Chapter 12 » Essentials of effective Control | Business Studies – XII




Essentials of effective control

1. Suitability– the control system should be appropriate to the nature and needs of various activities to serve the specific area or department of the organization

2. Timely and forward looking– control system in the management of the organization should be used to evaluate the deviations timely and take corrective measures in time.

3. Simplicity– effective control system should be very simple and easy to understand by the concerned manager and subordinates.

4. Economy– the controlling system should be very economic and less costly. The benefits should be more than that of actual expenditure related to the common goal

5. Objectives– the control system should be objective in order to specify the expected result in definite terms in terms of personal likes and dislikes of manager, subordinates and other information users etc.

6. Flexibility– every organization operates business in a dynamic environment. Controlling system should ne flexible so that it could be adjusted in every environment

7. Focus on strategic plans– controlling system should focus on critical areas where deviations from standards are most likely to occur and they cause loss and damage. So controlling system should concentrate on those areas where corrective action can be applied effectively

8. Coordinates with organizational workflow– the information to be used for the control must be coordinated with the organizational work flow for two main reason:

a.       Each step in the workflow may affect the entire authority

b.      Control information must reach every one who needs it.

9. Prescriptive and operational– control system should be prescriptive and operational. And if it does not prescribe remedies and help for smooth operation, it is not useful.