FACULTY OF MANAGEMENT

STUDIES

CHARACTERISTICS OF EFFECTIVE CONTROL SYSTEM

Presentation by Nishant kumar roy MBA 1ST SEM Roll no. 28

CONTROL

DEFINITION Controlling is the process through which managers assure that actual activities conform to the planned activity.

According to Henri Fayol, Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.

STEPS OF CONTROLLING PROCESS

Establishing

standards.

Measuring

performance. performance against

Comparing

standards.
Taking

corrective action.

IMPORTANCE OF CONTROL
Control

monitors whether objectives are being accomplished as planned and delegated authority is being properly used. Serves as the final link in the functional chain of management. Provides feedback on performance of subordinates to whom delegated authority has been granted. It is pervasive in nature (Finance, H.R. Marketing, Operations) Improves employee morale. Helps in better planning.

Establishing standards

Measuring

Correcting

actual
performance

Comparing

CHARACTERISTICS OF EFFECTIVE
CONTROL SYSTEM Effective control system should have the following characteristics
o

Accurate : information on performance should be accurate. Faulty information can influence the control and wrong decisions might be taken.

Timely :

the information should be timely. Not early not late.

Objective and comprehensible : the control system should be understandable and objective oriented. Economic : the cost involved in control system should be less than the benefits derived from the control system. Flexible : the system should be flexible enough so that organizations could react to take back faulty decisions or take advantages of new opportunity.

Organizationally accepted : the control should be feasible in all respect and should be accepted by all the members of the firm.