What does control mean in the context of an organization Free essay! Download now
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What does control mean in the context of an organization
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| Words: 683 | Submitted: 15-Feb-2015
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DescriptionThis essay discuss the importance of control in organisation
Question: a) What does control mean in the context of an organization
b) Highlight the main elements of a control system and ensure that you integrate a ‘systems model’ in your answer.
c) why is the control function so very important to managers in a Caribbean environment?
Control in the context of an organization is the process of monitoring, controlling and correcting work performance. It involves a three step process 1. Measuring actual performance – this can be done by personal observation, statistical reports, oral report and written reports, what is measured, will determine the approach that will be used. 2. Comparing – this determine the variation between actual performance and standard. Although some variation in performance can be expected in all activities, it is critical to determine an acceptable range of variation. 3. Taking managerial action - if organizational plans have not been met, managers can take action which can range from, doing nothing, correcting actual performance or revising standard. If managers are not satisfied with employees’ work performance they may choose various techniques including, implementing training programs or increasing benefits thus motivating employees to increase their level of productivity. Variances may also be a result of an unrealistic standard that is, goals that are set too low or too high. If this is the case, managers would need to revise the standards not the performance.
– 1. Market control – this involves the use of price competition to evaluate output. Managers compare profit and prices to determine the efficiency of their organization. In order to use this type of control, it is necessary to have a reasonable level of competition in the goods or service area and be possible to specify requirements clearly. Market control is unsuitable in controlling functional departments unless, the price for services is through competition and its representative of the true value of provided services. 2. Bureaucratic control – this is the use of rules, policies, hierarchy of authority, written documentation, reward system and other formal mechanism to influence employees behavior and assesses performance. Bureaucratic control can only be used when behavior can be controlled with market for price mechanisms. 3. Clan control – this represents cultural values almost the opposite of bureaucratic control. Clan control relies on values, beliefs, corporate culture, shared norms and informal relationships to regulate employee behavior and facilitate the reaching of organizational goals. Organizations that use clan control requires trust among their employees. Given minimal direction and standards employees are assumed to perform well, they participate in setting standards and designing the ...
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