Discuss whether you need any control when every thing going as planned. Design a control system for controlling the p[performance of your own subordinates, keeping in view the characteristics of effective controls. Examinee the control methods and strategies used in your organization or any organization you are familiar with. Briefly describe the organization you are referring to.
Ans: All organizations, Business or non-business, face the recently of coping with problems of control. Like other managerial functions, the need for control arises to maximize the use of scarce resources and to achieve purposeful behavior of organization members. In the planning stage, managers decide how the resources would be utilizes to achieve organizational objectives, at the controlling stage, managers try to visurlise whether resources are utilized in the same way as planned. This control completes take whole sequence of management process.
The control system is used for measuring performance of subordinates. The measurement of performance against standards should be on a future basis, so that deviations may be detected in advance of their actual occurrence and avoided by appropriate actions, appraisal of achirl or expected performance becomes an easy task, if standards are properly determined and methods of measuring performance which can be expressed in physical and momentary terms, such as production units, profits etc. can be easily and precisely measurable
Methods
1. Control over policies: Policies are formulated to govern the behavior and action of personnel in the organization. These may be written or otherwise policies are generally controlled through policy manuals which are generally prepared to Top management. Each Individual in the organization is expected to function according to policy manuals.
2. Control over organization: Organization charts and manuals are used to keep control over organization structure organization manuals attempts at solving organizational problems and conflicts, making long-range organizational planning possible, enabling rationalization of the organization structure, helping in proper designing and clarification of each part of the organization, and conducting periodic check of facts about organizational practice.
3. Control over Personnel: Generally, Personnel manager or head of the personnel department, whatever his designation may be, keeps control over personnel in the organization. Sometimes, a personnel committee is constructed to act as an instrument of control over key personnel.
4. Control an wages and salaries: Control over wages and Salaries is done by having programme of job evaluation and wage and salary analysis. The functions are carried on by personnel and Industrial engineering departments. Often wage and salary committee is constituted to provide help to these departments.
5.Control Over Cost : Control over costs is exercised through making comparison between standard costs and actual costs.
6.Control Over Capital Expenditure: Control over capital expenditure is exercised through the system of evaluation of projects, ranking of projects on the basis of their importance, generally on the basis of their earning capacity. A capital budget is prepared for the Business as a whole. The Budget is reviewed by the budget committee or appropriation committee for effective control over capital Expenditure (and to make) there should be a plan to identify the realization of benefits from capital expenditure and to make comparison with anticipated results. Such comparison is important in the sense that it serves as an important guide for future capital budgeting activities
7. Control over Research and Development: Control over research and development is exercised in two ways: by providing a Budget for research and development and by evaluating each Project Keeping in view savings, sales or profit potentialities. Research and development being a highly technical activity is also controlled frdinectly. This is done by improving the ability and judgment of the research staff through training programmes and other devices.
Strategies of Control
(1)Personal Centralized Control
(i) Centralized decision-making
(ii) Direct Supervision
(iii) Reward and punishment reinforce conformity to personal, authority
(11)Bureaucratic Control:
(i) Breaking doe3m of tasks in to easily definable elements.
(ii) Formally specified methods, procedure and rules applied to the
conduct of tasks
(iii) Budgetary and financial standard cost-variance accounting controls.
(iv) Reward and punishment systems reinforce uniformity to procedures & rules.
(3)Output Control:
(i) Jobs and units designed to be responsible for complete outputs
(ii) Specification of output standards and targets.
(iii) Use of ‘responsibility accounting’ systems.
(iv) Delegation of decisions on operational matters: semi auto nary.
(v) Reward and punishment systems reinforce conformity to produces and Rules.
(4)Cultural Control:
(i) Development of strong identification with management goals.
(ii) Semi-autonomous workings sew formal controls
(iii) Strong emphasis on selection, training and development of personal.
(iv) Reward oriented towards security of tenure and corer progression.
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