with changing conditions. This type of control is usually the responsibility of top management. Operational control, by contrast, is concerned with short-term performance and internal processes, focusing on the allocation and use of resources within the organization. Executive or middle management typically handles operational control under the guidance of top management .
Environmental scanning and information gathering are crucial in strategic control as they help organizations stay informed about external changes and opportunities, allowing for the adjustment of strategies to align with the evolving environment. These techniques differ from those used in operational control, which focus more on internal efficiency through methods such as budgeting, scheduling, and Management by Objectives (MBO) to ensure resources are effectively utilized within the organization .
Feed forward control differs from feedback control primarily in timing and focus. Feed forward control evaluates inputs and attempts to prevent issues before they affect a process by taking corrective action early. Feedback control, on the other hand, evaluates outcomes and takes corrective measures after the process is completed. Employing both allows an organization to prevent issues before they arise and correct them after they occur, enhancing overall efficiency and responsiveness to changes .
Managers can deal with the difficulty of measuring performance in these activities by employing a mix of qualitative and quantitative measures, such as customer feedback, qualitative assessments from supervisors, and trends in operational data. They can also develop proxy indicators that reflect overall performance when precise measurements aren't feasible, like evaluating employee engagement or client retention rates for service quality .
Establishing precise wording and measurable objectives is significant because it provides clear criteria for evaluating performance, ensuring that managers and employees understand expectations. This clarity minimizes ambiguity and helps in the accurate assessment of whether goals are met, facilitating effective corrective actions and improvements in processes .
Managers may face challenges in establishing accurate standards in less technical fields due to the intangible nature of many variables. For instance, attributes such as employee morale, customer satisfaction, and the quality of interpersonal interactions are difficult to quantify. This requires managers to often rely on qualitative assessments or vague standards that can lead to inconsistencies and difficulties in performance measurement .
Concurrent control helps organizations manage operations effectively by enabling real-time monitoring and adjustment of processes. This form of control minimizes potential issues by allowing immediate corrective actions during operations. Practical examples include quality checks during production, real-time inventory management, and live customer service monitoring to ensure service standards are maintained .
Control is described as both a process and a result because it involves both the continuous activity of monitoring and evaluating organizational activities (process) and the outcome of achieving goals through these activities (result). This dual nature implies that a manager must not only oversee and guide operations to ensure they meet planned objectives but also evaluate the effectiveness of these operations in achieving desired outcomes .
The four fundamental steps in the control process are: 1) Establishing standards and methods for measuring performance; 2) Measuring performance; 3) Determining whether performance matches the standard; 4) Taking corrective action. These steps help in achieving organizational goals by ensuring that activities align with the objectives set during planning. They allow managers to assess performance accurately, identify areas where corrective actions are required, and ensure that operations remain on track and efficient .
Emphasizing corrective actions designed to improve performance is critical because it focuses on the proactive resolution of issues, fostering a productive and forward-looking organizational culture. Instead of simply identifying failures, corrective measures help ensure that similar issues do not recur and that the organization continuously improves its operations to meet its performance standards .
