Management Control Essay

1164 words - 5 pages

The Process of controlling
Control is one of the most important managerial functions like planning, staffing and directing. Controlling is the measurement and correction of performance in order to make sure that the organizational objectives and the plans derived to them are being accomplished. The basic control process in management is concerned with establishing standards, measuring actual performance against these standards and taking actions to correct the variations from standards and plans.
Controlling is directly related to planning because controlling looks at and ensures whether plans are properly implemented or not. The managers observe what currently happens within ...view middle of the document...

A skillful and forward looking manger would be able to predict probable deviations from standards. If standards are appropriately drawn and means are available for determining what is happening, appraisal of actual or expected performance would be quite easy. But, in the less technical kinds of works, both setting standards and measuring the performance seem to be more difficult. For instance, controlling the work of a finance manager or industrial relations director, it is not easy because definite standards are not easily developed.
Correcting deviations
Standards should reflect various positions in an organizational structure. The manager needs to compare measured performance against already set up standards and take corrective actions to remove or minimize he causes. Management must be able to know and assess where, in the assignment of individual or group duties, the corrective actions need to be implemented. Managers may correct deviations by redrawing the plans or by modifying their goals or correct deviations by exercising their organizing functions through reassignment or classification of duties. It also can be solved by additional staffing by better selection and efficient training or by effective leadership techniques.

Financial statement
Evaluation of financial statement is an imperative method of controlling as it monitors the progress of programs and plans. Common financial statements are balance sheet, income and cash flow statements.
Performance appraisal
It mainly focuses on the performance of the total organization, including its employees, production and other processes and sub systems like departments and projects. Performance appraisal gives opportunity to both employer and employee to communicate their common goals and to assess how well these are achieved.
Operations management
Operation management is the process of specifying a performance standard by comparing to a familiar standard, monitoring and measuring outcomes, comparing these outcomes to the standards and making adjustments where it is inevitable.
Better control towards business success.
The most successful chocolate product within the UK confectionary market is Cadbury which holds around one third share of the UK chocolate market. There are many factors that led to this success, but the very significant one is proper planning about the market, brand expansion, consumer orientation and effective controlling towards these plans. Cadbury used to establish standards for their expected market each year and evaluate deeply the variations occurred at the year end so as to take measure to improve the product quality. Cadbury uses financial statement, performance management and operations management in order to evaluate the targeted market and develop product accordingly.
Master Food and Nestle Rowntree are the next two competitors of...

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