Topic: Controlling Mechanisms for Effective Functioning of an

Organization
Management of Organizations and Systems (MGT-501)

Term Paper on “Controlling Mechanisms for Effective

Functioning of an Organization”

Submitted to:
Dr. Niamul Karim
Associate Professor and Adjunct Faculty
Graduate School of Management (GSM)
BRAC University

Submitted by: (Group-4)

FayekaFarha Shahreen-20264017
SabihaTabassum Lima-20264018
Farhana Aziz-20264020
Tamanna Sharmin Queen-20264021
Bushra Ahmed-20264023

Date of Submission: 29th December, 2020

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 Letter of Transmittal
Date: 29th December, 2020

Dr. Niamul Karim

Associate Professor and Adjunct Faculty

Graduate School of Management (GSM), BRAC University

Subject: Submission of Term Paper on “Controlling Mechanisms for Effective Functioning of an

Organization”

Dear Sir,

We are pleased to submit our term paper on “Controlling Mechanisms for Effective Functioning of
an Organization” which you have assigned to us. This term paper is the result of the knowledge which
has been acquired from the respective course MGT-501.

We tried our best to prepare an effective & creditable term paper. Besides, it contains brief but
informative aspects of the organization’s management in terms of controlling. The information of this
term paper is mainly based on Book, Internet, and what we have learned from the classes. Moreover,
we have tried to follow each of the instructions which have been suggested by you. By following those
instructions, we have tried to represent our perception and views on this in terms of our understanding.
Most importantly, your valuable insight and the term paper has helped us to enrich the quality of our
work.

We, hope that you will find this term paper worth reading. Please feel free for any query or clarification
that you would like us to explain. Hope you will appreciate our hard work and excuse the minor errors.
Thanking you for your cooperation.

Sincerely yours,

FayekaFarha Shahreen-20264017

SabihaTabassum Lima-20264018

Farhana Aziz-20264020
Tamanna Sharmin Queen-20264021
Bushra Ahmed-20264023

i
 Abstract

An organization is an entity in which a group of people work together with a view to achieve

business goals. To achieve the goal, managers need to follow the management process which

can be proceeded by four functions of management- planning, organizing, leading and

controlling. Things always don’t go as planned this is why controlling is very important to

make things right. Controlling is the last and final step of management function.

Managers should monitor whether goals that have been set as part of the planning process are

being completed efficiently and effectively or not. Controlling can help managers to check

errors and to look for specific performance gaps and areas so that they can take corrective

actions for improvement. There are many tools for measuring organizational performance in

terms of controlling. It’s the manager’s decision to think which method of controlling will be

beneficial for the employees. Also, to implement those methods, managers need to apply the

control process and consider the contemporary issues by which they can be able to understand

from where the problem is occurring. After that they will be able to solve the problem.

Moreover, Employees will be motivated if a manager can take corrective actions. Thus, the

goals of the organization will be achieved as well.

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 Table of Contents
Topic Page no.

1. Introduction

1.1 Introduction of Controlling Mechanism 1-2

1.2 Importance of Controlling Mechanism in 2-3

Organizations

2. The Control Process

2.1 Steps in the Control Process 4-7

3. Tools for measuring organizational

performance in terms of Controlling

Mechanism

3.1 Types of Control 7-11

3.2 Areas of Control 11-14

3.3 Levels of Control 15-26

4. Sources of Controlling Mechanism

4.1 Benchmarking 27-30

4.2 Characteristics of Effective Control 30-35

4.3 Overcoming Resistance to Control 35-36

5. Relationship among the Four Functions of

Management in terms of Controlling 37-40

Mechanism

6. Contemporary Issues in Controlling 40-46

Mechanism

7. Recommendations 47

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8. Conclusion 47-48

9. References 49

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 1. INTRODUCTION
1.1 Introduction of Controlling Mechanism

The management of every organization makes a thorough check to prevent any adversity by

following a systematic approach. It is acknowledged by the managerial function that

controlling is a vital process for performance to be monitored and measured according to its

actual against standard deviation that helps in taking corrective measures for an organization.

It entails verification by conforming the plans have been approved, instruction delivered and

recognized.

The manager’s needs to monitor their subordinate’s activities by checking the performance of

the planned unit to evaluate the actual performance against desired performance. This ensures

effective control by utilizing the organization resources in the right way to lead to the

achievement of goals. Additionally, the activities are followed sequentially which sets

discipline and order in the work for employees. It eventually motivates the employees to

comprehend their capabilities in work.

Moreover, it is found that in an ever-changing environment where the exchange of information

can be complex due to hierarchy arrangement, controlling plays an integral role in the

organization. However, controlling has setbacks which are unavoidable i.e. external factors

influence the organization.

1.2 Importance of Controlling Mechanism in Organizations

The structure of the organization is created with a plan to enable an efficient attainment of goals

that encourages and motivates employee from end to end effective leadership. Conversely, an

assurance is needed for employees and managers to measure the work activities in order to

calculate whether the goals are accomplished or not. Therefore, control is important to help

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managers in balancing the effectiveness of resources and efficiency of employees’ work flow.

In addition, the importance of controlling can be leveraged for the purpose of organization. The

importance of controlling in the organization are described below:

1. Establishment of the organizational goal: A well- planned activity and strategies can

help managers of an organization to become goal oriented. The required deviations are

being tracked to see whether the standard and actual deviation are performing or not. If the

deviations are not going as planned then corrective actions are taken in account. By doing

so, it minimizes the error and clear image forms that are instructed by managers to

employees be followed. This helps the employees to understand a clear vision, which is

given priority and keep them focused on their goal. As the goal is strengthened, the

employees will put effort in achieving it. If the effort is not given in the right direction, then

the process of controlling falls apart. Thus, the process certifies directing effort into

accomplishing predetermined objectives.

2. Optimum resources utilization:

During the process of controlling, the amount of resources used falls under strict inspection.

This is because the usage of resources is calculated to evaluate whether the desired measure

uses more or less resources than standard measure. Resources are vital parts that need to be

used carefully because management observes whether there are alternative ways to get the

work done or not to save up the time and energy. The managers make an estimation and

track the use of resources. As a result, physical and human resources needed to be used

efficiently to not delay in work and no wastage is incurred.

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3. Empowering employees:

Employee empowerment is important in controlling because employees need to have a

clear image of a goal for which they will be prized or rewarded otherwise punished. There

is a tendency in employees to receive awards and avoid punishment causing them to get

better results. However, managers are unwilling to empower their employees in work

because of being held responsible for encouraging them to do something which might go

wrong if not handled or executed properly. It is important to be accredited that in an

effective control system a flowing information and feedback to employees on their

performance can help to reduce the potential errors.

4. Workplace protection from damage:

It is important for managers to protect the assets and workplace of the organization from

environmental threats such as natural adversity or production disruptions. Additionally, it

is encountered by managers to keep a preplan in any case if the workplace is in danger. To

protect organizational assets and others, managers ensures that they have wide-ranging

controls and backup plots to reduce disturbances. Moreover, controlling certifies that order

and discipline are being followed to avoid unwanted doings in workstation such as

corruptions, work delay, or unhelpful approaches. These undesirable activities can create

an unbalance impact.

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 2. THE CONTROL PROCESS

Setting performance standards

Measuring actual performance

Comparing the actual performance

against standard performance

Analyzing deviation

Taking corrective actions

2.1 Steps in the Control Process

In an organization, an appropriate performance management of control function is complex to

succeed. This is because after setting plans in order to place, management must perform a

sequence of steps to confirm the plan is executed. While executing the plan, the activities are

being monitored and checked to ensure all the necessary steps are followed without skipping

anything. So, there are five control process steps that are described below:

1. Setting performance standards:

After setting the plan, managers make a strategy to convert plans into a standardized

performance. The standardized performance is seen as a goal which will be the target to be

realistic, quantifiable, and clear. The standard performance is set to help the managers to

evaluate whether the performance is quite calculative for the organizational goals to be

matched.

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2. Measuring actual performance:

To predict and determine the actual performance, the managers need to collect information

of what to measure and how to measure. It is assumed that managers use four approaches

to measure and prepare reports based on what they measured. The four approaches have

advantages and disadvantages which causes managers to use combination approaches. The

four approaches are personal observations, statistical reports, oral reports, and written

reports.

Advantages Disadvantages

Personal observations • Unfiltered facts • Takes huge length of

• Immediate information time

Statistical reports • Better visualization • Limited information

• Shows relationship

connection

Oral reports • Allow criticism • Filtered information

• Quick way to collect

information

Written reports • Brief and formal • Time consuming

In the actual performances what are measured completely depends on what are dependent

and independent variables. As subjective measures are used that put constrictions or

limitations.

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3. Comparing the actual performance against standard performance:

In this step, the actual performance is noted down so that it can be compared with standard

performance. The comparing process is an evaluation whether the outcome of actual

performance can be accepted or rejected. If the outcome is not lying near the standard

performance outcome, then managers may not consider it. This is because the outcome

does not fall under an estimated parameter. This range of variation results are hard to

determine so an acceptable range is being considered.

4. Analyzing deviation:

The deviations are analyzed means the outcome of actual performance is being studied. Not

all outcomes are examined, only those that did not meet the standard. As mentioned, the

range of variation is unpredictable, the unacceptable parameters are eliminated for being

unmatched. Managers would like to determine why such deviation occurred. Firstly, the

setting the standard performance could be high that caused deviation. Secondly, in the

deviation whether control more is needed be put or not. Lastly, if the standard is changed

will there be a different impact.

5. Taking corrective actions:

After analysis of deviation, managers can take three actions in the process such as not

changing performance, precise the actual performance or review the standard performance.

When managers take initiatives to correct actual performance, they can either identify the

problem or take alternative actions that are suitable. However, managers need to crucially

decide whether to make an immediate corrective action or basic corrective action. The

immediate corrective action means the performance will be corrected immediately to get

back on track whereas basic corrective action means acknowledging the problem. Effective

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 managers take time to analyze the difference and correct the problem. Moreover, while

revising the standard if it is thought to be unrealistic, then there is no need to change

performance instead take corrective action. Managers need to confirm at that time whether

meeting the goal is easy or hard. If the standard is realistic, then employees should improve

on their strategy and take necessary corrective action to meet the goal.

3. TOOLS FOR MEASURING ORGANIZATIONAL

PERFORMANCE IN TERMS OF CONTROLLING MECHANISM

Controlling mechanism is used in many areas of the organization. Sometimes, in each and

every level of organization as well. It can be classified based upon many things as many writers

have defined and classified controlling in different ways. Sometimes based on the process,

areas, levels etc. So, now it’s time to discuss the different classifications of controlling based

on different factors. Specially, types of control, areas of control, levels of control.

3.1 Types of Control

Every organization must have to go through under a process, where it produces outputs from

inputs by following a process. Management can implement controls before and activity starts,

while the activity is going on and after the activity has been completed. So, according to the

timing or place in the production cycle, we can classify controlling in 3 categories. They are:

a. Feedforward Control

b. Concurrent Control

c. Feedback Control

The details of these 3 categories are given below:

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 According to timing
/place in production
process

Feedforward
Concurrent Control Feedback Control
Control

a. Feedforward Control: In a process the input is very important. As without quality

input, no organization can produce quality output. So, the organization must maintain

a quality while purchasing the input. Because if the input doesn’t meet the proper

criteria, then the product quality will fall and as a result, the customer will be

dissatisfied. This control takes place before the actual activity. This control focuses on

the resources that flow into the organization. Here the organization must set some rules,

regulations and protocols to prevent the possible problems. So, this is the managerial

action taken before any problem that can happen. As a result, we don’t have to take

corrective actions if the problem occurs which not only saves our time but also the

efforts and damage. But, unfortunately, we can’t get the accurate needed information

all the time, which creates a barrier to take the prevention activity before anything goes

wrong. That’s why the manager has to rely on the other two control mechanisms. It is

also known as “Preventive Control” or “Preliminary control”.

Concurrent

PROCESS

INPUTS OUTPUT

Feedforward Feedback

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For example, before hiring the employees, set all the criteria to hire the employee. Setting the

criteria, identifying where problems can occur and plan accordingly, this is known as

feedforward control.

b. Concurrent Control: It’s not mandatory or certain that every time the manager will

take the preventive measures at the very beginning of the process. Sometimes, problems

might occur when the process is ongoing. So, concurrent control involves the

regulations that are taken when the process is ongoing. It is done to check if the

organizational standards are conformed or not. It is a mandatory control in production

houses as they need to check if the quality is conformed or not. There are some

checkpoints in the process, where if the standards are not matched, corrective actions

must be taken. Again, if the manager sees the process is not going well, they can fine-

tune it as well. The constant monitoring of material quality and closely watching the

assembly line, helps the organization to produce lower or no substandard products. This

type of control is not appropriate in the places, which belong to ambiguous, innovative

and creative environments. The other names of concurrent control are “Screening” or

“Yes-No control”. This control is done by the first line managers who can deal with the

problems faster before the problem becomes too costly to handle. Again, the manager

has to keep close contact with the employees so that he can keep track of what’s going

on, that is why this control is known as management by walking around.

For example: While the interview is going on to select new employees, if any problem occurs,

such as shortage of assessment center room, quickly arranging one is the concurrent control.

c. Feedback Control: The most used control mechanism in almost every sphere of the

organization. It might be for a small project or a large objective achievement. This

control takes place after the activity is done. It is done in order to ensure that the final

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 output meets the organizational goals and objectives. It is done when feedforward or

concurrent controls are impossible to achieve or are not feasible or too costly. It will

help the manager to plan for the next session more successfully. Feedback makes the

manager confident to plan further, compare the plan and see the result if it’s worth it or

not. Again, feedback can enhance the motivation which helps the performer to be more

active and work harder. Most of the managers prefer this control more than concurrent

and feedforward control. This is also known as “Post Action Control” or “Output

Control”

For example: After the whole selection process give feedback about the whole process for

future improvement.

Multiple Control Systems: It is the combination of any two or three of the above. When a

process goes on, the manager has to take all the necessary steps before starting the process,

during the process, there might some problem arise, then the manager has to take the concurrent

controls and finally after the whole process, the manager will gain some information which

will help the manger to plan again properly and learn from the mistakes.

So, it’s not mandatory that the manager can follow only one control mechanism, rather a

manager can follow any one, two or all the three mechanisms to control the production process

of an organization.

Managerial Approaches to Implement Controlling Mechanism: There are some control

approaches that are taken by the management, when they are confused to focus on what types

of control. Those control mechanisms are:

a. Market Control

b. Bureaucratic Control

c. Clan Control

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 Managerial
Approaches to
implement controlling
mechanism

Market Control Bureucratic Control Clan Control

a. Market Control: It involves the use of price competition to evaluate the output.

Manager compares profits and prices to determine the efficiency. But in this market

control, there must be a reasonable level of competition. But it is not applicable in the

functional departments.

b. Bureaucratic Control: It consists of rules, policies, hierarchy, written documentation,

and other formal mechanisms that influence and manipulate employee’s behavior and

assess performance.

c. Clan Control: It is the opposite of bureaucratic control. It mainly focuses on the values,

beliefs, corporate culture, shared norms, to regulate the employee’s behavior.

Organizations that use clan control, they build trust among the employees. The goal of

clan control is to gain the employee commitment.

Sometimes, the bureaucratic and the clan control falls under the structural control.

3.2 Areas of Control

The organization has to deal with many areas. There are 6 areas, in which the organization

needs to control to actively operate in the market. Here, area mainly indicates the resources

that are used as a vital part of the organization. There are 4 basic types of resources that the

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organization has to focus more on. As using the resources properly will help the organization

to be more objective oriented. The resources are:

a. Physical Resources Control

b. Human Resources Control

c. Information Resources Control

d. Financial Resources Control

e. Culture Control

Physical Resources Human Resources Information

Control Control Resources Control

Financial Resources
Culture Control
Control

a. Physical Resource Control: In this control, the manager has to look after all the

physical resources such as: buildings, equipment, machineries; all the tangible products

that are either compulsory or complementary to carry on the supply chain effectively

and efficiently. If any physical resource acts wrongly, the company might have to face

a great loss as well. The loss mainly depends on many things such as timelines, quality,

quantity, client requirements etc.

b. Human Resource Control: Human resource is the unique resource of any

organization. It is said that the companies can copy each and everything of a renowned

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 company, but they can’t imitate the human resource. So, the more the company takes

care of its human resource, the stronger the company will be. So, at the very first level

of hiring, the company should set some criteria, based on which they will hire the

employees. There they can include personality tests, drug tests, assessment center for

judging the candidate with different skills and abilities. Again, after hiring, the

employee will have proper training and development scopes, their performance

evaluation which can be annually, half yearly, quarterly even monthly as well. The level

of job satisfaction, employee engagement will be measured. Even the employees will

be assessed for their leadership quality as well. So, from the very beginning of the career

till the retirement, the managers have to take all the necessary controls to make one of

the best pool of employees for future, who will lead and do the same with the upcoming

one.

c. Information Resource Control: There is no escape from information in business. The

manager has to deal with tons of information regularly coming through different

mediums. So, the manager must have the ability where to pay more attention, where

not to. Because, at the end of the day, the manager will be responsible for all the deeds.

The manager has to prepare a production schedule, forecast the sales, think about the

profit of the business as well as the environment, how to handle the cash, the payment

period, the debt, the advertising etc. He must have knowledge about the whole supply

chain. He must act as monitor, disseminator and spokesperson when needed. There

must be good communication between each and every subunit, units which will ensure

information availability and that will lead to an uninterrupted supply chain.

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d. Financial Resource Control: “Finance”, a big issue in every sphere of our life. In

business, it’s the same. Arranging finance and managing it is a very tough job to do.

Most of the businesses struggle for not being able to manage the finance properly.

Under this control, all the things that are related to finance is included such as: how to

arrange the finance, debt or equity, what will be the cost, how much should be the profit

margin, how much should we spend in every department, break-even point of the

business, the cash on hand, debt payment period, how to pay the bills etc. It’s not

mandatory to follow a single strategy for a long time, rather based on the seasons, sales,

debt ratio, all the things will vary. So, the manager must have to understand the things

and plan, make decisions accordingly so that he can handle the finance efficiently and

save the organization from being disappeared.

e. Culture Control: Culture is not a resource but it is one of the most important parts of

an organization. A culture is mainly “the way of doing things by ourselves”. The culture

can be strong or weak, but it will definitely have an effect. The organization should

follow a strong culture as here values are strongly shared, every employee has a friendly

work environment and they feel a strong connection which is reflected in their

behaviors and attitudes. The top managers must create this culture, hire like-minded

people who can easily adapt the situation and lead the employees to do the same, when

they will become the leaders. If possible, the organization which follows weak culture,

the manager can take the initiative to change the culture by taking some small steps

towards strong culture. They can influence the work process, give more authority,

autonomy, less centralized etc.

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3.3 Levels of Control

Let’s discuss the primary types of organizational control, which is called the level of control.

We know, there are three levels of management and four levels of organization. There are three

types of primary types of organizational control based on the level of management. They are

not separate entities in fact indistinguishable from each other. They are:

a. Strategic Control

b. Management Control

c. Operational Control

Strategic Control

Management Control

Operational Control

a. Strategic Control: The process of evaluating the strategy. This process is done twice,

first time after the strategy is formulated, secondly, after the strategy is implemented.

It is all about tracking the strategy to detect any problems, or to identify the potential

problem areas. Ordinarily, there is a time span between initially implementing the

strategy and achievement from this strategy. During this period, many projects, actions

are undertaken and investments are made to implement the new strategy. Strategy might

go through some changes due to the dynamic environment. So, taking necessary steps

to control the situation is called strategic control. Henry Mintzberg, one of the foremost

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 theorists in the area of Strategic management, tells us that no matter how well the

organization plans its strategy, a different strategy might emerge. This control helps the

managers to keep a track if they are moving through the right path or not. The manager

has to deal with all the external and internal events, many information about own

company as well as competitors. The errors from this type of control are major usually.

b. Operational Control: It is designed to ensure day to day activities which are consistent

with both plan and objective. It focuses on mainly the internal sources of information,

the events which can be usual or unusual. Mid-level management use this control for

intermediate term decisions for 1 to 3 years, when performance doesn’t meet standards.

For example, the operational control can be training, motivation, leadership, discipline

etc.

c. Tactical Control: A tactic is a method that articulates the plan. It focuses on the most

current operation of an organization. The tactical control is done for short a term that

means less than a year. Here the manager mainly handles the day to day work problems

that can be usual or unusual. The actions are made on a regular basis.

So, the strategic control always comes first. Then comes the operational control, lastly the

tactical control.

It’s time to know about some tools and techniques by which organizational controls are to be

done. Tools are mainly used to monitor and measure the organizational objective in broad

sense, organizational performance. Most of the time, we want to measure the performance in a

quantitative approach rather than a qualitative approach. So, financial tools are highly used to

measure the performance and take qualitative/quantitative approaches to fulfill the objective.

There are many tools and techniques used. They are:

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 1. The Balanced Scorecard

2. The Deming Models

3. The Baldrige Models

4. Benchmarking

5. Business Process Reengineering

6. Knowledge Management

7. Management by Objective

8. Total Quality Management

9. Financial Tools

10. Pareto Diagram

11. Scatter Plot

12. Process Mapping

13. Cause and Effect Diagram

It’s not possible for me to cover all the tools that are used as control mechanisms, but I will try

to explain the tools so that it will be easier to get the point quickly.

1. The Balanced Scorecard: Two experts from Harvard Business School have introduced

it. It provides the organization an opportunity to clarify its mission, vision, strategies

and translate them in action. It mainly helps the organization to turn the future in reality.

It helps the managers to look at the organization from four viewpoints/ perspectives.

Learning and growth perspective, business process perspectives, customer’s

perspective and financial perspective. The manager uses this control mechanism mostly

in some specific cases. Such as: when they have to track the degree of objective

achievement and results to ensure the improvement.

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Again, when the top management loses focus to see all the areas due to work pressure which

leads to poor results. Moreover, when the manager receives any irrelevant information which

doesn’t justify the poor results. The main advantage of this control is here the manager can get

a 360-degree view coming from different areas, which helps them to identify the problem and

take corrective measures.

2. The Deming Models: Once upon a time, “Quality Control” or “Zero Defects” were

nothing but two keywords. As people used to put their efforts at the very end of the

production process to verify the product. Deming said that the problems lie actually at

each step of the production process and the problems are occurring mainly for the

variation in work. To remove the problem, he suggested that all the processes should

be a part of a feedback system with chains.

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The feedback will provide information about the problem along with the causes of change. For

example: the pocket of the shirt is not accurate, the problem will lie in the pocket cutting and

sewing department. The manager has to see the process, identify the problem, and know the

reasons. The reason might be the needle. So, as a corrective action, the needles will be changed

and then the pockets will not be defected again. This control is done to improve the chain on a

continuous basis.

3. The Baldrige Models: The Baldrige method is built on facts-based management. The

measurement standards are driven from the strategy and provide critical data and

information about the key process, productivity and results. The data and information

are used for performance measurement and improvement. Performance measurement

standards are developed from measurable characteristics of the products, services,

processes, operations etc. It is mainly creating the benchmarks for each and every

objective.

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Baldrige has identified some important benchmarks such as income from sales of products and

services, customer-based results, financial and market results, the evaluation of human

resources, organizational effectiveness results; corporate social responsibility results.

4. Benchmarking: It is mostly used in each and every organization. It is mainly setting

the standards for comparison with other organizations in order to gain perspective on

organizational performance. It is not an overall comprehensive process rather the results

from benchmark comparisons can be used in the overall process.

It is often perceived as Quality assurance. In short, it is the best practices done by the

competitors that lead to their superior performance.

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 5. Business Process Reengineering: Every organization uses some processes to fulfill

the objective of the organization. Sometimes, due to the existing process the production

might get slower, in that case to increase the productivity the reengineer the process.

Reengineering means redesign the process, by starting over from the ground top.

In this control mechanism, the current process is analyzed, then identified where redesign is

required, then the redesign is done and a 2/ 3 prototype is developed and tested, based on the

best output coming from all the prototype is implemented and monitored.

6. Knowledge Management: Knowledge is very important to bring innovations. The

companies which deal with technology, have a very strong and mandatory department

known as RND (Research and Development). It mainly focuses on the management of

critical knowledge and works on how to use the knowledge for achieving the results

more fruitfully. Its effectiveness towards reaching the goal depends on how well you

are using the knowledge. If you have the knowledge, but you can’t use it properly, you

can never be objectively successful.

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You need to collect the data, make it usable information, use it to enrich the pool of knowledge,

share it with others and assess the future information and then sustain with the knowledge.

7. Total Quality Management: A set of practices that is imposed throughout the

organization to ensure the highest quality of the products and services. It is mainly

applied to production-based firms who do not want to compromise the quality.

In BSRM, in each 15 mins they do the quality check to ensure the strength of their product. In

Garments, they have quality checks in each and every steps of their process.

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 8. Financial Tools: The most used tools for control. All the organization initially starts

this measure to control the organizational outcomes. Financial ratios are calculated

based on the company’s primary financial statements. The most common ratios are:

i. Liquidity ratios- measures the ability to meet the current debt obligation, the standard

is 1.2 to 2.

ii. Leverage ratios- to determine whether the company is able to meet the interest payment

on debt,

iii. Activity ratios- how efficiently the firm is using the assets,

iv. Profitability ratios- how effectively and efficiently the firm is using its assets to generate

profits.

9. Pareto Diagram: Pareto diagram is a bar chart; it is also known as the 80/20 rule. That

means 20 percent of your effort is enough to achieve 80 percent of your result. The bar

represents the cost or defect and the height represents the frequency with which the cost

is incurred. The largest bars are placed left and the smallest one is placed right. It is

easy for the managers to see the areas that needs more focus and the most immediate

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 response. It saves the time and money of the organization by focusing their efforts on

the problem areas that need the most attention.

Usually the manager deals with the top 20 percent defects and the organization will gain 20

percent improved organization performance. The lesser defects can be quickly removed. The

areas which need immediate attention that incur more cost. The manager fixes the areas and

gains improved performance.

10. Scatter Plot: The actual performance is plotted in a control chart. The different spot

represents where the performance of the process was at a particular time. Here a central

spot is identified and based on that spot the process is measured to see if it is under

control or not. A range is also set keeping the central line in between is known as upper

and lower limit.

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In this chart the spots are connected with straight lines to make the ups and downs more visible

and to see the deviation from one spot to another. The spots usually crosses the limits unless

or until there occurs a huge problem. If anyhow cross the limit, the variation is considered as

abnormal, and immediately makes the necessary steps so that it reverts to normal again.

11. Process Mapping: To map all processes, where the steps are defined clearly and the

decision-making points are also identified. This map provides information about the

structure of the process.

It is the graphical representation of a process. Both employee and manager can find the process

mapping as a useful tool as control. Along with visual representation, test write-up is also there.

Process maps make it easy to measure the process and operations as it works as a benchmark.

25
 12. Cause and Effect Diagram: It is known as Fishbone diagram as well. Here, the

managers are supposed to depict the relationship between cause and defects in a system

with proper causes that are the reasons of the defects. This diagram helps the employee

and manager both to identify the deficiencies that might happen and the possible

solutions that can be applied.

For example: If the organization faces a measurement problem, they will solve it by hiring a

machine that can take measures accurately. A cause and effect diagram starts with a problem

statement that clearly defines the defect. Then possible causes are discussed and later on defines

the most important cause that is the main culprit for the defect.

I have tried to include all the control mechanisms that are well known and mostly used in

almost all the organizations. Some organizations use multiple control mechanisms. Well, others

follow one or two initially and later on include other mechanisms.

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 5. SOURCES OF CONTROLLING MECHANISM

4.1 Benchmarking

At present time, there has been an incredible change in innovation due to the fast improvement

of innovation, changing of financial conditions, and the expulsion of borders in trade. With this

change, the significance of information has expanded. In arrange to survive within the market

and to guarantee client fulfillment, companies began to create different strategies.

Benchmarking is one of the strategies created as a result of efforts to change and to be

changeless within the market. Organizations have to be outward-oriented in arrange to

recognize the requirements for change and to provide a component for change. These days,

obtaining data, accessing, and learning data is more vital than storing data, and benchmarking

has been a vital approach for the business management and supply chain of the company.

(Ayşenur Erdil, 2019)

The importance of Benchmarking

Benchmarking is the method through which a company measures its items, administrations,

and practices against its hardest competitors, or those companies recognized as pioneers in its

industry. Benchmarking is one of a manager's best tools for deciding whether the company is

performing specific capacities and exercises proficiently, whether its costs are in line with those

of competitors, and whether its’ inside activities and business processes require advancement.

The thought behind benchmarking is to measure inner processes against an external standard.

It could be a way of learning which companies are best at performing certain exercises and

capacities and after that imitating—or better still, progressing on—their techniques.

In addition benchmarking focuses on company-to-company comparisons of how well

fundamental functions and forms are performed. Among numerous conceivable outcomes, it

may see at how materials are acquired, suppliers are paid, inventories are overseen, workers

27
are trained, or payrolls are prepared; at how quick the company can get new items to showcase;

at how the quality control work is performed; at how client orders are filled and transported;

and at how support is performed.

Moreover, benchmarking enables managers to decide what the finest practice is, to prioritize

openings for change, to upgrade execution relative to client desires, and to leapfrog the

conventional cycle of change. It moreover helps managers to get the foremost exact and

productive means of performing an activity, to memorize how lower costs are really

accomplished, and to require activity to progress a company's cost competitiveness. As a result,

benchmarking has been utilized in numerous companies as an instrument for getting a

competitive advantage. (Koch, n.d.)

The Benefits of Benchmarking

Benchmarking may be a common practice and sensible exercise to set up baselines,

characterize best practices, recognize enhancement openings, and make a competitive

environment inside the organization. Joining benchmarking into an organization will result in

important data that energize discussion and sparks modern ideas and practices. At its best, it

can be utilized as an instrument to assist companies in evaluating and prioritizing advancement

opportunities. (Competitive Solutions Inc., n.d.)

Some significant benefits of benchmarking are:

▪ Improved Quality: Benchmarking helps organizations to persistently move forward

the quality of their items & services. Organizations observe the current standard and

after that attempt to surpass that.

▪ Better performance: Benchmarking helps organizations overcome complacency.

They persistently endeavor to move forward their execution benchmarks in arrange to

remain important within the market.

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 ▪ Cost efficiency: Benchmarking gives organizations important information on the last

technology, and forms followed within the business environment. These are pointed at

expanding efficiency whereas diminishing cost. For example, a manufacturing

company might learn about a certain machine utilized by its competitor, which can do

the work for five laborers. This company might too embrace comparable innovation to

lower its labor cost.

▪ Prioritizing areas of improvement: Whereas organizations understand the

significance to develop persistently, they may be uncertain at times about where to

begin the enhancement from. Benchmarking helps organizations to recognize the areas

where the gap between their standard and that of the industry is the largest. This makes

a difference for organizations to prioritize the ranges that they have to be work on.

▪ Leveraging strength areas: Benchmarking can moreover toss light on the regions

where the organization is doing much better than what is watched within the

advertising. Having this data can offer assistance to organizations to move forward.

(InspireOne , 2016)

Primary Classifications of Benchmarking

Though there are many forms of benchmarking, it can be classified in three categories, those

are:

1. Internal Benchmarking: Internal benchmarking is utilized when a company as of

now has built up and demonstrated best practices and they basically have to share

them. Again, depending on the estimate of the company, it may be huge enough to

speak to a wide extend of performance (i.e., cycle time for opening new accounts

in branches coast to coast). Moreover, internal benchmarking may be fundamental

in the event that comparable businesses are not promptly accessible.

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 2. Competitive Benchmarking: Competitive benchmarking is utilized when a

company needs to assess its position inside its industry. In expansion, competitive

benchmarking is used when a company ought to distinguish industry administration

execution targets.

3. Strategic Benchmarking: Strategic benchmarking is utilized when recognizing

and analyzing world-class execution. This frame of benchmarking is utilized most

when a company has to go exterior of its claim industry. It guarantees that all

representatives are learned approximately the vital course of the company. Inside a

company’s plan, objectives are built up relative to benchmarks set by world-class

organizations. Frequently, these benchmarks are gotten from exterior businesses.

(Stroud, n.d.)

4.2 Characteristics of Effective Control

Effective control, whether at the operations, monetary, basic, or strategic level, successfully

regulates and screens organizational exercises. To utilize the control process, managers must

recognize the characteristics of effective control and get it how to distinguish and overcome

periodic resistance to control. (Griffin, 2013)

The eight major characteristics of effective control system are: (Sharma, Effective Control

System: 8 Major Characteristics | Management: BUSINESS MANAGEMENT IDEAS, n.d.)

1. Integration with planning: Control should be connected with planning. The more

explicit and exact this linkage, the more viable the control framework is. The most

perfect way to integrate planning and control is to account for control as plans create.

In other words, as objectives are set amid the arranging process, consideration should

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 be paid to creating measures that will reflect how well the arrangement is realized.

(Griffin, 2013)

The activity plans and useful techniques accept noteworthiness in execution and

measurement. Existing activity plans, useful methodologies, measured execution and

comparisons of execution with guidelines at that point influence the upgrading and

adjustment of future plans.

Finally, choices around whether to preserve or alter objectives and procedures are

influenced by past adjustments and upgrades, by comparisons between measures and

execution, and by assessments and activities taken inside the control framework.

At the beginning of the method, planning plays a major part in forming the control

framework but by the conclusion of the method, in any case, the afterward stages of

control apply an essential impact of planning. (Sharma, Effective Control System: 8

Major Characteristics | Management: BUSINESS MANAGEMENT IDEAS, n.d.

2. Flexibility: The control system itself must be flexible sufficient to oblige the change.

Consider, for a case, an organization whose different item line requires 75 distinctive

crude materials. The company’s stock control framework must be able to oversee and

screen current levels of stock for all 75 materials. When alter in item line changes the

number of crude materials required, or when the specified amounts of the existing

materials alter, the control framework ought to be adaptable sufficient to handle the

reexamined prerequisites. The alternative— planning and actualizing a modern control

system—is an avoidable cost. (Griffin, 2013)

3. Acceptance by Members of the Organization: The effectiveness and proficiency of

controlling generally depend on the acknowledgment by the individuals of the

31
 organization. Doing the correct thing and doing things right both require individuals;

controls are improbable to work unless individuals need them. In case controls are to

be acknowledged, it is vital that individuals get the reason for the framework and feel

that they have a vital stake in it, more so when new frameworks are established. People

resent controls, particularly those considered excessive. Excessive controls make the

impression that individuals are not treated to act on their own. Both as well as numerous

and as well few controls can lead to dissatisfaction and the need for motivation.

Controls that show up to be self-assertive or superfluous can have a demoralizing

(harming) impact on the workers. Additionally, at times the measures set by the

management may be seen as being outlandish or unfair. (Sharma, Effective Control

System: 8 Major Characteristics | Management: BUSINESS MANAGEMENT IDEAS,

n.d.)

4. Focus on Critical Activities: Managers should control proper activities. When

individuals recognize that certain particular ranges will be checked and compared to a

few standards, their behavior is likely to be channeled toward the guidelines set.

Critical control regions (focuses) incorporate all the regions of an organization’s

operations that specifically influence the success of its key operations such as deals,

income, costs, stock levels, faculty turnover, security for individuals and other

resources, etc. Furthermore, each manager will have his (her) own critical areas to

control. The center should be on those regions where disappointments cannot be

endured, and the costs in time and cash are excessive. It may also be recognized that

the administration should habitually adjust control frameworks to guarantee that

controlling one action does not cause another to urge out of control. For case, to meet

the generation benchmark a supervisor may strain machinery and equipment.

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 Likewise, a sales manager may cut costs radically to reach the deal quantity for his

division; unless he is working beneath a benefit standard (limitation), coming to the

deals standard, in itself, isn't necessarily good. Hence it is fundamental for directors to

guarantee that there's the right balance of activities within the framework. (Sharma,

Effective Control System: 8 Major Characteristics | Management: BUSINESS

MANAGEMENT IDEAS, n.d.)

5. Timeliness: Another characteristic of an effective control framework is that it gives

performance data in a convenient way. Timeliness does not essentially mean quickness.

Or maybe, it portrays a control system that gives data as frequently as is essential.

(Griffin, 2013)

For control to be successful, it must report deviations in time to permit the

administration to require corrective activity. Timely information, like exact data, must

be given to those in charge to create controls compelling. Giving managers excessive

or insignificant information is as serious an issue as is insufficient information.

The reason for MIS is to assemble, amass, and interpret information, handling it into

convenient and exact data that gets to those who require it. For occurrence, budget

printouts are accommodating only when the suitable manager gets them in time.

(Sharma, Effective Control System: 8 Major Characteristics | Management: BUSINESS

MANAGEMENT IDEAS, n.d.)

6. Economic Feasibility: Control benefits should exceed costs. In other words, control

ought to be cost-effective. Hence the costs of the control framework got to be weighed

against the benefits it can return. Costs of control include the following factors:

(1) Observing and handling systems — such as computers and cash registers;

33
 (2) Personnel to function the system—such as stock controllers, examiners, and

accountants—as well as supervisors and line staff and outfitting point by point

data to them — such as cost, scrap, generation, and faculty reports. The

resources that will have to go through may not return an equal or bigger sum so

as to legitimize control in a few cases. (Sharma, Effective Control System: 8

Major Characteristics | Management: BUSINESS MANAGEMENT IDEAS,

n.d.)

7. Accuracy: Managers make surprisingly a huge number of choices based on the wrong

data. Field representatives may fence their sales estimates to create themselves see

superior. Generation supervisors may cover up costs to meet their targets. Human

resource managers may overestimate their minority selecting prospects to meet positive

activity objectives. In each case, the data that other managers get is wrong, and the

results of wrong data may be very sensational. If sales projections are expanded, a

manager might cut advertising (considering it is now not required) or increment

promoting (to assist construct force). So also, a production manager unconscious of

covered up costs may cite a deals cost much lower than alluring. Or a human assets

manager may talk out freely on the adequacy of the company’s minority selecting, as it

were to discover out afterward that these prospects have been overestimated. In each

case, the result of the wrong data is improper administrative activity. (Griffin, 2013)

8. Ease of Understanding: The control process should be straightforward so that it can

be effortlessly understood and connected. Complexity regularly implies a need for

understanding. Controls regularly ended up complex since different people are

dependable for making, executing, and interpreting them. Overlapping authority is

34
 likely to cause perplexity and pointless duplication or increase of effort. Complexity

can moreover result when control users center on the mechanics and procedures of

control to totally disregard the purposes of controls. This ordinarily happens when one

control leads to another.

Moreover, refinements in announcing strategies frequently lead to extra controls and

more control strategies. The result could be a tremendous collection of information,

which may cloud the purposes behind the controls and to divert control endeavors.

(Sharma, Effective Control System: 8 Major Characteristics | Management: BUSINESS

MANAGEMENT IDEAS, n.d.)

4.3 Overcoming Resistance to Control

Managers in some cases make the mistake of accepting that the esteem of a compelling control

system is self-evident to workers. Numerous workers resist control, particularly in the event

that they feel over-controlled, in case they think control is improperly focused or rewards

wastefulness, or in case they are awkward with responsibility. (Griffin, 2013) There are

multiple ways to overcome resistance to control. Such as:

• Create Effective Controls: The most ideal way to overcome resistance to control is to

form effective control, to start with. In case, control systems are legitimate coordinates

with an organiza­tion’s arranging system and if the controls are, hence, adaptable,

precise, opportune, and objective, the organization is impossible to drop prey to the

issues of over-control, inaccurate center, or fulfilling inefficiency. Furthermore, those

workers who fear responsibility most will maybe be held responsible for their destitute

performance. (Sharma, Overcoming Resistance to Control: 4 Ways | Management:

BUSINESS MANAGEMENT IDEAS, n.d.)

35
• Encourage Employee Participation: Participation can offer assistance to overcome

resistance to change. By the same token, when workers are included in the planning

and executing the control framework, they are less likely to stand up to it. (Griffin,

2013)

• Utilizing MBO: Management by objectives (or MBO) can too overcome worker

resistance to control. As P.F. Drucker, the originator of the concept suggests: “When

MBO is utilized legitimately representatives offer assistance to set up their possess

objectives or measures. They moreover know in development that their rewards will be

based on the degree to which they accomplish and keep up those objectives and

benchmarks. MBO, at that point, maybe a vehicle for encouraging the integration of

arranging and control.” (Sharma, Overcoming Resistance to Control: 4 Ways |

Management: BUSINESS MANAGEMENT IDEAS, n.d.)

• Develop Verification Procedures: Numerous guidelines and data systems provide

checks and equalizations in control and permit the organization to confirm the precision

of execution indicators. Assume, a production manager contends that she failed to meet

a certain cost standard since of expanded costs of raw materials. A legitimately planned

inventory control system will either support or negate her clarifications. Assume that

an employee who was terminated for intemperate absences contends that he was not

missing “for a long time.” A compelling human resource control system ought to have

records that support the end. Resistance to control decreases since these confirmation

methods secure both workers and administration. In case the production manager’s

claim around the rising cost of raw materials is upheld by the inventory control records,

she will not be held exclusively responsible for falling flat to meet the fetched

standards, and a few activities likely will be taken to lower the cost of raw materials.

(Griffin, 2013)

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 5. RELATIONSHIP AMONG THE FOUR FUNCTIONS OF

MANAGEMENT IN TERMS OF CONTROLLING MECHANISM

There are four basic functions of the management area which are planning, organizing, leading

and controlling. Controlling is closely related to other functions of management because

control can be affected by other functions and may affect other functions too as controlling is

a goal oriented function which sets performance, takes corrective action, analyses deviation,

measures of actual performance and improves employee motivation.

Organizing

Planning Leading

Controlling

The relationship between planning and controlling:

The first function of management is planning. It is concerned to specify the objective and

strategies to achieve the organizational goals. To meet the goal, managers need to develop the

plan inclusive of key organizational values like vision, mission, culture etc. Then they need to

focus on the current situation and define goals and objectives. After that they need to decide

how they will be able to achieve them. Sometimes a plan doesn’t work properly that is why

managers have to make sure of the alternative at the beginning. In the same way they need to

identify all the resources properly. After identifying the resources, they need to establish the

37
task. So, it is the procedure of planning for an organization and without any doubt planning

truly helps to make a person more precise and productive in work. Moreover, Planning and

controlling are interconnected to each other. Some points on how planning and controlling are

interconnected have given below:

• Planning is a prerequisite for controlling. This is why planning should be there so

that controlling can be possible. Otherwise there will be no base to compare

purpose.

• Planning is an intellectual prescriptive function and controlling is the checking and

evaluation of the work. When it comes to planning, it would be based on fact for

which controlling function becomes easier and effective.

• Controlling improves future planning because when managers perform the

function of controlling, they will not make the same mistake which they have made

before.

• Experiences from the past times and the corrective actions which are taken in the

controlling procedure guide the planning very well.

• Planning and controlling are concerned with different things. While planning is

concerned with the standards which are laying down on the other hand controlling

is concerned about actual performance with the standards which are planned.

• If a plan is established without the controlling, it will be completely meaningless.

Because controlling tries to ensure that the events abide by the plans.

38
 • Planning in an organization means looking ahead as it is focused on the future and

controlling in an organization means looking back because it measures whatever

is already done and compares with standards.

The relationship between organizing and controlling:

Organizing is the second key function of management that involves developing an

organizational structure for the people, departments, position and activities within the

organization. It is the process of dividing works into sections and departments. It also creates

the framework needed to reach a company's goals and objectives. Since, organizing increases

productivity and improves the flow of communication between the employees, also, important

for well-defined jobs, specialization, sense of security, effective administration, for this reason

controlling is needed in terms of organizing. Some points on why controlling is needed for

organizing have given below:

• Organizing involves in developing an organizational structure and making the decision

about the structure of an organization whereas controlling helps establish the

performance standards and compares actual performance against standard.

• Organizing also involves dividing the tasks so that participants can be specialized.

Controlling evaluates those participant’s activities.

• Organizing produces a structure relationship in an organization and controlling

monitors that structure. If anything is needed for correction then managers can take the

corrective action by controlling for organizations betterment.

• Organizing is deciding where decisions will be made, who will do what jobs and tasks

and who will work for whom, thus outcomes are controlled by controlling what people

do.

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The relationship between the leading and controlling:

Leading is another basic function of the management process. It is basically managing and

directing people of an organization. A manager manages all work and also has the quality to

lead. They also motivate the employees of an organization and create a positive attitude towards

the work. To have the quality of leading, managers need to have the power of controlling as

controlling is necessary for any kind of leadership. Some points on how controlling is needed

for leading have given below:

• Leading is providing guidance or direction while controlling is having control over a

person or thing.

• Leading the employees in a proper way is a must in organization. Good knowledge,

good communication skill and clear view of organizational goals can help a leader

initiate the first step. And controlling is a primary function so that leaders should

acquire some knowledge before initiating the first step.

• Leading involves the social and informal sources of influences that are used to inspire

action taken by others so that employees can perform well. Controlling involves

ensuring that performance does not deviate from standard.

6. CONTEMPORARY ISSUES IN CONTROLLING MECHANISM

As we know that control is an important managerial function, for this reason, managers use

many strategies to control the employees’ productivity to ensure that they are progressing

towards agreed upon goals and achievements. In a contemporary setting, managers are

concerned about many areas in which they can control the activities of their employees. We’re

40
going to look at six common control issues that managers face today: cross-cultural differences,

workplace privacy, employee theft, workplace violence, customer interactions, and corporate

governance.

Cross-
cultural
Differences

Corporate Workplace
Governance Privacy

Contempora
ry Issues in
Control

Customer Employee
Interactions Theft

Workplace
Violence

1. Adjusting Controls for Cross-Cultural Differences and Global Turmoil:

First of all, control techniques are different for different countries. In global

corporations, international operations managers tend to be less controlled by the home

office, if for no reason other than the distance that keeps managers from being able to

observe work directly. Since distance is a big matter in these cases, it creates a

propensity to formalize controls, such organizations often rely on comprehensive

formal control reports, most of which are communicated electronically.

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Secondly, the impact of technology is a great factor to deal on. If there is a country that

has strong technical support relative to the less developed then the business that has a

good one on its side will certainly rule the market. There are many examples of these

types of cases such as the chances of error will be minimized if one can set a biometry

as standard office attendance. This is why managers in countries where technology is

stronger use indirect control devices for instance, computer work is more trustworthy

to them because it works better and more flawlessly than manual work. This is how the

managers in countries where technology is stronger make sure that the work activities

are going as planned.

Thirdly, managers in foreign countries need to be aware of legal constraints for

corrective action. Because the laws of some countries forbid closing facilities, laying

off workers, taking money out of the country or bringing a new management team

outside the country. Additionally, comparability is another challenge for global

managers in obtaining data for measurement and comparison. For example, a company

that manufactures clothes in Cambodia can produce the same products yet to take

advantage of lower labor costs in Cambodia, they can be more labor intensive than its

Scottish counterpart. This disparity makes it hard to compare like labor costs per unit.

Finally, in the times of global turmoil and disasters, global organizations must have

controls in order to protect their workers, assets and organizations. For example, when

COVID-19 hit the whole world in 2020, corporations scrambled to activate their global

turmoil management plans. That is why every organization should get prepared before

any emergency occurs so that they can protect their organizational assets if any crisis

occurs.

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2. Workplace Privacy:

To maintain workplace privacy, companies are developing and enforcing workplace

monitoring policies. This is why employees must have the authority to monitor the

employee at work. Firstly, web surfing is a great problem which needs to be monitored

at work. Because employees are hired specially to work, not to surf the web checking

stock prices, watching online videos, playing or shopping. As a matter of fact, a survey

shows that 87% of employees are engaged in non-work related and personal website

surfing at work. These things add up to significant costs to businesses.

Secondly, e-mail and computer usage should be monitored for potential offense

materials such as offensive messages or an inappropriate image displayed on a co-

workers computer screen because it can create a hostile environment for which the

organization could be at risk. In the same way employees can do racial or sexual

harassment via e-mail for which managers should do monitoring or keep back-up of

copies of e-mail so that they can know what actually happened by electronic records

and react quickly.

Finally, managers need to make sure that company secrets are not being leaked. By

keeping that in mind, nowadays they are banning camera phones in the office and

monitoring instant messaging which are being done through the organizational

computer or e-mail as they have to make sure that the employees are not even

unknowingly passing confidential information on to others who could harm the

organization by using those information. In short, every organization should have

workplace monitoring policies so that they can control the behavior of each employee.

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3. Employee Theft:

Employee theft is basically stealing or using or misusing an organizations assets

without their permission. It is a very bad thing and can cause an organization to lose a

lot more than money. It can be embezzlement or fraudulent filing of expense reports or

removing equipment, parts, software, or office supplies from company premises.

Different people have different perspectives about why employees steal. There can be

many reasons like employees can have financial-based pressures or vice-based

pressures or they can think that whatever they are doing is correct and appropriate

behavior or so many things. One of the recent example is the murder of the co-founder

“Fahim Saleh” of PATHAO who was killed by his own executive assistant “Tyrese

Devon Haspil”. Haspil used to handle Saleh’s finances. He took this opportunity and

stole tens of thousands dollars from Saleh through PayPal and intuit transfer. When

Saleh found out about this, Haspil killed him. With this in mind, managers need to be

aware of this kind of situation and should educate themselves about this control issue.

For instance, they can use the concept of feedforward, concurrent and feedback control

to reduce employee theft so that they will be able to deal with it at any circumstances.

4. Workplace Violence:

Workplace violence is one of the most common things nowadays and can be seen

everywhere. It is a much broader problem. An incident that has occurred at a San

Francisco UPS warehouse facility in June, 2017 was when a driver in full uniform

opened fire on his co-workers, killing three and injuring five. Thankfully workplace

violence is decreasing day by day. But still it is a serious issue for managers.

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 Since this is a serious issue, managers should use the concept of feedforward,

concurrent and feedback control so that they can identify which actions should be taken

by them.

5. Controlling Customer Interactions:

Customers are the most important factor in an organization. They play a vital role there.

And the most important contemporary issue in controlling is handling customers. Every

organization should remember that the better the customer service, the more successful

that organization will be. This is why managers need to focus more on this issue. To

control this issue, the concept of a service profit can help.

A service profit chain is the chain which creates a link among employees, customers

and profit. According to this concept, the organization’s strategy and service delivery

method affects the way workers deal with customers; that is, how productive they are

in giving service and the quality of that service. Customer expectations of service value

are influenced by the degree of employee service productivity and service quality. It

has a positive effect on customer satisfaction when the service value is high, which

contributes to customer loyalty. And customer loyalty increases the growth and

profitability of organizational revenue.

Since it is an important issue that is why managers need to control customer interactions

by building long-term relationships among the organization, employees and customers.

To make it stronger, they can create a work environment which will enable employees

to provide high quality service so that the employees will feel that they are capable of

providing top quality service. And by getting top quality service, customers will be

more satisfied and loyal by which the growth and profitability will be improved. There

45
 is no better example of this concept in action than Southwest Airlines, which is

consistently rated as one of the best U.S. airlines. This airline organization has a team-

based, enjoyable and inclusive environment with core values which remind their

workers to enjoy their work. They inspire their workers to take pride in their works

which also contributes to long-lasting customer service experiences. In 2011, a famous

example of how Southeast Airlines went above and beyond for their customers took

place. A man booked a last minute flight to see his three-year-old grandson for the last

time. He arrived at the airport 12 minutes after the plane had been scheduled to leave

due to heavy traffic, but the pilot had especially waited for him before taking off.

6. Corporate Governance:

Corporate governance is a significant issue in controlling. Basically, it is a method used

to regulate a corporation in order to protect the interest of corporate owners. It includes

principles of transparency, accountability, and security. The main motive behind

corporate governance is to stimulate compelling, enterprising and reasonable

administration that can help to sustain the long-term achievement of the organization.

In corporate governance, the most important part is the board of directors. Their key

purpose is to have a group, independent from management, looking out for the interests

of shareholders who were not involved in the day-to-day management of the

organization. Apart from that there is also an audit committee that looks at all the

financial conditions and finds any fraudulent activities. Audit committee managers play

a crucial role to control the finance. If the audit committee is strong then it is possible

to forbear the financial scandals.

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 6. RECOMMENDATIONS

There are some recommendations for effective functioning of an organization in terms of

controlling mechanisms. Those are given below:

▪ The administration of any organization must create a control framework custom-made

to its organizations objective and assets. So that they can work efficiently.

▪ Controlling should be positive, realistic, suitable, simple and forward looking so that

managers can respond as needed.

▪ An effective control system should provide correct data which is to be used in future

decision makings regarding vital productions and timely information on deviations.

▪ Control mechanisms should be applied in an effective manner so that the employees

will be motivated. Because in control, the employees' exhibitions are assessed

frequently. Those who appear in great exhibitions are compensated by giving them

advancements, cash prizes, etc.

7.CONCLUSION

In conclusion, it can be said that every function of management is essential for an organization

to reach the highest peak of success. Controlling is one of the most significant functions of

management as it helps to achieve the desired objectives of the organizations efficiently and

ensures that its plans are going in the right direction or have been fully implemented. It helps

to enhance productivity and insight, reduces costs through flexibility, supports changing

industry requirements and also provides immediate access to undertake information. Besides,

to achieve the result, output and culture control can be used. Therefore, managers should

implicate every factor of controlling before making any decisions regarding management and

in order to accomplish the organizational goals, they must coordinate and oversee the work of

47
each of the employees. Thus, it can contribute to the satisfaction of both customers and workers

and achieve organizational goals by which an organization can reach to the level of its success.

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 8.REFERENCES

1. Robbins, P. S, & Coulter, M. (2018). Management. Retrieved from:

https://www.pearson.com/uk/educators/higher-education educators/program/Robbins-

Management-Global-Edition-14th-Edition/PGM1846230.html

2. Griffin, W. R. (2012). Management. Retrieved from:

https://books.google.com.bd/books/about/Management.html?id=iYwJAAAAQBAJ&

printsec=frontcover&source=kp_read_button&redir_esc=y#v=onepage&q&f=false

3. Steelcity97. Six Areas of Control. Retrieved from: https://quizlet.com/134569168/six-

areas-of-control-flash-cards/

4. Lumen Learning. (2020). Levels and Types of Control. Principle of management.

Retrieved from: https://courses.lumenlearning.com/suny-

principlesmanagement/chapter/levels-and-types-of-control/

5. Strategic Management: Determine What To Control. Retrieved from:

https://www.strategic-control.24xls.com/en145

6. Controlling Organizational Performance. Retrieved from:

http://www.zainbooks.com/books/management/principles-of-

management_45_controlling-organizational-performance.html

7. Strawser, B. (2017). 8 More Notable Workplace Violence in 207 – Bryghtpath.

Retrieved from: https://bryghtpath.com/8-more-notable-workplace-violence-

incidents-in-2017/

8. Fiorella, S. 10 Unique Customer Experience Examples & Best Practices to Boost Your

Brand | Sensei Marketing. Retrieved from: https://senseimarketing.com/10-unique-

customer-experience-examples-best-practices-boost-brand/

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