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The modern business world is characterized by a highly competitive environment, and companies have to seek for ways achieve and then sustain high performance. Thus, organizations employ the four functions to reach this aim. The control function is the final stage of the management process. This stage is vital as it ensures meeting organizational goals, which is associated with the overall performance of the organization. The control function appears in all processes and all parts of a company. It is important to define this function and identify its types to understand its importance for the organization’s success.
In simple terms, it is possible to define the control function as the process aimed at ensuring that activities do not deviate from the set standards. Importantly, the control function focuses on the result rather than the process itself. Controlling involves such stages as establishing standards, measuring performance, comparing actual performance with the standard one, and implementing corrections. It is important to understand each stage of the process to evaluate the function’s importance.
The first stage of the controlling process is the development of standards. These standards should be consistent with the organizational goals. In many cases, managers choose standards accepted in other companies that are regarded successful, but sometimes each company (or each department or even process) can have particular standards that are unique. The stage of measuring can be further divided into two phases. First, measurement tools are chosen, and after that, the measurement process takes place. It is important to make sure that measurement is as detailed as possible. This is crucial for identifying deviations from the standard if any. Comparing the actual and standard performance is the next stage. Thorough analysis is also vital as it ensures identification of particular deviations as well as the causes of these inconsistencies with the standard. Finally, the implementation of corrections is the process that helps to remove any deviations and make all the activities consistent with the standards set.
Three types of controlling exist (feedforward, concurrent and feedback controls). Feedforward controls focus on prevention of any possible deviations from the standard. This type of controls often takes into account such aspects as human resources as well as finances and material resources. The most vivid illustration of the feedforward controls is associated with human resources. Thus, the company tries to hire high-performing professionals who are likely to achieve the organizational goals. The HR specialists test people and check their ability to comply with the organizational standards. This helps prevent some deviations from the standard performance.
The other two types of controls can be found in all activities and all parts of the organization. The concurrent controls ensure that the activities are consistent with the standards established. The control takes place when the activity is still in progress. One of the most illustrative examples is the product quality control. There are various tests and other measurement tools that ensure the compliance with the standard at the stage of the production. The feedback controls are often the most common type of controls used. It implies the review of the information aimed at identifying whether the goals and standards are met. Financial performance measurement can be seen as an illustration of this type of controls. The management measures the profit of the company and identifies whether the goals are met and whether the changes are necessary.
Apart from the focus on the period when the control is implemented it is necessary to take a closer look at the segments of the organizational activities that can be controlled. It is possible to identify three major spheres where the control function is used. These are the control of actions, results, and personnel. In the majority of cases, organizations use all the three types of control, but some focus on a particular segment. Each approach can be justified as the goals of companies differ. More so, at different stages of the organizational development, it can be important to focus on a specific sphere.
For instance, the employees’ morale can decrease due to various reasons, and it can be important to control the personnel’s performance alongside with the identification of the reasons for this change. These reasons may include the lack of detailed instructions, the lack of motivation, inefficient communication and so on. The corrective measures will depend on the reasons of the decreased efficiency and the particular spheres where the performance is poor. However, as has been mentioned above, the staff controlling is often associated with prevention rather than reacting to deviations.
Some companies may need to focus on activities control. This approach is also commonly related to prevention, but it can also be carried out as the concurrent or feedback control. For example, the quality of products may decrease due to the malfunction of the equipment. The action-based control can reveal the particular process that needs improvement, which will lead to the improvements in the organization’s performance. The result-based control has been discussed in detail earlier. It is possible to add that companies often resort to this type of control to evaluate the performance of the company and identify any deviations or malfunctioning.
As has been mentioned above, the controlling is concerned with standards and results. One of the problems any organization may face is the employees’ unwillingness or inability to comply with the standards established. This can be a result of the lack of skills, training or commitment. The control function helps identify the spheres where corrective measures are needed, which ensures the achievement of organizational goals. One of the benefits of this function is associated with its accuracy. The function provides detailed information on deviations as well as sheds light on the reason for the lack of commitment to standards.
It is necessary to note that the necessary amount of control often differs. Clearly, controlling activities require allocation of some sources (which can be significant in many cases). Nonetheless, companies often have limited resources and have to choose the most cost-effective actions to fund. The most control is needed with the strategic activities. It is important to prioritize the processes and carry out most control-related activities with the most relevant components.
Understanding of the nature of the control and the spheres where it can be needed helps identify the importance of this function. One of the primary benefits of the control function is its contribution to achieving goals of the company. When the company sets its goals and develops a plan, the control function helps it to ensure that the goals will be met. The company can remain focused on its core activities and provide high-quality products and services. It is associated with the decrease of errors, miscommunication, and related issues. This positively affects the development of the organization. Another important benefit is this function’s contribution to the decision-making process. Thus, the company can prioritize its activities, develop standards, allocate resources in a more efficient way.
Furthermore, the control function enables companies to improve the existing standards. They can become more accurate. Clearly, it can be difficult to develop standards and describe each point in detail, especially during the initial stages of the organizational development. The lack of accuracy in standards may have an adverse effect on the company’s performance. At that, the control function often helps improve the standards through the provision of more details on each operation or behavior.
Another important benefit of the control function is the improved motivation of the personnel. It can seem doubtful as many people dislike control over their actions. However, the control within the organization can increase the employees’ morale. This function is associated with the articulation of specific standards and goals. This adds clarity and transparency that are always valued by employees.
In conclusion, it is possible to note that the control function is an important part of the organizational management. The controlling is related to any part or any action within the organization. There are different approaches to the function as it can be preventive, concurrent or feedback. Organizations often choose all the three types of control but still pay more attention to one of these paradigms. The major benefit of the control function is that it helps improve the company’s performance due to the development of accurate standards, improving the staff’s morale and the opportunity to sustain high-quality of products and services provided.
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