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a) Five elements of a control system
1. I . Establishment of standards: Every enterprise plans its activities in advance. On the
basis of plans, the objectives of every department are fixed. These goals are converted
into quantity, man-hour value etc. There may also be qualitative goals.
2. Measurement of performance: The second step in the controlling process is the
measurement of performance. The measurement of quantitative objective is easy since
figures of work done will be available. The qualitative performance such as human
relations, employee morale, etc, can only be measured through psychological tests and
surveys.
3. Comparing actual and standard performance: The next step in the control process is the
comparison of actual performance with the standards set.
4. Identify causes of deviations in (3) above
5. Taking corrective actions: The last but most important step in the controlling process is,
taking corrective action. Whenever the performance is less than the standards, efforts
should be made to rectify it. The control action may involve review of plans and goals,
change in the methods of work, change in the assignment of task, change in the existing
techniques of direction and change in the organisation structure.
b) Five characteristics of an effective control system
• Clear-cut purpose
The task of control is to ensure that plans succeed by detecting deviations from plans and
furnishing a basis for taking action to correct potential or actual undesired deviations.
• Future-oriented
Owing to the time lags in the total system of control, the more a control system is based on feed
forward rather than simple feedback of information, the more managers have the opportunity to
perceive undesirable deviations from plans before they occur and to take action in time to
prevent them.
• Control responsibility
The primary responsibility for the exercise of control rests in the manager charged with the
performance of the particular plans involved. Since delegation of authority, assignment of tasks,
and responsibility for certain objectives rest in individual managers, it follows that control over
this work should be exercised by each of these managers. An individual manager's responsibility
cannot be waived or rescinded Without changes in the organization structure.
• Cost Benefits
Control techniques and approaches are efficient if they detect and illuminate the nature and
causes of deviations from plans with a minimum of costs or other unsought consequences.
Control techniques have a way of becoming costly, complex and burdensome. Managers may
become so engrossed in control that they spend more than it is worth to detect a deviation.
• Preventive nature
Focus should be more on prevention rather than the correction of the negative aspects of the
system.
• Standardized
Effective control requires objective, accurate, and suitable standards. There should be a simple,
specific and verifiable way to measure whether a planning program is being accomplished.
• Flexible
If controls are to remain effective despite failure or unforeseen changes of plans, flexibility is
required in their design.
• Exceptional
The more that managers concentrate control efforts on significant exceptions, the more efficient
will be the results of their control.
Kavungya answered the question on May 18, 2019 at 08:03
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