1. Explain the following statement: "Everything managers do relates to control." Use examples to validate your points.
2. What control tools do managers use in a financial organization? How effective are the controls?
3. What additional control tools would you like to see managers use in a financial organization and why?
4. How has the financial organization used empowerment to increase the managers' span of control? How effective has the empowerment process been? What controls has a financial organization implemented to make sure employees stay within the empowerment guidelines?
5. What could be done by the management of a financial organization to remove the stigma from the word "control"?
1. Control is the process of ensuring that a firm's activities conform to its plans and that its objectives are achieved." Hence each of the activities like planning, organizing and staffing are associated with the control. Control is the "final link in the management functions" (Robbins & Coulter, 2005, p. 459) and in which planning can occur throughout the organization. We have to understand that the management control system is the process of influencing human behavior in order to implement the strategy of the organization. Controlling is much broad then the monitoring. It involves laying down the standard, using the techniques to influence the human behaviour to achieve the standards. After it the performance is measurement and corrective action is taken. Thus laying down standards involves planning. Moreover planning is brought in action by structure and people to deliver the performance. Controlling will help in comparing the actual performance with the standards laid down and taking the corrective action. Thus there will be changes in structure, people and other related activities in order to meet the standards. Hence controlling impact all the functions of the management.
2. Strategic control is concerned with the monitoring progress in accomplishing the strategic goals of the organization. It is very critical to any organization, because without it the results could be chaotic. Organization has to improve their operational performance by proper evaluation and control mechanisms.
Strategic control system will be designed to support managers in evaluating the organization's progress regarding its strategy and when discrepancies exit, taking corrective action. The dual responsibilities of the control system are efficiency and flexibility. As control mechanisms and/or tools assist in increasing communication, empowering the workforce, and attaining the goals set forth by helping management in the company evaluate and compare the performance of the company and/or employee over a specified time period to standards that have been preset, benchmarks and desired targets. They will help them adhere to their strategic plan and quickly and efficiently and correct any variations or errors that have occurred. It should ensure ethical conduct by business. All business records, accounts and reports to government agencies and others should be prepared with care and honesty. All company funds, assets and liabilities should be recorded in accordance ...
This response looks at managerial control, methods to implement control, and the empowerment process.