Business Management: In control.

What is a successful business without control?

     “Control is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits. Control provides ways to adapt to environmental change, to limit the accumulation of errors, to cope with organizational complexity, and to minimize costs (http://college.cengage.com/business/resources/researchcenter/students/index.html)."

     Management control can have a variety of elements.  Control can be targeted toward financial aspects, physical, informational, and human resources.  Proper guidance is the function of managers, controllers, and operating employees.  We must all participate.  The steps have to be precise. 

(1) substantiate standards of future performance

(2) gauge actual performance

(3) assimilate performance to the standards

(4) appraise performance and take appropriate action.

     Directions establish limits.  There are different types.  Operations control focuses on the processes the organization uses to transform resources into products or services. Preliminary control is concerned with the resources that serve as inputs to the system. Screening control is concerned with the transformation processes used by the organization. Post action control is concerned with the outputs of the organization. Most organizations need multiple control systems because no one system alone can provide adequate control.  Financial control focuses on controlling the organization's financial resources.  Structural control addresses how well an organization's structural elements serve their intended purpose.  Strategic control focuses on how effectively the organization's strategies are succeeding in helping the organization meet its goals.

     Control maintenance should include being flexible, accurate, timely, and as objective as possible. Employees may resist organizational controls because of over control, inappropriate focus, rewards for inefficiency, and a desire to avoid accountability.

    “It is difficult for organizations to avoid change as new ideas promote growth for them and their members. Change occurs for many reasons such as new staff roles; increases or decreases in funding; acquisition of new technology; new missions, vision or goals; and to reach new members or clients. Changes can create new opportunities, but are often met with criticism from resistant individuals within the group (http://college.cengage.com/business/resources/researchcenter/students/index.html).”

     If management needs to be reinvigorated, there is always the right time and place.  Should a new management team strategy be implemented?

     There are risks involved in introducing new management to a company.  It is a risk for both the new management team and the existing employees.  Workers wonder about new rules and procedures.

     FAQs include: will the new policy fit the expectations of the new managers, and will management bring in new employees to replace anyone who doesn't fit?

     There is always a degree of resistance to control changes.

     “… Resistance is more a function of inadequate preparation than actual employee reluctance to cooperate (http://work.chron.com/overcoming-resistance-new-management-5910.html).”

     Resistance can be managed.

     Employees respect the need for control.  It is understood that in order to achieve organizational objectives policy must be effective.  Standards of performance must be met. 

     Control change begins with the workplace attitude.  Positive and negative conditioning from management directly reflects physical, financial, and human resource objectives.  Directions can change workers attitudes towards controls from negative to positive.

     Guidance shouldn’t be completely dominant, but realistic.  Guidance shouldn’t be too light, or seemingly inadequate.  Excessive guidance is defined as under-control and over-control.  Neither of these are affective organizational goals.  Management must undergo constant maintenance in order to optimize workers performance.

If a management overhaul is called to order then proper implementation will follow these steps:

-Define output goals for the new management staff.

-Present the new management team to the employees along with their new goals.

-Bestow the overview of the employees’ expected roles to move toward success.

     Company control evaluations will always require updates.  When you update your evaluation process you should aim towards improvement of behavior.  Intelligent introductions of a new management team are important, but team leadership is what makes the change successful.

-Concentrate on end results and outcomes of activities.  This is the alternative to focusing on the way these results are achieved.

-Flexibility of controls may not always get desired results from workers, though. Standards should be subject to change, because faulty standards can cause deviation in performance.

-Ensure that employees participate in designing the control system.  Participation helps employees develop a better understanding of the standards and self-assess their own performance. Self-control is excellent control.

-When the situation allows, managers should reward employees demonstrating acceptable performance. Positive reinforcement motivates other workers to achieve the standard performance.

-When hard workers try to achieve their targets, some amount of deviation in their performance may occur, regardless. Deviations of =5%, for example, may be ignored by managers. The percentage of deviation depends on the nature of product.  Don’t misuse your favorite employees.  Resistance can be controlled.

     Managers can overcome this resistance by improving the effectiveness of controls, allowing employee participation, and developing verification procedures.  What is a successful business without delegating responsibilities to able individuals?