MENAGEMENT 12 th Edition Ricky W. Griffin Part 6 The Controlling Process Lecture 11 & Chapter 20 Basic Elements of Controlling Presented by Prof. Dr. Md. Alinoor Rahman Department of Management, IU.
Learning Objectives After studying this chapter, you should be able to: 1. Explain the Purpose of control, identify different types of control, and describe the steps in the control process. 2. Identify and explain the three forms of operations control. 3. Describe budgets and other tools for financial control. 4. Identify and distinguish between two opposing forms of structural control. 5. Discuss the relationship between strategy and control, including international strategic control. 6. Identify characteristics of effective control, why people resist control, and how managers can overcome this resistance.
The Nature of Control Control is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits. Without this regulation, organizations have no indication of how well they are performing in relation to their goals. Control helps organizations cope with changes and complexity. According to Heinz Weihrich and Harold Koontz, “Controlling is the management function of measuring and correcting individual and organizational performance to ensure that events conform to plans”. According to Ricky W. Griffin , “Controlling is the process of monitoring and correcting ongoing activities to facilitate goal attainment”. Controlling is the process of ensuring that actual activities conform to planned activities. Planning and controlling are closely related. In fact, controlling is more pervasive than planning. Controlling helps managers to monitor the effectiveness of their planning, organizing and leading activities. In fact, controlling determines what is being accomplished—that is, evaluating the performance and, if necessary, taking corrective measures so that the performance takes place according to plans. Controlling can also be viewed as detecting and correcting significant variations in the results obtained from planned activities.
Purposes of Control As Figure 20.1 illustrates, control provides an organization with ways to adapt to environmental change, to limit the accumulation of errors, to cope with organizational complexity, and to minimize costs. These four functions of control are worth a closer look. Figure 20.1 : Control is one of the four basic management functions in organizations. The control function, in turn, has four basic purposes. Properly designed control systems can fulfill each of these purposes. Adapt to environmental change Limit the accumulation of error Control helps the organization Cope with organizational complexity Minimize costs
1. Adapting to Environmental Change: In today’s complex and turbulent business environment, all organizations must contend with change. If managers could establish goals and achieve them instantaneously, control would not be needed.
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