Page 209 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Management Control Systems

Notes In the event, the goals are not achieved; the manager will repeat the process. If after repeated
attempt, goals are not achieved, the manager will either alter the performance measures or
reduce his goals. In either case, the performance gap is ultimately closed.

Self Assessment

Fill in the blanks:
3. ………………. has been defined as the “service of communication and control.”
4. ……………………………. has the long-term effect of activating learning in the organization.

10.3 Designing Management Controls

All goal-oriented controls should reflect the basic elements of cybernetic paradigm. But there
are many subtleties to observe in designing effective performance measures i.e., designing
individual controls for an activity. These are being discussed below:
1. The process of establishing control should be established as a constructive exercise not a
punitive one. Use of controls should be to assist people in attaining goals and objectives
for which they are responsible. Controls will be viewed by all participants as ‘fair’,
important indicators of the real purpose of the activity, and ‘constructive’ as to help
people in achieving the purpose of the activity. Standards should be challenging but
attainable. Support for the control should exist in the informal organization, especially
among informal leaders.
2. Objectives should be expressed in measurable terms whenever possible.
3. Control should focus upon the objectives and key results of an activity and should be
limited in number.
4. In establishing controls, we should seek to establish balance among the various aspects of
the activity being controlled.
5. A single individual should be assigned responsibility for achieving desired results for an
objective.

6. True control is achieved as a result of comparing projected performance regarding an
objective to desired results. Comparing actual performance to desired results might be
useful for achieving control in the next period but will not be helpful for achieving control
in the current period.
7. In establishing controls, we should try to identify the early warning predictors of the
variables we seek to control e.g. absenteeism and tardiness may indicate morale problems.
8. It may be possible and desirable to sample the variable that is being controlled. Sampling
may be done by direct observation by walking around or statistically.
9. We should establish the acceptable range of variation for the value of each variable whose
value we seek to control.

10. Reports should focus on exceptions to desired results and be made promptly to the person
who is responsible.
11. The severity of the problem should be confirmed by independent means, The cause of the
problem needs to be identified and corrective action taken. The results of the corrective
action should be monitored and compared to expectations.

204 LOVELY PROFESSIONAL UNIVERSITY