ESSENTIAL OF EFFECTIVE

OF CONTROL SYSTEM
Acceptable to Organisation Members

 Importance of setting standards that are acceptable to employees

 Dangers of unilateral standards set by upper level managers
 The need for participatively set, custom-fit performance standards for each person
 Recognition of status differences between individuals and the impact on the control
system
 Examples of control systems that may not be understandable to managers who must use
them.
Reveal Exceptions at Strategic Points

 Importance of revealing exceptions at strategic points in a control system

 Significance of small exceptions in certain areas over larger deviations in others
 The need to focus a manager's attention on the right areas
 The difference between strategic point control and the exception principle
 Guidelines for picking strategic points: ability to catch important deviations quickly,
practical and economi
Following are some guidelines in picking
these strategic points

a) They should be able to catch important deviations quickly.

b) They should be practical and economic.
c) They should provide controls over large blocks or activities
d) They should provide controls over large block or activities
e) They should be helpful in advancing knowledge
Motivating High Performance

 A control system should motivate people to high performance

 Successfully meeting a tough standard provides a greater sense of accomplishment
 People respond to challenge
 However, standards that are too difficult may discourage effort
 Balance is key in setting challenging yet achievable standards.
Should Not Lead to Less Attention to Other
Aspects

 Control systems should not neglect other aspects of operations.

 Pressure to increase output should not result in neglecting quality, equipment care, or
waste prevention.
 Overemphasis on controlling tangible results should not lead to neglecting intangible
results, such as employee development and cooperation with other departments.
 A well-designed control system should balance the need for control with attention to other
aspects of operations.
Periodic Review and Evaluation of Control
Systems

 Every control system should be periodically reviewed and evaluated

 The purpose is to determine how effective and efficient the system is in achieving its
objectives
 The review should identify areas of success and areas for improvement
 The evaluation should include an analysis of the reasons why the system succeeded or
failed