What is a Control System in Business?
“It is not only the top managers who should understand control but the junior managers should also be clear about them. The managers may devise certain mathematical formulas or statistical charts for finding out deviation in performance. ”
In the absence of control a business cannot survive for long. The plans of a particular business are properly realized by control mechanisms in addition to various other factors. There is no universal control system, which fits in every organization. The environment and requirements of every enterprise are different and each control system has certain essential features.The control should be such that it is easily understood by the managers and as well as by the subordinates. If the managers are not clear about the controls, they will not be effectively exercised. On the other hand, subordinates must know the type of control they will be subjected to.
It is not only the top managers who should understand control but the junior managers should also be clear about them. The managers may devise certain mathematical formulas or statistical charts for finding out deviation in performance. The control tools should be such as are suitable to organizational needs.
There are a number of control techniques like budget, statistical charts, PERT, CPM, etc, but these may not be used in every type of organization. The best control is that which is properly used in an organization and is able to give results.
The control system should be such that deviations in performance are reported quickly. A manager cannot control the past but deviations are determined only when actual figures are reported to him. The need is to know at the earliest whether the performance is satisfactory or not. If it is not up to the mark then immediate steps are needed to avoid further loss.
The units using electronic data processing devises are comparatively better placed in exercising control systems because the data is reported quickly. The control must be such which should help the enterprise to achieve its objectives.
The controls are different for various departments and sections. The controls for marketing department are different for those used by manufacturing department. Even at different levels of management the controls vary.
The chief executives have different controls to assess the work of their subordinates. A large business organization is bound to have a complicated and involved control system than a small one.
Author - DeeKay
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