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Controlling: Components of Organizational Control Systems

Controlling is the process of ensuring organizational objectives are achieved by measuring actual performance against targets. It involves measuring sales, production, worker attendance, safety records, and supplies used against targets in these areas. There are different types of control - feedback control anticipates problems, concurrent control detects variances during ongoing operations, and post-action control evaluates past activity to identify improvements. Key components of organizational control systems include the strategic plan, long-range financial plan, operating budget, performance appraisals, statistical reports, policies and procedures. A comprehensive internal audit aims to detect dysfunctions in the organization before they become large problems.

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Michelle Palcon
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463 views2 pages

Controlling: Components of Organizational Control Systems

Controlling is the process of ensuring organizational objectives are achieved by measuring actual performance against targets. It involves measuring sales, production, worker attendance, safety records, and supplies used against targets in these areas. There are different types of control - feedback control anticipates problems, concurrent control detects variances during ongoing operations, and post-action control evaluates past activity to identify improvements. Key components of organizational control systems include the strategic plan, long-range financial plan, operating budget, performance appraisals, statistical reports, policies and procedures. A comprehensive internal audit aims to detect dysfunctions in the organization before they become large problems.

Uploaded by

Michelle Palcon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Controlling

1. Controlling - It is the process of


ascertaining whether organizational
objectives have been achieved; if not,
why not; and determining what
activities should then be taken to
achieve objectives better in the future.
2. Sales targets expressed in monetary
or quantity terms
3. Production targets expressed in
quality or quantity
4. Worker attendance expressed in
terms of rate of absence
5. Safety record expressed in number of
accidents for a given period
6. Supplies used expressed in quantity or
monetary terms for a given period
7. Measuring Actual Performance - It is
done so that when shortcomings occur,
adjustments could be made.
8. Feedback Control - Type of control
taken when management anticipates
problems and prevents their
occurrence.
9. Concurrent Control - Undertaken when
operations are already ongoing and
activities to detect variances are made.
10. Feedback Control - Done when
information is gathered about a
completed activity and evaluate steps
for improvements are derived.
11. Components of Organizational Control
Systems:
Strategic Plan
Long-range financial plan
Operating budget
Performance Appraisals
Statistical reports
Policies and procedures
12. Strategic Plan - Provides basic control
mechanism for the organization.
Dictates whether activities are set
aside, modified or expanded when
activities do not facilitate
accomplishment of strategic goals.
13. Long Range Financial Plan - This
recommends a direction for financial
activities. If the goal does not appear to
be where the firm is headed, the
control mechanism should be made to
work.
14. Operating Budget - This indicates the
expenditures, revenues or profits
planned for some future period
regarding operations. The figures
appearing in the budget are used as
standard measurements for
performance.
15. Performance Appraisals - This measures
employee performance. It also provides
employees with a guide on how to do
their jobs better in the future. Also, it
functions as effective checks on new
policies and programs.
16. Statistical Reports - Contain data on
various developments within the firm.
(e.g. labor efficiency reports, quality
control reports, sales reports, accident
reports etc.)
17. Policies and procedures - The
framework within which the objectives
must be pursued. A plan that describes
the exact series of actions to be taken
in a given situation.
18. Identifying Control Problems -
Recognizing the need for control is one
thing, actually implementing it is
another. The engineer manager must
consider useful steps in controlling
when operations become complex.
19. Executive Reality Check - Employees at
the frontline often complain that
management imposes certain
requirements that are not realistic.
20. Comprehensive Internal Audit -
Undertaken to determine the efficiency
and effectivity of the activities of an
organization. A small activity that is not
done right may continue to be
unnoticed until it snowballs into a full
blown problem.
- A comprehensive internal audit
aims to detect dysfunctions on the
organization before they bring
bigger troubles to management.

21. General Checklist of symptoms of
inadequate control - Used when
comprehensive internal audit cannot be
availed

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