Controlling refers to one of the crucial tools of management that helps the business organizations to measure their actual performance against the planned goals and objectives. Implementation of effective control system is a major factor for organizational success.
Types of Controls
Three major types of controls can be seen in the organization; they are Feedforward Control, Concurrent Control and Feedback Control. In case of feedforward control, the organizational issues are closely monitored so that timely prevention can be taken. In case of concurrent control, the ongoing business activities are monitored and adjusted in order to solve the organizational problems. In case of feedback control, after gathering necessary information about organizational problems, they are evaluated to improve them.
One of the major benefits of establishing the controlling system in organization is that it provides the management with necessary feedbacks for solving the organizational performance and other issues. The control system in organizations provides constructive feedback to strengthen organizational operations. It is necessary to establish control system in the organization as shows the weak areas in management for achieving the organizational goals and objectives. In this way, it enhances the efficiency and effectiveness of the whole organization.
Nature of Feedback
In the organization, both positive and negative feedbacks are received from the organizational people. The positive feedbacks help the management to strengthen various operations of the company. However, the negative feedbacks help to show the loopholes in operations in the company and in the management. Whenever negative feedbacks are received, the management of the company uses to take quick actions solve the issues and they start developing strategies. In this way, the negative feedbacks are transformed to positive ones.
Preferred Feedback and Control
In the particular organization, the management of the company prefers to have negative feedback and they prefer to implement feedback control within the organization. The reason is that negative feedbacks help the management to find out the weak areas of the company so that they can bring improvements there. After receiving the negative controls, they are evaluated and prioritize based on their importance in the organizations. With the help of feedback control, the management of the company uses to develop suitable strategies so that those issues can be effectively diminished.
There are four steps to improve the control system of thee organization. First, management needs to establish certain performance standards in order to improve the control system. Second, company management needs to keep track of the performance of the company based on the established performance standards. Third, the management of the company needs to develop effective organizational structure that best suits the control mechanism. Fourth, management needs to adopt suitable leadership style to implement control system in the organization.
The above study shows that the effective implementation of control and feedback mechanisms in the companies are utmost important to improve organizational performance. It is required for the companies to select the suitable control and feedback system based on their business operations.
Cuguer?-Escofet, Nat?lia, and Josep M. Rosanas. "The just design and use of management control systems as requirements for goal congruence." Management Accounting Research 24.1 (2013): 23-40.
Doyle, John C., Bruce A. Francis, and Allen R. Tannenbaum. Feedback control theory. Courier Corporation, 2013.
Friedland, Bernard. Control system design: an introduction to state-space methods. Courier Corporation, 2012.
Strau?, Erik, and Christina Zecher. "Management control systems: a review." Journal of Management Control 23.4 (2013): 233-268.