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Managing the Control Process

Introduction to Management
Kirana Mulyacantika
Iftor Fabrian
Alifiarosa Astari R
Ardhya Prili Hapsari
Mary Amela Audya

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• Control is The regulation of organizational activities in such a way as to facilitate goal attainment. with a view to ensure adequate progress and satisfactory performance. • Management control refers to the process by which an organization influences its subunits and members to behave in ways that lead to the attainment of organizational objectives .The Nature of Control • According to EFL Brech: Control is checking current performance against predetermined standards contained in the plans.

has four basic purposes. The control function. in turn.The Purpose of Control • Control is one of the four basic management functions. Adapt to environmental change Limit the accumulation of error Control helps the organization Cope with organizational complexity Minimize costs .

Types of Controls • Areas of Control ▫ Physical resources ▫ Human resources ▫ Information resources ▫ Financial resources Strategic control Structural control • Levels of Control • Responsibilities for Control ▫ Manager ▫ Controller ▫ Operating Employees Operations control Financial control .

Steps in the Control Process 1 2 Establish Measure standards performance Compare 3 4 Determine need performance against standards for corrective action Maintain the Correct the Change status quo deviation standards .

Forms of Operations Control Feedback Inputs Transformation Outputs Preliminary control Screening control Postaction control Focuses on inputs Focuses on how Focuses on outputs to the organizational inputs are being from the organiza- system transformed into tional system outputs .

 Budgets are typically for one year or less.Financial Control • Control of financial resources as they flow into the organization.  Budgets may be expressed in financial terms. and flow out of the organization. are held by the organization. • Budgetary Control  Budgets may be established at any organizational level. units of output. • Types of Budgets  Financial Budget  Operating Budget  Nonmonetary Budget . or other quantifiable factors.

• Developing Budgets in Organization Operating unit budget requests Division budget requests Organizational budget • Prepared by budget committee • Approved by budget committee. and CEO . controller.

formal controls. self-control Directed toward enhanced performance above and beyond the minimum Flat structure. rigid hierarchy Directed toward minimum levels of acceptable performance Tall structure. shared influence Directed at group performance Extended and informal . top-down influence Directed at individual performance Limited and formal Dimension Goal of control approach Degree of formality Performance expectations Organization design Reward system Participation Clan Control Employee commitment Group norms. culture.Structural Control • Organizational Control Bureaucratic Control Employee compliance Strict rules.

leadership. . whereas decentralization fosters adaptability and innovation.  Centralization creates more control and coordination. • International Strategic Control  Focuses on whether to manage the global organization from a centralized or decentralized perspective.Strategic Control • Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic plan. and informational and operational systems. • Focuses on structure. human resources. technology. • Focuses on the extent to which an implemented strategy achieves the organization’s goals.

Managing Control in Organizations • Characteristics of Effective Control ▫ ▫ ▫ ▫ ▫ Integration with Planning Flexibility Accuracy Timeliness Objectivity • Resistance to Control ▫ ▫ ▫ ▫ Over control Inappropriate Focus Rewards for Inefficiency Too much accountability .