Tuesday, November 30, 2010

Dynamics of Organizational Control

The events and changes being experienced world over in every facet of human existence have been reported to come with enormous and varying degrees of complexities, uncertainties and challenges in which managers and leaders of our world have had to evolve and develop new paradigms, styles and approaches to the management of people, processes, systems, organizations and nations.

In today’s business and management environment, organizational resources are disappearing, competition is escalating, and value-demand is skyrocketing.

This development has therefore led to organizations being more and more determined in being vision-focused, goal-oriented and performance-driven and the concepts of planning, organizing, leading and controlling has taken more strategic dimensions.

Of great importance is now the need for tasks to be clearly defined and assigned and performance standards set for expected results so that organizational objectives can be realized. This role rests on the shoulders of managers and a tool for achieving this is an effective control system or procedure.

WHAT IS CONTROLLING?

Controlling, as defined by the Longman Active Study Dictionary is ‘the ability to decide what will happen in an organization or place’. It is also said to be ‘the ability to make someone or something do what you want, or make them work in a particular way’

Controlling, as it relates to management is a part, and the last of the four cardinal functions a manager is supposed to perform in an organization. A manager is expected to plan, organize, lead/direct and control.

Controlling is the process through which standards for performance of people, processes, systems and structures are set, communicated, and applied. It involves measuring and correcting individual and organizational performance to ensure that events conform to plans. It is to ensure that deviations are put in check, below-standard results are stepped-up to expected performance level and processes that lead to the attainment of plans and objectives are reinforced and improved-upon.

There are different types of control. Time, budget, equipment, cost, quality management, materials and operations could all be controlled and there could also be systems put in place within organizations to check and synchronize these different types of control.

Control systems are usually designed by (strategic) managers especially after due consideration has been given to factors internal and external to the organization. The main goal of control systems however, is to align organizational resources (people, process, capabilities, assets etc) towards achieving the objectives of the organization.


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Culled from my write-ups as a Management Strategist.

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