Question

answer to these questions in very short essay

1)Differentiate between strategic, operational, and tactical controls? Between top-down, objective, and normative control.

2)Identify the four typical components of the balanced scorecard.

3)Explain the need for a balanced scorecard.

4)What is the use of budgets to both control and delegate authority?

Answer 1

1)All the three strategic,operational and tactical controls work together in an organisation with an aim of taking the organisation forward. The difference is in the specificity and the way the management deals with them. Strategic planning takes into consideration the whole business and not a part of it.It deals with the strategy of the business and with allocating the resources effectively to achieve its goal. The key questions that it deals with are what to do,for whom and the third main question is how to ecxel in business.Tactical planning is short run planning of various units of the organisation.The period may be a year and tactical planning is usually done in production,marketing,personnel, finance etc.Operational control tries to connect strategic objectives with tactical objectives.It measures the progress of the business.

Top down control uses rules and regulations and authority in order to guide the business through budgets , statistics,personal appraisals etc.Here senior executives take decisions and apply  them in business.Thus the business is regulated.However the disadvantage is that the employees at the lower level who are in touch with the customers may not share all information to the senior executive.Objective control measure behavior or output.It does not believe in rule but is flexible. Normative control also does not believe in written rules and regulations rather they use values and beliefs and reflects the culture of the organisation..

2)The balanced scorecard shows the performance of the organisation in four areas like financial, customer,internal process and innovation.Financial perspective which shows financial performance  ,finding customer satisfaction,and also attitudes and market share goals.

3)The balanced scorecard gives a balanced view of the performance of the organisation.It looks at the company from four different perspectives like learning and growth, internal business processes, customer perspective,and finance. Without a balanced scorecard the executives focus on only one aspect of the organisation.

4)A budget sets a limit on spending and helps in achieving the goals and objectives of the organisation.It is also used to delegate authority.The executive may assign a work to a junior employee and give funds to carry out the task.In this way the executive delegates the authority to the employee to use the funds in an efficient manner.