Recommendations of an Effective Control System
Foo Chuan Hui
(Academic Head of United World Business School)
24th November 2011
Introduction Page 2
Different Types of Control System Page 3
Types of Control Page 7
Recommended Control System Page 8
Reasons for choosing the Control System(s) Page 8 Conclusion Page 9
Reference List Page 10
This report seeks to recommend an effective control system to monitor the performance of the students. As the United World Business School is a new private institute who is providing diploma and degree programs in Singapore, so generally there is a need for a control ...view middle of the document...
1. Setting performance standards.
2. Measuring performance
3. Comparing performance against the standards and determining deviations
4. Taking actions to correct problems and reinforce successMeets Standards?
Set Performance Standard
Take Corrective Action
Reinforce and continue work
(Figure 1.1, Bateman and Snall, 2011)
Problems with bureaucratic control
Almost all organization make extensive uses of bureaucratic control as the rules and SOPs are effectively controlling the routine organization activities, and with that, program managers or lecturers can manage by exception and intervene and take corrective action when necessary, but the managers also must be aware that with bureaucratic control, it also does poses some degree of problems as well. Such as reducing the organization’s effectiveness. Firstly, when there are too much rules to follow, decision making for the managers tend to take a long period of time as the manager tends to follow too closely to the rule book and also will affect the manager’s reaction to changing conditions, worst case if there are new and fast competitors emerging. Next, rules constrain and standardize people’s behavior, and people will behave in a predictable way, thus people will be so used to being automatically follow the rules blindly that they stop thinking for themselves. This will reduce the level of learning process, in which the students cannot really improve as the lecturers will stick to the old ways of teaching and not trying out fresh ideas on conducting the lesson(s). New ideas don’t come from following the rules and SOPs strictly; it comes from thinking outside the box.
Treating the organization as they were economic transaction, with the use of price, competition and exchange relationship to regulate activities within the organization. Market control is most effective when tangible output can be identified and a market can be established between the parties to be controlled. The price and profits are determined by the supply and demand when it comes to market control. Price can be negotiated for its exchange when the output of an individual, department or business unit has value to other people, and as a market for these transactions becomes established, two effects occur:
* Price becomes an indicator of the value of the good or service
* Price competition has the effect of controlling productivity and performance.
For large and diversified companies, market control often used to regulate the different independent business units. Particularly in large corporations, that act as holding companies, and are treated as profit centers that compete with one another. The down side of market control when used in corporate level is that employees will be the one suffering. Market control is also useable within departments of the company; it is used to regulate exchange...