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1. Changing circumstances: If managers could establish goals and achieve them instantaneously, control would not be needed. But between the time when a goal is established and the time when it is reached, many things can happen in the organization and its environments to disrupt movement toward the goal or even change the goal itself. Therefore, a properly designed control system can help managers anticipate, monitor and respond to changing circumstances. In general, the longer the time horizon of organizational goals, the more important it is to have adequate control.
2. Compounding of errors: Often, small mistakes and errors do not seriously damage the health of an organization. With the passage of time, however, small errors may accumulate and become very serious. Control can help managers catch errors before they compound (multiply).
3. Organizational complexity: When a firm purchases only one raw material, produces only one product, has a simple structure and enjoys constant demand for its product, its manager can probably maintain control with a note pad and a pencil. But in an organization that produces many products, from a myriad of raw materials, has a large market area, a complicated organizational structure and operates in a competitive environment; it is difficult – if not impossible – to maintain adequate control without an elaborate control system.
Titany answered the question on September 20, 2021 at 13:08
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