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Many companies bond employees in sensitive positions, and in so doing, they reduce the probability that the employees' behavior will cause significant harm to the firm.Finally, some control problems can and should be avoided by elimination of a business or an operation entirely.One important class of problems against which control systems guard may be called personal limitations.
In other words, there is a lack of goal congruence.
Steps must often be taken either to increase goal congruence or to prevent employees from acting in their own interest where goal incongruence exists.
What is needed is a broader perspective on control as a management function: this article addresses such a perspective.
The first part summarizes the general control problem by discussing the underlying reasons for implementing controls and by describing what can realistically be achieved.
And since management involves directing the activities of others, a major part of the control function is making sure other people do what should be done.
The management literature is filled with advice on how to achieve better control.At the extreme, if performance is not controlled on one or more critical performance dimensions, the outcome could be organizational failure.Perfect control, meaning complete assurance that actual accomplishment will proceed according to plan, is never possible because of the likely occurrence of unforeseen events.and plans are made, management's primary task is to take steps to ensure that these plans are carried out, or, if conditions warrant, that the plans are modified.This is the critical control function of management.Like any other economic good, the control tools are costly and should be implemented only if the expected benefits exceed the costs.Good control can be achieved by avoiding some behavioral problems and/or by implementing one or more types of control to protect against the remaining problems.The following sections discuss the major control options.In most situations, managers can avoid some control problems by allowing no opportunities for improper behavior. Computers and other means of automation reduce the organization's exposure to control problems because they can be set to perform appropriately (that is, as the organization desires), and they will perform more consistently than do human beings. Another avoidance possibility is centralization, such as that which takes place with very critical decisions at most organization levels.If all personnel always did what was best for the organization, control — and even management — would not be needed.But, obviously individuals are sometimes unable or unwilling to act in the organization's best interest, and a set of controls must be implemented to guard against undesirable behavior and to encourage desirable actions.