In the olden days, the most important control in

the organization used to be the accounting

related control. In the present day environment,
control is a broader concept than the cost
accounting. The present day organization
interacts and communicates with a wide range of
different stakeholders. For many of them, the
accounting oriented control is neither the only,
nor the most important type of control. This is
particularly true for those organizations which
adopt the modern management practices which
are based mainly on innovations, for adapting the
changes which take place in the environment in
which the organizations function.
Control in an organization is a process by which
the organization strives to achieve the planned or
desired results, or 'performance'. It is the method
for managing the organizational performance. In
doing so, the organization takes various actions
to minimize the negative effects arising from the
external and internal environments. The control
helps the organizational management to
formulate key strategic objectives and plans and
monitor their executions. In general, it is the
process which is internal to the organization too
suit the specific needs of the organization and is
not subjected to any generally accepted
standards. The techniques and tools used for the
control are also internal to the organization.

Control ensures that there is effective and

efficient utilization of organizational resources so
as to achieve the organizational goal and
objectives. Control has two basic purposes
namely () to facilitate coordination, and (i) to
help in planning. A good control system provides
timely information to the management which is
very much useful for taking various actions for
the efficient operation of the organizational
processes.
Control in the organization comprises the
specification of organizational standards for
aligning the actions of the employees with the
goal and objectives of the organization, as well as
the monitoring and rewarding of the extent to
which such standards are met. Control practices
can consist of varying combinations of formal
and informal controls. Formal controls rely on
officially documented regulations and are
frequently implemented by the management,
whereas informal controls are based on norms
and frequently enacted by peers. In addition, there
are different control targets. For example
outcome controls are focused on attaining goals
and results, process controls are concerned with
compliance with procedures, and normative
controls are targeted toward value congruence
among the employees. The aim of control
practices is normally to ensure that employees
are provided with information on relevant
performance standards, to correct deviant
behaviour, and to stimulate effective
performance.