Assignment no III

Course: Principles of management

Topic: Organizational control process
Submitted To: Miss Erum Batool
Submitted By: Muhammad Tayyab Chistti (LCM -3927)
Muhammad Salman Sheikh (LCM- 3924)
Ali Haider Goraya (LCM- 3913)
Wajahat Ali (LCM- 3817)
 Organizational control process
Organizational control is the process of assigning, evaluating, and regulating resources on an
ongoing basis to accomplish an organization's goals. It comprises the strategic planning
process as well as methods and devices that make other agents’ behaviors consistent with
objectives.

Historically, managers have been considered to be the trustees of organizational

control. However, it is argued that managers are not alone in the quest for control and that
organizational control is both a source of power and of power struggles in contemporary
organizations.

Consequently, it is argued that organizational control is a social construction and that it

is best defined in the following terms: a set of practices of integration that regulates social
activities (human work) in a social system (organization) that it is both the process and the
result of elements that support and constrain its constitution.

Purpose: Organizational control is an important function because it helps identify

errors and deviation from standards so that corrective actions can be taken to achieve goals.
The purpose of organizational control is to ensure that a specific function is performed
according to established standards.

5 steps that involves in the organizational control in an organization:

This article throws light upon the five important steps involved in organizational control process.
The steps are:

1. Establishing Standards.

2. Determining Performance Measurements.

3. Measuring Performance.
4. Comparing Performance against Standards and Analyzing Deviations.

5. Taking Corrective Action.

Step # 1. Establishing Standards:

The first step in the control process is establishment of standards of performance. A standard is a
target against which subsequent performance is to be compared.

We know how important it is for the manager to set objectives that channel the efforts of the
entire organization. In fact, we have discussed in detail goal setting and management by
objectives (MBO). A standard is a measuring device, quantitative or qualitative, that is designed
to help monitor the performance of people, capital goods or processes.

For the purpose of control a standard is defined as a unit of measurement that can serve as a
reference point for evaluating results. Thus, in a broad sense, goals, objectives, quotas, and
performance targets will also serve as ‘standard’ in the control process. Some specific standards
are-sales quotas, budgets, job deadlines, market share and profit margins.

Step # 2. Determining Performance Measurements:

Selling standards hardly serves any purpose unless some steps are taken to measure actual
performance. While the first step in the control process establishes standard the second step asks
managers and others to measure the performance is in line with the set standards. In other words,
the second step in control is to determine the appropriate measurement of performance progress.

Step # 3. Measuring Performance:

The next step in the control process is increasing performance. In this context, performance
refers to that which we are attempting to control. The measurement of performance is a constant,
ongoing activity for most organizations and for control to be effective, relevant performance
measures must be valid.

When a manager is concerned with controlling sales, daily, weekly or monthly sales figures
represent actual performance. For a production manager, performance may be expressed in terms
of unit cost, quality or volume. For employees, performance may be measured in terms of quality
or quantity of output. Valid performance measurement, however difficult to obtain, is necessary

to maintain effective control.

Step # 4. Comparing Performance against Standards and Analyzing

Deviations:
A critical control step is comparing actual performance with planned performance. Facts about
performance above are relatively useful.

So, the fourth step in the control is to compare measured performance against the standards
developed in Step 1. Actual performance may be higher, lower or the same as the standard. The
key issue here is how much leeway is permissible before remedial action is taken.

For screening control systems, it is important that comparisons between performance and
standards be made frequently. The rationale for using screening control in the first place is to
enable managers to correct problems early in the transformation process before errors begin to
compound. Hence, sophisticated feedback systems may be necessary to provide promptly the
information management needs to make comparisons.

If managers possess clear, simple standards that outline the acceptable and unacceptable, they
can apply the standards to specific performances to be able to make a comparison between the
‘what is’ and the ‘what should be’.

If the comparison does not yield results or measurements that are acceptable standards, action
may be called for. Measurements have to be taken regularly in order to discover any deviations
as quickly as possible.

As an example consider a salesperson who repeatedly fulfills sales quota for a given territory. It
could imply superior talent. It could also mean an inaccurate quota: he would fulfill his normal
quota in half the time allowed.

Over-achievement may mean underutilization of manpower and such inappropriate use can result
in lost opportunities for the organization. So it is first of all necessary to determine the cause of
the deviation and take corrective action thereafter.
It is absolutely essential to analyze deviations to determine why the standard is not being met
when performance falls short of standard. It is really important decision making to identify the
real causes of performance problems rather than just the symptoms. Managers often make use of
staff assistance and third parties to aid them in analyzing deviations, especially in important
matters.

Step # 5. Taking Corrective Action, If Needed:

The final step in the control process is to evaluate performance (via the comparisons made in
Step 3) and then take appropriate action. This evaluation draws heavily on a manager’s analytic
and diagnostic skills.

Types of Organizational Controls

Control can focus on events before, during, or after a process. For example, a local automobile
dealer can focus on activities before, during, or after sales of new cars. Careful inspection of new
cars and cautious selection of sales employees are ways to ensure high quality or profitable sales
even before those sales take place. Monitoring how salespeople act with customers is a control
during the sales task. Counting the number of new cars sold during the month and telephoning
buyers about their satisfaction with sales transactions are controls after sales have occurred.
These types of controls are formally called feedforward, concurrent, and feedback, respectively.

 Feed forward controls: sometimes called preliminary or preventive controls, attempt to

identify and prevent deviations in the standards before they occur. Feed forward controls
focus on human, material, and financial resources within the organization. These controls
are evident in the selection and hiring of new employees. For example, organizations
attempt to improve the likelihood that employees will perform up to standards by
identifying the necessary job skills and by using tests and other screening devices to hire
people with those skills.
 Concurrent controls: monitor ongoing employee activity to ensure consistency with
quality standards. These controls rely on performance standards, rules, and regulations
for guiding employee tasks and behaviors. Their purpose is to ensure that work activities
produce the desired results. As an example, many manufacturing operations include
 devices that measure whether the items being produced meet quality standards.
Employees monitor the measurements; if they see that standards are not being met in
some area, they make a correction themselves or let a manager know that a problem is
occurring.
 Feedback controls: involve reviewing information to determine whether performance
meets established standards. For example, suppose that an organization establishes a goal
of increasing its profit by 12 percent next year. To ensure that this goal is reached, the
organization must monitor its profit on a monthly basis. After three months, if profit has
increased by 3 percent, management might assume that plans are going according to
schedule.