Management Planning and Control Systems

Engineering in the human factors

The global economy has caused managers throughout industry to take a close look
at their often disappointing accomplishment, as well as the declining performanc
e, of their employees. In consequence, they have placed great stress on improvin
g productivity, usually by cutting costs and increasing controls.
The short-term benefits of such crisis management have improved productivity and
profits, but unless the human side of control is carefully considered, it is qu
ite likely that productivity and profits will decline again to even lower levels
in the long term.
Consider the position in some of the UK public sectors at the moment (May1998).
Education and health, for example, have by some accounts, morale problems amongs
t key frontline staff. Both have had imposed over recent times, management contr
ols, of one form or another.
A coincidence? Read on and draw your own conclusions
Why management control systems fail
A control system is necessary in any organization in which the activities of dif
ferent divisions, departments, sections, and so on need to be coordinated and co
ntrolled. Most control systems are past-action-oriented and consequently are ine
fficient or fail. For example, there is little an employee can do today to corre
ct the results of actions completed two weeks ago.
Steering controls, on the other hand, are future-oriented and allow adjustments
to be made to get back on course before the control period ends. They therefore
establish a more motivating climate for the employee.
What's more, although many standards or controls are simply estimates of what sh
ould occur if certain assumptions are correct, they take on a precision in today
's control systems that leaves little or no margin for error. Managers would be
better off establishing a range rather than a precise number and changing standa
rds as time passes and assumptions prove erroneous. This would be fairer and wou
ld positively motivate employees. There are three fundamental beliefs underlying
most successful control systems.
First, planning and control are the two most closely interrelated management func
tions.
Second, the human side of the control process needs to be stressed as much as, if
not more than, the tasks or 'numbers crunching' side.
Finally, evaluating, coaching, and rewarding are more effective in the long term
than measuring, comparing, and pressuring or penalizing