Thursday, 27 December 2018

Four control measures

The control or in the language of the United Kingdom call the Controlling Department is one of the important. Functions of management that should be complete by all managers to achieve the purpose of the organization. Control can be define as a function of management to ensure that activities within the Organization are perform in accordance with plan. The function of Controlling or control also ensures the Organization's resources were use efficiently and effectively to achieve the purpose of the organization.

Regarding the sense of control (controlling), control is the process by which managers monitor and regulate. How an organization and all its members run the require activities. To achieve the goals of the Organization efficiently and effectively.


 In the control, the managers monitor and evaluate whether the strategy and structure of the Organization. To work as desire, how things can be improved and how it should be modified if it does not work.

The control function is basically complete in all types of organizations either in the form of commercial or non-commercial and is carry out at all levels of management i.e. Top management, middle-level management as well as lower levels of management.

Function Control will compare the actual performance of the organization with the specify standard, found irregularities and attempts to take corrective action. In this control function also help formulate planning in the future. Thus, the control Function will help in bringing back to management planning cycle.

The four steps in the control of Management

There are four main steps in the control of the organization that is setting standards, measuring performance. Compare performance with the specify standard and take action (repairing) the correction in case of irregularities. The following is a brief discussion about four steps in the process control of the organization.

Setting The Standard (Establishing Standards)

Is the Standard here being the target or targets to be achieve in carrying out the functions of management?. This standard will be use to measure and evaluate the performance of a work unit. The Department or the Organization as a whole. Standards can be also refer to as criteria to assess the Organization's performance. The work unit of the organization.

In General, standards can be classified into two types namely the Tangible and the Intangible.

  • Tangible (quantify or real) – Tangible is a standard that can be measured and real. Usually also call standard with measurable (Measurable Standards). Measurable standards specify by management can be either a Standard time to be achieve (Time), standard costs (Cost), sales (Sales) standard. The standard's market share (Market Share), Standard productivity (Productivity) to the profit to be achieved (Profit).

  • Intangible (not Measurable or intangible) – to Intangible is a standard that cannot be measure in monetary terms or numbers. These Intangible standards are more difficult to measure when compare to the standard tangible. For example, the standard of Intangible such as the attitude and behavior of an employee, an employee jobs, lapses the creativity of employees or customer loyalty.

This Management Control work will become easier with the setting of these standards. This is because the management control is done base on standards establish by the management itself.

Performance Measure (Performance Measurement)

 The second step in Management Control function is a measure of performance. The management will be able to more easily measure the performance if unit/unit or predetermine performance criteria. Basically, the performance measurement should be on the unit or the unit is equal to the specify criteria. Unit/unit or measurement should be well-defined and uniform throughout the process of measurement or assessment.

For example, if we define the standards productivity is in the form of a percentage (%) units, we must still use percentage (%) to measure it and should not use other units such as cost (Dollars) to measure it.

Compare actual performance with the specify Standards (Comparison of actual and standard performance)

Compare actual performance with the specify standard is a very important step. Step setting of standards and performance measurement step is essentially a preparatory step. Whereas this comparison step is a step that must be undertaken by management. Deviations can be define as the gap between the actual performance with the targets or standards establish. A manager should know two things in this step, i.e. the form of the irregularities that occur and the cause of occurrence of irregularities.

The Manager must also know and distinguish which is the deviation of the minor (small) that can be ignor in advance and which is the main irregularities must immediately take serious action. For example, if the cost of stationery occurs an increase of 5% to be actual target 8% the deviation can be categorize as irregularities minor (small).

But on the other hand, if the rate of disability increases the monthly production continuously then it can be categorize as major irregularities that must be immediately taken action of its repair. After learning that irregularities occur, a manager should immediately seek the cause of the occurrence of such irregularities.

Take action correction/repair (Taking Corrective Action)

 So the deviation and causes of irregularities is known, the next step is taking corrective action. If irregularities occur is small lapses can still be accept, then it doesn't need to perform corrective actions. But if irregularities occur is large deviation which has exceed acceptable bounds then must take immediate corrective actions and take preventative measures so that doesn't happen again in the future.

For example, the target level of disability (reject rate) product in production that can be accept is 2%, but on the actual level of disability products on production is 5%. The disability rate has exceed acceptable bounds so that the necessary investigations against those irregularities. After investigation, it turn out that cause high rates of defects this product is setting the wrong machine.

With the onset of the irregularities because he knows, then we must take the corrective action that is set back the machine to the correct settings and give an indication on the machine so that the incorrect setting does not occur again in the later in the day.

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