Requirements of Effective Controls

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Requirements of Effective Controls:

Tailoring controls to plans and positions:

Control techniques should reflect the plans they follow, and reflect the place in the organization where responsibility for action lies. This enables managers to take action when controls differ from their plans.

Tailoring controls to individual managers:

When controls are tailored to individual managers, individual managers carry out their functions of control more effectively. The system of control shouldn't be too ambiguous to people who will utilize it.

Making sure the control point up expectations at critical points:

Controls that point out exceptions help managers detect areas that require attention. Its is best to look for exceptions at critical points, and the exception principle should be accompanied by principle of critical point control.

Seeking objectivity of controls:

An objective, accuracy, and suitable standards are required for effective control technique.

Ensuring flexibility of controls:

Controls should remain in place despite unexpected plans, unforeseen circumstances, or outright failures.

Fitting the control system to the organizational culture:

Systems that fit within the organizational culture are deemed to do best.

Achieving economy of controls:

Control techniques are most effective when they achieve maximum output at minimum cost.

Establishing controls that lead to corrective action:

Controls are useful only if they can correct plans through better planning, organization, staffing and leadership.

Additional Readings:

1. Functions of a Business Manager
2. Henry Fayol and Modern Management Theory
3. Modern Management Thoughts and McKinsey's 7-S framework
4. Industrial Planning
5. Management and Setting of Objectives
6. Principals of Organization
7. Matrix Organizations
8. Functions of the Human Resources and Accounting within an Organization
9. Differentiation between Motivation and Satisfaction
10. Barriers to Good Communication
11. Requirements of Effective Controls
12. Formal and Informal Organizations
13. Bonded Rationality

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