Organizational Control Systems
Organizational control refers to the control process component of the management functions of planning, organizing, leading and controlling. Planning comprises all the activities associated with the formulation of strategy, including the establishment of goals and objectives. Organizing and leading are the choices made about how the people work together and are motivated to achieve individual and group goals and objectives. Organizational control typically involves the following steps:
Organizational control is the process by which an organization influences its sub-units and members to behave in ways that lead to the attainment of organizational goals and objectives. Organizational control includes:
Organizational Control is the process by which managers and leaders of an organization assure the company's actual performance conforms to the organization's plans. More broadly, controls can be defined as anything that regulates the processes or activities of an organization. It involves creating rules, procedures, or best practices for an individual or department in an organization.
Type s of Controls
In management there are varying levels of control. The levels of control may include: strategic control, operational control and tactical control. Strategic control always comes first, followed by operations then tactics. These controls help managers at various levels make better and informed decisions. Controls make plans effective and the organization efficient.
Strategic control is related to that aspect of strategic management through which an organization ensures whether it is achieving its objectives contemplated in the strategic action. If not, what corrective actions are required for strategic effectiveness.
Operational control is related to aspects of operations management through which an organization ensures proper execution of its strategy. Where operational controls are imposed, they function within the framework established by the strategy Normally, these goals, objectives, and standards are established for major subsystems within the organization, such as business units, projects, products, functions, and responsibility centers (Mattews, 1999). Typically, operational control measures include return on investment (ROI), net profit, cost, and product quality. These control measures are essentially summations of finer-grained control measures. Corrective actions based on operating controls may have implications fir strategic controls when they involve changes in the strategy.
Tactical control emphasizes the current operations of an organization. Managers determine what the various parts of the organization must do (tactics) for the organization to be successful in the near future. A tactic is a method that meets a specific objective of an overall plan.
Organizational Control System
Organizational control systems allow executives and managers to track how well the organization is performing, identify areas of concern, and then take address the concerns. Organizational control systems can be viewed as a managerial tool. To successfully control an organization, managers need to not only know what the performance standards are, but also figure out how to share that information with employees. Three (3) basic types of control systems available to executives, these include:
Different organizations emphasize different types of control, but most organizations use a mix of all three controls. Organizational control systems are a vital part of executive strategic management because they track performance and identify adjustments that need to be made. Output controls involve measurable results. Behavior control involve regulating activities rather than outcomes. Clan control relies on a set of shared values, expectations, traditions, and norms.
Organizational control refers to the control process component of the management functions of planning, organizing, leading and controlling. Planning comprises all the activities associated with the formulation of strategy, including the establishment of goals and objectives. Organizing and leading are the choices made about how the people work together and are motivated to achieve individual and group goals and objectives. Organizational control typically involves the following steps:
- establishing standards,
- measuring performance,
- comparing performance to standards, and
- taking corrective action, if needed.
Organizational control is the process by which an organization influences its sub-units and members to behave in ways that lead to the attainment of organizational goals and objectives. Organizational control includes:
- Assigning, evaluating, and regulating resources on an ongoing basis to accomplish as organization's goal. ..
- Developing rules, guidelines, procedures, limits, or other protocols for directing the work and processes of employees and departments.
Organizational Control is the process by which managers and leaders of an organization assure the company's actual performance conforms to the organization's plans. More broadly, controls can be defined as anything that regulates the processes or activities of an organization. It involves creating rules, procedures, or best practices for an individual or department in an organization.
Type s of Controls
In management there are varying levels of control. The levels of control may include: strategic control, operational control and tactical control. Strategic control always comes first, followed by operations then tactics. These controls help managers at various levels make better and informed decisions. Controls make plans effective and the organization efficient.
Strategic control is related to that aspect of strategic management through which an organization ensures whether it is achieving its objectives contemplated in the strategic action. If not, what corrective actions are required for strategic effectiveness.
Operational control is related to aspects of operations management through which an organization ensures proper execution of its strategy. Where operational controls are imposed, they function within the framework established by the strategy Normally, these goals, objectives, and standards are established for major subsystems within the organization, such as business units, projects, products, functions, and responsibility centers (Mattews, 1999). Typically, operational control measures include return on investment (ROI), net profit, cost, and product quality. These control measures are essentially summations of finer-grained control measures. Corrective actions based on operating controls may have implications fir strategic controls when they involve changes in the strategy.
Tactical control emphasizes the current operations of an organization. Managers determine what the various parts of the organization must do (tactics) for the organization to be successful in the near future. A tactic is a method that meets a specific objective of an overall plan.
Organizational Control System
Organizational control systems allow executives and managers to track how well the organization is performing, identify areas of concern, and then take address the concerns. Organizational control systems can be viewed as a managerial tool. To successfully control an organization, managers need to not only know what the performance standards are, but also figure out how to share that information with employees. Three (3) basic types of control systems available to executives, these include:
- Output Control - Output controls are a form of objective control that focuses is on measurable results (outputs/outcomes) within the organization. Output controls emphasize "bottom-line" performance. Outcome controls assess measurable production and other tangible results.In output control systems, managers forecast performance goals for each unit and employee. They measure the actual performance of the units and employees, and Lastly compare the actual performance against the goals already set for them. When the performance of employees or units is linked to the reward system, the output control itself provides an incentive structure for employee motivation in the organization.
- Behavioral Control - Behavioral controls dictate the actions of individuals; such controls often emphasize rules and procedures. Behavioral control focuses on controlling the actions of individuals that ultimately lead to results. In particular, various rules and procedures are used to standardize or dictate behavior. Some behavior control is needed within virtually all organizations to ensure a productive work environment for all employees. A behavior control system refers to a comprehensive system of rules and procedures. These are prescribed to direct the behavior/actions of employees at each level of the organization. Rules and procedures standardize the way of reaching the goals. Two forms of behavior control are; operating budgets and standardization of inputs, conversion activities (programming work activities so that they are done the same way time and again), and outputs. Creating an effective reward structure is key to effectively managing behavior because people tend to focus their efforts on the rewarded behaviors.
- Clan Control - Clan control is an informal type of organizational control. Instead of measuring results (as in output/outcomes controls), or dictating behavior (as in behavioral control), clan control relies on shared traditions, values, expectations, and norms to lead people to work toward the goal of their organization. Clan control is used heavily in settings where creativity is vital.
Different organizations emphasize different types of control, but most organizations use a mix of all three controls. Organizational control systems are a vital part of executive strategic management because they track performance and identify adjustments that need to be made. Output controls involve measurable results. Behavior control involve regulating activities rather than outcomes. Clan control relies on a set of shared values, expectations, traditions, and norms.