Please help discuss the following topics.
- The importance of control
- Facts about controlling
- Budget as part of control system
In compliance with BrainMass rules, this is not a hand in ready paper but only guidance.
Control in the context of management is described. The main idea is that control is an important function of management. Several important facts relating to control are described. A budget and its importance in control Is described. A sample budget has been given. Finally, the advantages and disadvantages of a budget are presented.
The importance of managerial controls is given. The importance of control for efficiency, quality improvement, and decentralization of organization are discussed. The importance of control in managing and motivating employees is discussed. Further, the role of control in cost reduction is highlighted. Control plays an important role in keeping a business plan on track. The main facts about controlling are that it sets standards, requires monitoring, and takes corrective actions if there are deviations from the standards. Controlling helps define organizational goals, allocates responsibility for their execution, and ensures that the goals are executed in a timely manner. Control is applied to different levels of an organization. The quantitative expression of a plan is a budget. The main advantages of budgeting are that it helps monitoring and controlling operations, coordinates departments, and improves resource allocations. The main disadvantages are that budgets are inaccurate, they are rigid, and can be manipulated by experienced executives.
Importance of Controls:
Controls are important for efficient execution. They are required for an effective and efficient implementation for management plans. The controls assist in determining variations, identifying the cause responsible for them and taking corrective actions (1). Controls are essential to ensure that all important tasks take place in the right direction, at the right time and in the right place. This increases the efficiency of the firm. It is important to have control measures in place because they are required to identify deviations. This helps improve supervisions and keeps employees activities focused on the task at hand. The specific benefit of control is that it helps discover deviations and shows the factors that have caused the same (2). This has a positive effect on employees. It boosts their morale. For example, during the contraction of a factory shed if the laying of the foundation is delayed by three days, control measures bring this delay to the notice of the manager who can take steps to speed up the laying of the foundation. An important function of control is that it helps increase coordination between people, teams, and divisions. In large organizations, there are several divisions that produce parts of a product. There must be synchronization of their production to ensure ...
Advantages and disadvantages of managerial control systems, including a sample budget. The references related to the answer are also included. Attached as a Word document.