Organizational Control

Organizational Control is regulation of organizational activities, so that the performance remains according to the objectives.

Organizational Control has following role  in an organization:-

1. Provides an account of how the organization is performing in accordance with the set objectives

2. Are the different sub-systems and parts working according to their established roles?

3. Organizational control also keeps the organization in a direction

organizational control also serves following purposes 

1. Adapt to Environmental change:- If environment changes, a goal may be irrelevant, obsolete so control function helps to modify the goals itself, second thing is that it helps organization to keep up according to the goals , so control then direction in changing environmental

2.Limit the accumulation of the error: - Small errors may not be serious at the time but with the course of time , these errors may accumulate and become a serious problem.
for example:-

For example, Whistler Corporation, a large radar detector manufacturer, was once faced with such rapidly escalating demand that quality essentially became irrelevant. The defect rate rose from 4 percent to 9 percent to 15 percent and eventually reached 25 percent. One day, a manager realized that 100 of the firm’s 250 employees were spending all their time fixing defective units and that $2 million worth of inventory was awaiting repair 

3. Cope with Organizational complexity:-as the organization grows, it takes on various tasks, productions and it designs becomes complex.
To effectively manage such a complexity in product lines, designs and roles and effective control system is needed.

4.Minimize costs:- Resources are scarce and to be efficient it is necessary to minimize the costs. Organizational control helps in controlling the quality and quantity of resources and thus minimizing costs
of production.

Process of Control-

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1.Establish Standards

—  Control standard—a target against which subsequent performance will be compared.Control standards should be expressed in measurable terms.Control standards should be consistent with organizational goals.

Control standards should be identifiable indicators of performance

2.Measure Performance-—  Performance measurement is an ongoing process. Performance measures must be valid indicators (e.g., sales, costs, units produced) of performance.

3.Compare Performance Against Standards-—  Define what is a permissible deviation from the performance standard and—  Utilize the appropriate timetable for measurement.

4.Determine the Need for Corrective Action-   Maintain the status quo (do nothing) or,—  Correct the deviation to bring operations into compliance with the standard, or—  Change the standard if it was set too high or too low

Control System and forms of Organizational Control

Control System explained in this picture is composed of input , transformation and output subsystems. through feedback the corrective action is taken.

Different forms of Organizational control

Preliminary Control- This form of control focuses on controlling the quality and quantity of input resources- human, physical, informational and financial resources. If the quality and quantity of resources used will be good and appropriate, it will be better to ensure the performance according to standards. Preliminary control should be the part of an effective control system.

For example- If a school wants to become the best school, it should take good students through entrance test, good teachers through tough interviews and good educational materials because these are inputs. It will help to control the quality keep the performance according to the objectives.

Concurrent Control- This form of control means focusing on meeting the standards during the transformation process.
Dell computers are produced in assembly line fashion. After assembling each part it is checked that assembled parts are working properly. In this process it is clear that control is going simultaneously with production and assembling of computers.

Post-Action Control-   Checking the quality and quantity of the output or products after production or transformation process.

Organizational control should incorporate control at all type. Inputs should be controlled, transformation process should be controlled and also the feedback of product should be taken and quality should be improved. In Honda , all these control methods are followed.