Management As a control system. Management Information System MIS
Management As a control system.
Planning, organizing, staffing, directing and controlling are the various steps in the management process. All steps prior to a control are necessary but are not necessarily self assuring the results unless it is followed by a strong control mechanism. Management experts have viewed these steps as management control system.
Control, is the process through which managers assure that actual activities conform to the planned activities, Leading to the achievement of the stated common goals. The control process measures a progress towards those goals, and enables the manager to detect, the deviations from the original plan in time to take corrective actions before it is too late.
|A Typical Control Process|
The management is a systematic effort to set the performance standards in line with the performance objectives, to design the information feedback systems, to compare the actual performance with these predetermined standards, to identify the deviations from the standards, to measure its significance and to take corrective actions in case of significant deviations. This systematic effort is undertaken through the management control system.
A reliable and effective control system has the following features :
- Early warning mechanism : This is a mechanism of predicting the possibility of achieving the goals and standards before it is too late and allowing the manager to take corrective actions.
- Performance Standard : The performance standard must be measurable and acceptable to all the organizations. The system should have meaningful standards relating to the work areas, responsibility, managerial functions and so on.
- Strategic controls : In every business, there are strategic areas of control known as the critical success factors. The system should recognize them and have controls instituted on them.
- Feedback : The control system would be effective, if it continuously monitors the performance and sends the information to the controls for action. It should not only highlight the progress but also the deviations.
- Accurate and timely : The feedback should be accurate in terms of results and should be communicated in time for corrective action.
- Realistic : The system should be realistic so that the cost of control is far less than the benefits. The standards are realistic and are believed as achievable. Sufficient incentive and rewards are to be provided to motivate the people.
- Information flow : The system should have the information flow aligned with the organization structure and the decision makers ensure that the right people get the right information for action and decision making.
- Exception Principle : The system should selectively approve some significant deviations from the performance standards on the principle of management by exception.