monitoring activities to ensure that they are being accomplished as planned & of correcting any significant deviation. All managers should be involved in the control function even if their units are performing as planned An effective control system leads to attainment of goal . William G Ouchi the founder of Theory Z suggested that there are 3 different approaches to design control system. a) Market Control:- In this approach the external market mechanism such as Price Market share are given importance .This type of control takes place when the firms products face a stiff competition in market place eg:- Matsushita Divisions Audio, Video, Home appliance, Industrial equipment etc.. On the basis of the profit contributed by each division resources are allocated to them b) Beauctratic Control :- Here the importance is given to the size of the organization , rules & regulation , procedure & policies .Here the control depend on the standardization of activities & exhibiting appropriate behavior & meeting performance standards eg- BP managers have full autonomy but have to stick to the budget Clan Control :- Here employee behavior is regulated by shared values , norms, traditions, rituals, belief & other aspects of Org. Culture . Beauctratic Control is based on hierarchical mechanism where as clan control is based on individual & group behavior & performance. Features of Control 1. Control is looking forward because one can control future happening & not the past . 2. Control is continuous process 3. Control is a coordinated integrated system
Steps in Control Process
Establish Standards Measure Performance Compare Performance against standards Determine need for corrective action Change standards Correct the deviation Maintain the status quo 1. Establishment of control standards :- Every action in the organization is directed towards the objectives .So for identifying the goals you should know- What is the level of result that you desire .The desired level of performance should not be too high or too low .It should be feasible Performance Data Upper Limit Lower Limit Tolerance level 2. Measuring : There are two important factors in measuring they are :- a. How we measure ? b. What we measure ? How we measure ? There are methods foe measurement they are: Personal observation Statistical report Oral report Written report What we measure ?
What we measure is more important than how we measure ? The selection of wrong criteria may lead to dysfunction .A production manager may take Quantity produced per day ,unit produced per labor hour, damager rate etc.. as criteria for measurement. Administrative manager take the documents processed per day. Marketing manager take No: of costumers as critical factor for measurement 3. Comparing : Comparing step determine the degree of variation between actual performance & set standards. Some variation in performance is expected in all activities .It is c5ucial to determine the acceptable range of variation . Deviation that exceeds this range became significant& need the managerial attention. In comparison stage manager is concerned with size & direction of variation IV. Taking managerial action : Managers can take two type of action a. Correct & actual performance: They are of two types 1- Impeditive corrective action Type -2 ask how & why performance has deviated & then proceeds to correct the source of deviation b. Revise the standard :- It is possible that the variance was a result of an unrealistic standard ,then it is the standard that need corrective action not the performance Types of control Feed Forward Control:- This is the most desirable type of control .It prevents anticipated problems .It takes place in advance of actual activity .It is future directed .Here managerial action takes place before the problem occurs. Eg: Preventive maintenance programme for air craft before flight. Concurrent Control: This control is enacted while the work is being performed ,MGMT can correct problems before they become too costly .The best form of concurrent control is direct supervision.When manager mointors subordinate action manager can take corrective action then & there itself
Feed Back Control:- Here the control takes place after the activity has done .The major draw back of this type of control is that by the time manager take corrective action damage has already happened .The advantage that this control provide is that feedback provided managers with meaningful information on how effective his planning effort was. If the variance was less it shows there was good planning .If the deviation was large it help manager to make new plan Type of control Input Process Out put Feed forward control Concurrent control Feed back control Anticipates problems Corrects problems as & when they happens Corrects problems after they occur Flow of information Corrective action Feed forward control Concurrent control Out put Processing Inputs Feed Back Level of control Strategic control Structural control Operations control Finance control Strategic Control: Focuses on how effectively the organizations strategies are succeeding in helping the organization meet its goals Structural control: concerned with how the elements of the organization structure are serving their intended purpose Financial control: concerned with organizational financial resources Operations Control: focuses on the processes the organization used to transform resources into products or services Importance of control Managerial responsibility: When a person is responsible for the performance of his subordinates he must exercise some control over them Psychological pressure : control process put psychological pressure on the individual for better performance Org. Efficiency & effectiveness: control system manager are motivated to perform better & coordinate their work more efficiently Limitation of Control Curbs freedom Curb on creativity Rigid control system may be problem