The function of the control and its importance. Areas of control

Organizations need controls in order to determine if their goals are being met and to take corrective action if necessary. Control is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits.

The Purpose of Control.

Control provides an organization with ways to:

Adapting to environmental change:

A control system can to anticipate, monitor, and respond to changing environmental conditions.

Limiting the accumulation of error:

A control system will limit the number of errors that can accumulate discovery and problem solution.

Coping with organizational complexity:

A factor increasing dramatically over recent times.

Minimizing costs:

If it is practiced effectively, control can help reduce costs and increase output.

Areas of control:

The four basic organizational resources usually define the areas of control.

Physical resources:

Control includes inventory management, quality control and equipment control.

Human resources:

Control includes selection and placement, training and development, performance appraisal and compensation.

Information resources:

Control includes sales/marketing forecasting, environmental analysis, public relations, production scheduling and economic forecasting.

Financial resources:

Control involves managing the organizations debt, cash flow and receivables/payables. Control of financial resources may be the most important control of all.

Establishing standards in the organization: types of standards and stages of managing.