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Organizational Control
The systematic process through which managers regulate organizational activities to
make them consistent with the pre-set expectations established in plan, target and
standard of performance.
What is Control: The systematic process through which managers regulate organizational
activities to make them consistent with the pre-set expectations established in plan, target
and standard of performance.
Basic Steps in the control Process
No
Establish
standards and
methods for
measuring
performance
Measure
performance
Does performance
match the
standards?
Take corrective
action and reevaluate standards
Yes
Do
Nothing
Organizational Control System
a. Feed-forward Control System: Focus on human, materials and financial resources those
flowing into the organization. e.g., hiring employees, selection of materials suppliers,
selection of creditors etc. Also known as preliminary or preventive control.
Purposes of Feed-forward control
Ensure, input quality is sufficiently high to prevent problems when the organization
does its work.
It is anticipatory and attempts to identify & prevent deviations before they occurs
b. Concurrent Control: Monitoring on-going employees and overall organizational activities
to ensure their consistency with established standard.
Purposes of concurrent control
Relies on performance standard including, rules & regulations for guiding employee
task & behaviors.
To ensure employee work activities produce the correct results.
c. Feedback Control: Focuses on the end product or services after the organizations task is
completed. Also known as post action or output control.
Corporate culture & control system
Bureaucratic Control: The strict use of written rules and regulations, policies, hierarchy
of authority, reward system, and other formal devices to influence employee behavior and
performance standard.
Elements of Bureaucratic performance
Pre-set rules & procedures by the organization
Management control system: Strategic plan, financial & budgetary control, MBO &
MIS control system.
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Hierarchy of authority
Selection & training of employees
Use of appropriate technology
Clan control System: Use of social values, traditions, common beliefs and trust to
generate compliance with organizational goals.
Elements of Clan control performance
Believing that employees are trusted and are willing to perform correctly without
extensive rules & supervision but following the culture of the organization.
Techniques of Clan control
Create a sound corporate culture
Develop per group
Establish self control mechanism
Careful selection of employees etc
Strategic Issues in Effective Control
Linked the plan & control system with the organizational strategy
Ensure that control system is accepted by the employees
Establish all ways communication system in the organization
Be flexible with environmental changes
Take action and timely etc
Control Points in organization
Multiple control system
Strategic control point
Strategic
control system
Different Types of strategic control system
Premise control (environmental monitoring)
Develop some promises (assumptions) based on the strategy made.
Keep monitoring all these assumptions whether there are or will be any changes of
those factors.
Strategic surveillance (environmental scanning)
Less forced and more flexible than premise control
Identify the critical events (eg, KISF or KSF etc) of the firm that can offer better
opportunities or threats for the firm.
This is designed to monitoring internal & external SWOT factors to ensure control
Implementation control deals with two issues:
Operational control: Whether or not firms strategic resources are being allocated
properly or being implemented as planned.
Strategic implementation control: Should the firms overall strategies are need to be
change in the situation of high unknown events or threats
Special alert control
Reconsideration of the firms strategy because of a sudden and un-expected environmental
events.
Strategic Issues in Effective Control
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Linked the plan & control system with the organizational strategy
Ensure that control system is accepted by the employees
Establish all ways communication system in the organization
Be flexible with environmental changes
Take action and timely etc
