The Control Process

The control process is the direction for organizational control that derives from the goals and strategic plans of the organization.

Learning Objective

Define control processes in the context of the business organizational environemnt

Key Points

In order to create an effective control process, the company needs to determine what it is and where it is going.
Strategic goals need to begin with a broad view and then create layers of focus that outline how each department within the organization will contribute to those goals.
It is important to have a way to review organizational processes and determine if the company is on target to meet its goals.

Term

organizational control
The direction for organizational control comes from the goals and strategic plans of the organization. General plans are translated into specific performance measures, such as share of the market, earnings, return on investment, and budgets. The process of organizational control is to review and evaluate the performance of the system against these established norms.

Full Text

Control Process

The direction for organizational control comes from the goals and strategic plans of the organization. General plans are translated into specific performance measures, such as share of the market, earnings, return on investment, and budgets. The process of organizational control is to review and evaluate the performance of the system against these established metrics.

Organization

The influences in an organization

Tools for an Effective Control Process

In order to create an effective control process, the company needs to determine what it is and where it is going. A company's mission statement and objectives will help to determine the goals and how to put strategic elements in place to meet those goals. Strategic goals need to begin with a broad view and then create layers of focus that outline how each department within the organization will contribute to those goals. Specific timelines and deliverables need to be outlined so that everyone within the organization understands how their position fits within the plans of the organization.

Reviewing the Control Process

It is important to have a way to review organizational processes and determine if the company is on target to meet its goals. This means that some form of analytics need to be in place so that those who are reviewing the organizational processes can make an effective comparison.If the company is not meeting its goals, it is important to determine where the issues lie and how the company will come up with solutions so that the problem is resolved and the process can be improved. Looking at inefficient resources, supply chain issues, communication issues, and training issues can often help isolate where the problem(s) may lie.

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