Question 4 OR (b)

Control: concept, process and requirements of an effective control system

9 marks

Time to write
About 18 minutes
Topic
Controlling: process and measures
Notes
Crux notes

Question

Question 4 OR (b) · 9 marks

Discuss the concept of control and its process. State what an effective control system requires.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • Discuss…State…Two asks in one question: answer both.
  • processA process: the steps in order, one heading each.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Concept of control 1½ marks 1 min
  3. 2 Process of control 3½ marks 7 min
  4. 3 Requirements of an effective control system 3½ marks 7 min
  5. 4 Conclusion ½ mark 1 min
  6. Check: every ask answered, key terms underlined 1 min

Easy marks

  • Concept of control (step 1, 1½ marks): a clear definition and a line on what it covers. It opens the answer, so it takes a minute or two.

Short on time? Keep step 1 short. Trim steps 2 and 3 evenly rather than skip one: each is capped at its own marks. End with step 4 in a line or two.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Concept of control

Control is the managerial function of ensuring that activities and results conform to plans. It involves setting standards, measuring actual performance, comparing it with standards and taking corrective action. Control is goal-oriented, pervasive (every manager controls), continuous, closely linked with planning (plans provide the standards) and both backward-looking (it evaluates past results) and forward-looking (it improves future performance). Control may be feedforward (before work starts), concurrent (during work) or feedback (after work).

Picture itControl: concept, process and requirements of an effective control system

1The standard goes on the wall: 98 parcels in 100 delivered within two days.

Deciding the yardstickA courier company sets a standard of 98 per cent of parcels delivered within two days.

2The weekly report brings the branch in at 90—she reads it twice.

Finding out what actually happenedWeekly reports show a branch at 90 per cent.

3She walks the yard and finds the why: two vans with their bonnets up.

Asking whyAnalysis shows two delivery vans out of service.

4Hired vans roll in, routes are redrawn, and the branch climbs back to standard.

Putting it rightThe manager hires temporary vans and reschedules routes, and the branch returns to standard.

Process of control

  1. Deciding what good performance looks like. The yardsticks are targets against which performance is measured: quantitative (units produced, cost per unit, sales, defects) or qualitative (customer satisfaction, morale). They should be clear, measurable and realistic, and focus on critical points.
  2. Finding out what actually happened. Results are captured through observation, reports, inspection and information systems, accurately and in time.
  3. Spotting the gap. Results are set against the yardsticks; small ones within tolerance are ignored, and significant ones are reported (control by exception).
  4. Asking why. For each significant gap, the reason is traced: unrealistic standards, faulty methods, inadequate resources, untrained staff or changed conditions.
  5. Putting it right. Methods, resources, people or plans are changed as needed, and the results feed into future planning.

Requirements of an effective control system

  1. Timely: deviations are reported quickly enough to act on, ideally before they occur.
  2. Acceptable to people: fair standards and participation encourage self-control rather than resentment.
  3. Action-oriented: it leads to corrective action, not merely reports.
  4. Simple and understandable: people know what is measured and why.
  5. Economical: the cost of control is justified by its benefits.
  6. Fixes responsibility: deviations can be traced to the person accountable.
  7. Flexible: controls adapt to changes in plans and conditions.
  8. Accurate and objective: measurements are reliable and impartial.
  9. Exception at key points: attention goes to key result areas, and only significant deviations go up to top management.
  10. Fit with plans and with the organisation: each plan, department and manager needs its own kind of control.

Example. A pizza chain sets a standard of delivery within 30 minutes, tracks every order's time through its app, reviews daily the outlets falling below 95 per cent, and adds riders or reroutes deliveries where needed.

Conclusion

Control completes the management cycle by making sure plans are achieved. A control system meeting these requirements keeps the organisation on course without stifling initiative. Common techniques that support it include budgets, financial ratios, break-even analysis, management audit, and PERT and CPM.

Where the 9 marks sit

#ComponentMarks
1Concept of control1.5
2Process of control3.5
3Requirements of an effective control system3.5
4Conclusion0.5
Total9
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