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  • Essay / Controlling in Organizations - 1110

    Controlling: The process of measuring performance and taking action to ensure desired results. Importance of Control The purpose of control is to ensure that plans are carried out and that actual performance meets or exceeds objectives. Control ensures that the right things happen in the right way and at the right time. This helps ensure that individual and group performance contributions are consistent with organizational plans. It is helpful if performance achievements within an organization are consistent with each other in terms of means and objectives. And it helps ensure that people comply with the organization's policies and procedures. Steps in the Control Process “X The cybernetic control system is autonomous in its performance monitoring and correction capabilities. Step 1 ¡Xestablish goals and standards. The performance objective should represent the key results you want to achieve. accomplish. The emphasis in planning should be on describing ¡§critical¡¨ or ¡§essential¡¨ outcomes that will make a substantial difference in the success of the organization. Standards are also important and should be considered from the start. Two types of standards: „X Output standards – measure performance results in terms of outcomes such as quantity, quality, cost or time of work completed. " is to accurately measure performance results and/or performance efforts The measurement must be precise enough to detect significant differences between what is actually happening and what was initially planned. Goal and standards This can be expressed as the following control equation: Need for action = Desired performance ¡V Actual performance There are different ways to compare desired and actual performance: „X Historical comparison uses past performance as a benchmark for evaluating current performance „X Relative comparison uses the performance achievements of other people, work units, or organizations as the standard of evaluation. „X Technical Comparison uses scientifically established engineering standards through methods such as time and motion studies. Step 4: Take corrective action if necessary. This process can also be applied to personal planning. This step involves taking whatever action is necessary to correct or improve things and allows for judicious use of management by exception the practice of giving priority attention to situations that show the greatest need for action. This approach can save time, energy and other valuable resources, while allowing all efforts to be focused on the areas that need it most...