Introduction to Management

Chapter Summary

Control is an essential function for managing an organization. It is used to ensure that what is done is what was intended. The control function plays an important role from the top to the bottom level of an organization.

Controlling involves the comparison of actual results with planned results. Thus, there is considerable overlap between the planning, organizing and leading functions of a manager. Coinciding with the three levels of management, there are three levels of control - strategic, tactical and operational.

Although control systems must be tailored to specific situations, they generally follow the same basic process. The control process consists of seven steps: determining the areas to control, establishing standards, measuring performance and comparing it against the standards, recognizing good or positive performance, taking corrective action when necessary, and adjusting standards and measures when necessary.

Organizations implement control in a number of different ways and at different levels. Along with determining the areas in which they wish to use controls, managers need to also consider the types of control they wish to use. There are various types of control based on the stage in the production process when they are used, and on the degree of human discretion they require. To be effective, control systems should reflect organizational plans, positions and structure; should be understandable; should be cost-effective; should identify only important exceptions; should be flexible; and should provide accurate information.

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