Types of organisational controls
Types of organisational controls
Controls are the business processes required to ensure the optimum utilisation of organisational strengths to gain competitive advantages over the competitors. The organisation has to know the status of its every organisational function and should formulate control measures, and evaluate them continuously.
There are a lot of things that should be controlled and managed to achieve the desired results. The control procedures generally consider the following things.
- Understanding objectives and characteristics of the system which have to implement in an organisation.
- A strategy for manage and monitor the characteristics of the system.
- It provides the facility to compare the results with stated standards, identify the deviations and establish measure procedure.
- A mechanism for feeding back corrective and adaptive information and instruction to the system and set right the system to keep it on course.
The followings are the controls that an organisation uses to manage the whole organisation to achieve its business goal.
Operational Control:
This focuses on managing individual works or transactions that are to be executed in different parts of an organisation.
A set of standards, plans and instructions are formulated and control measures are established. The control activity consists of regulating the processes regardless the effects of external conditions on the formulated standards, plans and instructions.
Some of the examples of operational controls can be stock control, production control, quality control, cost control, budgetary control and so on.
Management Control:
Management control is primarily focused on activities of a complete department, division or even entire organisation rather than only limited to the activities of sub-units.
The main reason behind management control is to facilitate the smooth operation in an organisation and to achieve the business goals. Management controls are necessary to influence the behaviour of events and ensure that they conform to plans.
Strategic control:
Strategies once formulated are not immediately implemented. There is a time gap between the stages of strategy formulation and their implementation. Strategies are often affected on account of changes in internal and external environments of organisations
Strategic control is the core of the management process and it is one of the primary functions of the management. In addition, it is a top-level management function which ensures smooth flow of operation within an organisation.
To be precise, it is a business process that leads an organisation towards the way of predetermined organisational goals.
Control is intended to regulate and check structure and condition, the behaviour of events and people, norms and standards, measure progress established to keep the system on track.
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