LDP 601 Foundamental of Managenemt
EFFICIENCY
Efficiency can also be described by performing in the best possible way with the least resources,
time and effort. Efficiency would be about achieving a purpose by producing an intended result.
EFFECTIVENESS
Effectiveness is more about the long-term strategy and the goals, while efficiency is about the
process.
CONTROL
Control is a function of management which helps to check errors in order to take corrective
actions. This is done to minimize deviation from standards and ensure that the stated goals of the
organization are achieved in a desired manner.
There is need for any organization to have control systems so that it efficiently and efficiently
achieves its goals. Any organization that does not have any control systems is destined for
failure.
To ensure maximum efficiency and effectiveness an organization should have the following
management control strategies.
1. OPERATIONS CONTROL/OUTPUT CONTROL
In this type of control managers are tasked with assigning employees with targets for a period of
time after which they review the performance and appraise the employee. If the targets have been
met the manager can offer incentives to the employee such as bonuses. For the employees who
did not meet the targets the manager will have a sit with them and find out why they did not
achieve the set target and offer training to get the required skills. This control method ensures
efficiency and effectiveness for each stage such that if there is a problem it is detected and
addressed early enough before the whole process is affected. A common operations control tool
is the key performance indicators. (KPI)
Example
Restaurant X got serious complaints about poor services from employees to the client. The
manager decided to come up with a customer complain box to know who specifically was
offering poor services to the client. After a very short period of time the manager was able to
find out that Susan, a waitress in the restaurant, was the one offering the poor service. The
manager took an operation control and decided to fire Susan. He advertised the position and
ensured that the next employee who was hired was trained on customer service.
2. Financial control
Financial control systems are used to measure finances going out of an organization and those
coming in. Such control measures the profitability, growth and return to shareholders. An
organization should establish financial goals and then measure the actual achievements of the
goals. The most popular tools of financial controls are budgetary control, financial statements,
ratio analysis, and financial audits. Managers may develop budgets for the entire organization, or
even for the individual departments and divisions. They use the budgets for measuring
performance. Through financial control, an organisation is able to achieve Efficiency and
effectiveness.
Example
The managers in a clothing company prepares a budget every year for their departments. They
try to utilize the funds allocated to them for the intended purpose. They conduct audits to find out
if the funds are being utilized in the right way. If they find any misuse they take corrective
measures immediately. Budget and audits ensure that the goals of the company are met and
growth (profitability) is achieved.
3. OUTCOME AND BEHAVIOR CONTROL
A behavior control system focuses on controlling the actions that ultimately lead to result, in
particular various rules and procedures. These are prescribed to direct the behavior/actions of
employees at each level of the organization. Rules and procedures standardize the way of
reaching the goals. Some common behavior control tools include the code of conduct. It involves
the direct evaluation of managerial and employee decision making not of the results of
managerial decision. If employees follow rules and regulations set by an organization, it leads to
smooth flow of activities which in return leads to efficiency and effectiveness.
Example
In an organization where employees were wasting a lot of time on their phone and their output
was greatly affected, a manager decided to use a behavioral control when new set of rules were
put that one is only allowed to use their phone during the lunch break or in a case of an
emergency.
4. STRUCTURAL CONTROL
All organizations have a structure to them, some can be very bureaucratic with lots of layers of
management while others can be completely flat with few levels of management. Structural
control addresses how well an organization's structural elements serve their intended purpose.
Two basic forms of structural control are bureaucratic control is an approach to organization
design characterized by formal and mechanistic structural arrangements and clan control, it relies
heavily on group norms and a strong corporate culture, and gives employees the responsibility
for controlling themselves. Bureaucratic control is relatively formal and mechanistic, whereas
clan control is informal and organic. If each element of the structure of the organization serves
its purpose well it translates to efficiency and effectiveness.
Example
Organization X which had different level of management from the Managerial director to Head
of departments to middle level managers and junior managers and they each identified the
problems early enough so they were able to come up with solutions and thus achieve the goals of
the company thus ensuring efficiency and effectiveness.
5. STRATEGIC CONTROL
Strategic control specifically aims at ensuring that the organization is maintaining an effective
alignment with its environment and moving toward achieving its strategic goals. It focuses on
some aspects of an organization such as:
Leadership
Technology
Human resource
Information
Example
A car company must have a strategic control measures which looks into the future. They should
have a human resource in place which will hire people with the right qualifications e.g. engineers
who are aware of new technologies (technologic tools or machines) and accept information/
feedback from clients. This way efficiency and effectiveness is achieved.
CONCLUSION
No organisation can look away just by putting a well-thought-out strategy in place. They have to
evolve with the changes and react to them, if and when necessary. The various types of control
are crucial to offering solutions related to the goals of an organization or plans to implement.
Managers must be familiar with most of, if not all of the control systems and other methods of
problem-solving. This way, organisations will be able to run efficiently and effectively in pursue
of their goals.
REFERENCES
1. https://harappa.education/harappa-diaries/types-of-strategic-control
2. https://rgandersen.wordpress.com/controlling/structural-control/
3. https://www.iedunote.com/strategic-control
4. https://www.clearpointstrategy.com/strategic-control-process/
5.
