Scope of Control; Control ensures that there is effective and efficient utilization of organizational resources so as to achieve the plan goals. Control is a primary goal-oriented function of management in an organization. It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performing according to the plans and if not then taking corrective action. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.
What is the Scope of Control? 12 perfect Explanation.
Controlling is an important function of management which all the managers are requiring to perform. According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.” The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.
For effective control, it is important to know what are the critical areas where control would exercise. The identification of these areas of control enhances the management to;
- Delegate authority and fixing up of responsibility.
- Reduce the burden of supervising each activity in detail, and.
- Have a means of securing satisfactory results.
Though controls are needs in every area where performance and results directly and Vitally affect the survival and prosperity of the organization, these areas need to be specifically spelled out. What is Control and Organizational Factors? easy Explanation.
The following discussion points out the problems and methods of control in each major area.
Policies are formulating to govern the behavior and action of personnel in the organization. These may write or otherwise, policies are generally controlling through policy manuals, which are generally preparing by top management. Each individual in the organization is expecting to function according to policy manuals.
Organization charts and manuals are using to keep control over organization structure. Organization manuals attempt at solving organizational problems and conflicts, making long-range organizational planning possible, enabling rationalization of the organization structure, helping in proper designing and clarification of each part of the organization, and conducting a periodic check of facts about organization practice.
Generally, the personnel manager or head of the personnel department, whatever his designation maybe, keeps control over personnel in the organization. Sometimes, a personnel committee is constituting to act as the ail instrument of control over key personnel.
In Wages and Salaries:
Control over wages and salaries are finishing by having a program of job evaluation, and wage and salary analysis. The functions are carrying on by personnel and industrial engineering departments. Often the wage and salary committee is constituting to provide help to these departments.
Control over costs is exercising by making a comparison between standard costs and actual costs. Standard costs are set in respect of different elements of costs. Cost control is also supplementing by a budgetary control system, which includes different types of budgets. Controller’s department provides information for setting standard costs, calculating actual costs, and pointing out differences between these two.
In Methods and Manpower:
Control over methods and manpower is keeping to ensure that each individual is working properly and timely. For this purpose, periodic analysis of the activities of each department is conducting. The functions perform, methods adopt, and time-consuming by every individual is studied to eliminate nonessential functions, methods, and time. Many organizations create separate department or section known as organization and methods’ to keep control over methods and manpower.
In Capital Expenditure:
Control over capital expenditure is exercising through the system of evaluation of projects, ranking of projects on the basis of their importance, generally on the basis of their earning capacity. A capital budget is preparing for the business as a whole. The budget committee or appropriation committee reviews the budget. For effective control over capital expenditure, there should be a plan to identify the realization of benefits from capital expenditure and to make comparison with anticipated results. Such a comparison is important in the sense that it serves as an important guide for future capital budgeting activities.
Control over service departments is effecting either; 1) through budgetary control within Operating departments, or 2) through putting the limits upon the amount of service an individual department can ask, or 3) through authorizing the head of the service department to evaluate the request for service made by other departments and to use his discretion about the quantum of service to render to a particular department: Sometimes, a combination of these methods may use.
In-Line of Products:
A committee whose members are drawn from production, sales, and research departments exercise control over the line of products. The committee controls through studies about market needs. Efforts are making to simplify and rationalize the line of products.
In Research and Development:
Control over research and development is exercising in two ways: by providing a budget for research and development and by evaluating each project keeping in view savings, sales, or profit potentialities. Research and development is a highly technical activity are also controlling indirectly. Improving the ability and judgment of the research staff through training programs and other devices does this.
In Foreign Operations:
Foreign operations are controlling in the same way as domestic ones. The tools and techniques applied are the same. The only difference is that the chief executive of foreign operations has a relatively greater amount of authority.
In External Relations:
The public relations department regulates external relations. This department may prescribe certain measures to follow by other departments while dealing with external parties.
Control over each segment of the organization contributes to the overall organizational control. However, some special measures are devising to exercise overall control. This is done through budgetary control project profit and loss account and balance sheet. Integrating and coordinating budgets prepared by each segment prepare a master budget. The budget committee reviews such budget This budget acts as an instrument for overall control. Profit and loss account and balance sheet are also using to measure the overall results.