Question

What are the 3 primary types of controls and what would be a good example of each control? Also, do you have examples of any of these controls from your organizations or do you have suggestions that you would like to see implemented in your organization?

Answer 1

Three primary types of organization controls are:

1)strategic control, 2)management control, 3)operational control.

*Strategic Control: The process of evaluating strategy, is practiced both after the strategy is formulated and after it is implemented. Strategic control is a term used to describe the process used by organizations to control the formation and execution of strategic plan.

The purpose of control at the strategic level is not to answer the question:' 'Have we made the right strategic choices at some time in the past?" but rather "How well are we doing now and how well will we be doing in the immediate future for which reliable information is available?" The point is not to bring to light past errors but to identify needed corrections to steer the corporation in the desired direction.

For example : In the business organization different types of strategies are made and implemented like How to produce better quality product , How to take work from laboures and reduce the idle time?

When such strategy is made for labours,management should focus that their intention to take work from labours do not interpret in wrong way by the labours and workers do not feel preasure besides it the strategy is such by which labour becomes self motivated.like offer incentive ,bonus etc.

2) Management Control: A management function aimed at achieving defined goals within an established timetable, and usually understood to have three components: (1) setting standards, (2) measuring actual performance, and (3) taking corrective action.

A  management control includes the following steps: (1) actual performance is compared with planned performance, (2) the difference between the two is measured, (3) causes contributing to the difference are identified, and (4) corrective action is taken to eliminate or minimize the difference. For example : in management control their are various functions that mangement has to do like- planning that from where raw material is to be purchased,quantity of raw material etc.These all controls related with management control.After receiving such material,how to convert it into finish goods so goods become more competitive.Then decide about the distribution & Marketing of the goods

3) Operation control: Operational control systems are designed to ensure that day-to-day actions are consistent with established plans and objectives. It focuses on events in a recent period. Operational control systems are derived from the requirements of the management control system.

Corrective action is taken where performance does not meet standards. This action may involve training, motivation, leadership, discipline, or termination.