Nature of Management Control - Control in Organizations - Phases of management control system -Management control vs. task control.
Every Organization exists to achieve certain objectives. It as limited sources at its command andoperates quite often in a dynamic environment. In order to achieve its objectives; the managersadministrators of the organization prepare and execute plans. After the plans are put into action there canbe several hurdles in the achievement of objectives. Plans are themselves may not be effective,Organization structure may be defective, staff may be incompetent, motivated, direction may be faulty orthe changes in the environment may disturb the operations. As a result performance may fail short of targets or expectations. Managers, therefore, require a system by which they can regularly monitorprogress, identify the bottlenecks and take timely actions to set right. This is the function of control.
Control is the System of ensuring that the actual state of affairs is in line in the desired state of affairs. It is the process of ensuring that activities and plans are producing the desired results. Accordinglyto
et.al.” Management control is the process
which managers assure that resources obtainedand used effectively and efficiently in the accomplishment of the organization's objectives."This definition highlights three main points about management control.
management controlis a Process consisting of some inter-related and sequential steps. Secondly, management control aims ateffectiveness and efficiency in the acquisition and utilization of resources such as money, materials,machinery and manpower. Thirdly, management control is designed to further the objectives of dieorganization.Anthony’s definition appears to be comprehensive though loose or general in nature. It does notspecify that management control is a continuous process of [measuring actual results with the desiredresults and of minimizing the gap between the two. It involves guiding and regulating operations towardssome pre-determined targets.In the words of Koontz and O’Donnell, “Managerial control implies the measurement of accomplishments against the standards and the correction of deviations to assure attainment of objectivesaccording to plans”.This definition focuses on the measurement of performance and corrective actions for ensuring thatplanned targets are achieved. However, the ongoing nature of control is not explicit in the definition.Moreover, corrective actions are not confined to adjustment of operations alone. Plans themselves mighthave to be revised.Mills has defined management control as “the handling of people-employees within theadministration, and clients, suppliers, government officials, bankers outside it-to get decisions made andcarried out in ways that will achieve the firm’s, objectives.
This definition appears to be too wide and treats management control as the total Managementprocess. Management control is an important function. Bin it is by no means the Whole of management. Forexample, management control does not include selection of personnel and building up of an organization.Tannenbaum has defined control as “any process in which a person or a group of persons or organizationof persons determined, that is, intentionally affects the behavior of another person, group or organizationThis concept of control equates control with influence and, therefore, this definition fails to differentiatebetween control and leadership.Management control may simply be defined as the continuous process of verifying whether actionsare being taken as planned and ensuring that the desired objectives are being taken as planned andensuring that the desired objectives are being efficient and effectively.Management control is thus concerned with the maintenance, which is required to achieve thepurposes of the organization.