Search results
Recognizing that organizational controls can be categorized in many ways, it is helpful at this point to distinguish between two sets of controls: (1) strategic controls and (2) management controls, sometimes called operating controls (Harrison & St. John, 2002).
- Two Levels of Control: Strategic and Operational. Imagine that you are the captain of a ship. The strategic controls make sure that your ship is going in the right direction; management and operating controls make sure that the ship is in good condition before, during, and after the voyage.
- Types of Control. It is also valuable to understand that, within the strategic and operational levels of control, there are several types of control. The first two types can be mapped across two dimensions: level of proactivity and outcome versus behavioral.
- Proactivity. Proactivity can be defined as the monitoring of problems in a way that provides their timely prevention, rather than after the fact reaction.
- Concurrent Controls. The process of monitoring and adjusting ongoing activities and processes is known as concurrent control. Such controls are not necessarily proactive, but they can prevent problems from becoming worse.
People also ask
What are the different types of control mechanisms in business?
What are the different types of control?
What are the different types of control processes?
What are the different types of management controls?
Organizational control typically involves four steps: (1) establish standards, (2) measure performance, (3) compare performance to standards, and then (4) take corrective action as needed. Corrective action can include changes made to the performance standards—setting them higher or lower or identifying new or additional standards.
- Strategic Control
- Operational Control
- Tactical Control
- Top-Down Controls
- Objective and Normative Control
Managers want to know if the company is headed in the right direction and if current company trends and changes are keeping them on that right path. To answer this question requires the implementation of strategic control. Strategic control involves monitoring a strategy as it is being implemented, evaluating deviations, and making necessary adjust...
Operational control involves control over intermediate-term operations and processes but not business strategies. Operational control systems ensure that activities are consistent with established plans. Mid-level management uses operational controls for intermediate-term decisions, typically over one to two years. When performance does not meet st...
A tactic is a method that meets a specific objective of an overall plan. Tactical control emphasizes the current operations of an organization. Managers determine what the various parts of the organization must do for the organization to be successful in the near future (one year or less). For example, a marketing strategy for a wholesale bakery mi...
Top-down controls are also known as bureaucratic controls. Top-down control means the use of rules, regulations, and formal authority to guide performance. It includes things such as budgets, statistical reports, and performance appraisals to regulate behavior and results. Top-down control is the most common process, where senior executives make de...
Objective control is based on facts that can be measured and tested. Rather than create a rule that may be ambiguous, objective controls measure observable behavior or output. As an example of a behavioral control, let’s say that a store wants employees to be friendly to customers. It could make that a rule as stated, but it may not be clear what t...
Feb 22, 2021 · Four of the most effective types of control mechanisms in business are: Bureaucratic controls, which are those "rules and procedures that direct and influence the actions of sub-units,"...
1) Introduce the control process. 2) Discuss the time and types of control processes. 3) Explore the overuse or underuse of the control function. Controlling. Control is installing processes to guide the team towards goals and monitoring performance towards goals (Batemen & Snell, 2013).
Organizational control systems allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns. Three basic types of control systems are available to executives: (1) output control, (2) behavioral control, and (3) clan control.
