Chapter 21
Control
The regulatory task of management that determines whether or not there has been a deviation in
the organisational plans so that steps can be taken to prevent and/or rectify errors or deviations from
the plans.
The Importance of Control
1. Control ensures that all activities at all levels of the organisation are in accordance with the
organisation’s overall objective
2. Control ensures that the organisation’s resources are deployed in such a way that it attains
its objectives
3. Control results in better quality and enables management to cope with environmental
change and uncertainty.
4. Complex organisations need control measures to ensure that costly mistakes are avoided.
5. In order to compete, organisations need to be tightly run, and control is therefore necessary.
6. Control facilitates delegation and team work.
The Control Process
A process followed by management to ensure that the organisation’s goals and objectives are
realised or that actual performance ties in with predetermine standards.
Steps in the control process:
1. Step 1: Control standard – a target against which subsequent performance will be compared
Criteria of control standards:
o Be expressed in measurable terms
o Be consistent with the organisational goals
o Be realistic
o Identify performance indicators
2. Step 2: Measure actual performance
3. Step 3: Evaluate deviations
4. Step 4: Take corrective action
The Levels of Control
Two basic levels of control:
1. Strategic Control
2. Operations Control
Strategic Control
Exercised at top management level and entails a close study of the organisation’s:
1. Total effectiveness
a. The extent to which the organisation has reached its goals and the way in which the
goals have been realised.
b. Balanced score card is a management tool that measures an organisation’s
attainment of its mission by considering the role of finances, customers, internal
processes and learning and growth.
2. Productivity
Control
The regulatory task of management that determines whether or not there has been a deviation in
the organisational plans so that steps can be taken to prevent and/or rectify errors or deviations from
the plans.
The Importance of Control
1. Control ensures that all activities at all levels of the organisation are in accordance with the
organisation’s overall objective
2. Control ensures that the organisation’s resources are deployed in such a way that it attains
its objectives
3. Control results in better quality and enables management to cope with environmental
change and uncertainty.
4. Complex organisations need control measures to ensure that costly mistakes are avoided.
5. In order to compete, organisations need to be tightly run, and control is therefore necessary.
6. Control facilitates delegation and team work.
The Control Process
A process followed by management to ensure that the organisation’s goals and objectives are
realised or that actual performance ties in with predetermine standards.
Steps in the control process:
1. Step 1: Control standard – a target against which subsequent performance will be compared
Criteria of control standards:
o Be expressed in measurable terms
o Be consistent with the organisational goals
o Be realistic
o Identify performance indicators
2. Step 2: Measure actual performance
3. Step 3: Evaluate deviations
4. Step 4: Take corrective action
The Levels of Control
Two basic levels of control:
1. Strategic Control
2. Operations Control
Strategic Control
Exercised at top management level and entails a close study of the organisation’s:
1. Total effectiveness
a. The extent to which the organisation has reached its goals and the way in which the
goals have been realised.
b. Balanced score card is a management tool that measures an organisation’s
attainment of its mission by considering the role of finances, customers, internal
processes and learning and growth.
2. Productivity
