In 1916, Henri Fayol formulated one of the first definitions of
control as it pertains to management: "Control consists of verifying
whether everything occurs in conformity with the plan adopted, the instructions issued, and
principles established. It['s] object [is] to point out weaknesses and errors
in order to rectify [them] and prevent recurrence. "
Management control can be defined
as a systematic effort by business management to compare performance to
predetermined standards, plans, or objectives in order to determine whether
performance is in line with these standards. It is also used to determine,
presumably, if any remedial action is required to ensure that human and other
corporate resources are being used in the most effective and efficient way possible to achieve
corporate objectives.
Control can also be defined as
"that function of the system that adjusts operations as needed to achieve
the plan, or to maintain variations from system objectives within allowable
limits. " The control subsystem functions in close harmony with the
operating system. The degree to which they interact depends on the nature of
the operating system and its objectives. Stability concerns a system's ability
to maintain a pattern of output without wide fluctuations. Rapidity of
response pertains to the speed with which a system can correct variations and
return to expected output.
From these definitions, the close
link between planning and controlling can be seen. Planning is a process by
which an organization's objectives and the methods to achieve the objectives
are established, and controlling is a process which measures and directs the
actual performance against the planned goals of the organization. Thus, goals and
objectives are often referred to as the siamese twins of management: the
managerial function of management and the correction of performance in order to
ensure that enterprise objectives and the goals devised to attain them are
being accomplished.
Characteristics of Control
·
Control is a continuous process.
·
Control is a management process.
·
Control is embedded in each level of organizational hierarchy.
·
Control is forward-looking.
·
Control is closely linked with planning.
·
Control is a tool for achieving organizational activities.
·
Control is an end process.
The Elements of Control
The four
basic elements in a control system:
1. the
characteristic or condition to be controlled
2. the sensor
3. the
comparator
4. the
activator
These
occur in the same sequence and maintain a consistent relationship to each other
in every system.
The first element is the
characteristic or condition of the operating system that is to be measured. We
select a specific characteristic because a correlation exists between it and
how the system is performing. The
characteristic may be the output of the system during any stage of processing
or it may be a condition that is the result of the system. For example, it may
be the heat energy produced by the furnace or the temperature in the room that
has changed because of the heat generated by the furnace. In an elementary
school system, the hours a teacher works or the gain in knowledge demonstrated
by the students on a national examination are examples of characteristics that
may be selected for measurement, or control.
The second
element of control, the sensor, is a means for measuring the characteristic or
condition. For example, in a home-heating system, this device would be the
thermostat; and in a quality-control system, this measurement might be
performed by a visual inspection of the product.
The third element of control, the
comparator, determines the need for correction by comparing what is
occurring with what has been planned. Some deviation from plan is usual and
expected, but when variations are beyond those considered acceptable,
corrective action is required. It involves a sort of preventative action to
indicate that good control is being achieved.
The fourth element of control, the
activator, is the corrective action taken to return the system to expected
output. The actual person, device, or method used to direct corrective inputs
into the operating system may take a variety of forms. It may be a hydraulic
controller positioned by a
solenoid or electric motor in response to an electronic error signal, an
employee directed to rework the parts that failed to pass quality inspection,
or a school principal who decides to buy additional books to provide for an
increased number of students. As long as a plan is performed within allowable
limits, corrective action is not necessary; however, this seldom occurs in
practice
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