Criteria for effective control
Briefly discuss the criteria for effective control. There are five criteria for effective control. In designing a control system, one must make sure that it measures what is important now and what is important in the future, not what is important in the past. Firstly, the systems must be related to organizational strategy. In designing a control system, one must make sure that it measures what is important now and what is important in the future, not what is important in the past.
Multinational corporations often find it useful to maintain a entralized, integrated system of controls consistent with the strategic orientation of the organization. For example, General Motor maintains a number of units that are interdependent through each of the sequential steps in the manufacturing process, therefore, General Motor must have control systems that ensure that production processes are not disrupted. Secondly, use all steps in the control process.
To be effective, a control system must employ all steps in the control process. Standards of performance must be set, measurements of actual performance taken, comparisons f standards with actual performance made, and when necessary, corrective action taken. For example, in our life, for a grade A in our management course, suppose we never bothered to check our posted grade on the midterm exam. In this case, our control system would be incomplete. Without knowing our midterm exam score, we would not compare our performance with our standard.
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Thirdly, be composed of objective and subjective measures. Effective control systems typically require managers to blend quantitative (objective) and qualitative (subjective) performance easures. For example, management may have set specific targets for productivity. This performance goal has a precise formula for measurement. In the same situation, management has also expressed a desire to achieve high levels of worker satisfaction. Forth, be timely in feedback reporting.
Timeliness is the degree to which the control systems provides information when it is needed. The issue here is not how fast the feedback information is provided but whether it is provided quickly enough to permit a response to an unacceptable deviation. For example, the U. S. naval accident that occurred in early 2005 present the importance of timeliness itself. The crew of the nuclear submarine USS San Francisco violated the feedback timeliness requirement with near-catastrophic consequences.
In short, the submarine smashed into an undersea mountain. A subsequent naval investigation reveal the crew should have checked the water depth more frequently, should not have been traveling at high speed, and failed to take into account a variety of danger signs, all of which contributed to the underwater accident. Last but not least, be cceptable to a diverse workforce. To be effective, organizational controls must be accepted by employees.
The control system should motivate workers to recognize standards and act to achieve them. For example, as a student in a management course. Suppose our professor has no problem assigning course grade B or lower but says that a grade of A can be achieved only by students who read a new chapter and five related Journal articles everyday and submit a 20-page, typewritten synopsis of these readings each day. Would we be discouraged from attempting to earn a grade
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