What is management control?
We explain what control in administration is and what are the phases of the control process. In addition, the types of administrative control.
What is management control?
In the administration sciences , there is talk of control to refer to one of the main administrative functions , together with planning, organization and management, which has the task of ensuring that the actions of the organization are carried out according to planned, or evaluate the effectiveness of the results obtained, that is, its degree of proximity to the expected ideal.
Administrative control dynamics usually involve obtaining information regarding the business process and results , and applying the corrections that are relevant to amend errors and maximize efficiency .
It is a feedback mechanism of the organizational system that depends to operate on the three previous steps, especially planning, a stage where expectations and goals are set . In theory, an organization whose processes and results are more in line with what is planned will be much more efficient than another that leaves the lane.
Thus, the control processes allow not only to measure the organizational performance , but also to establish precisely the quality standards suitable for it, and also to evaluate and take the pertinent corrective measures.
The appropriate control process , in this sense, must be economical, flexible and preventive, but also, as we have said, it must respond to the organizational objectives set.
Control process (phases)
The phases of the control process tend to be the following:
- Phase 1: Set standards . In this initial phase the measurement or evaluation parameters are refined and defined, without which it would be impossible to know how well or badly the product comes out. This implies four types of standards: quantity (production volume, stock quantity, etc.), quality (accuracy, product achievement), time (production times) and costs (cost of sales, production costs , etc.).
- Phase 2 : Performance evaluation . The actual measurement of organizational processes.
- Phase 3: Performance comparison . The expected margins of performance are checked against those obtained, compared with the initial standards to determine the margin of success or error.
- Phase 4 : Corrective Action . A report is prepared that records all of the above and throws the necessary actions to improve or refine the process, such as determining how high the business structure is the problems and what are their possible solutions.
Types of administrative control
There are the following types of administrative control:
- Precontrol or precontrol . By being prior to the action, they ensure that it responds to the planned (human, material and financial) resources. This involves identifying budgeted financial expenses, anticipating the activities to be carried out and anticipating what it will cost to carry them out.
- Management or direction control . They are known as advance controls or cyber controls, and they monitor the course of organizational processes before they are finished, to have time to take action or force a route change. These controls only work if you have adequate feedback.
- Current control . This control is carried out throughout the business process, that is, at the same time as they are going, by the hand of managers or the operating personnel themselves.
- Back control . They are carried out after the end of the productive action and are given retrospectively, evaluating the entire route and drawing the pertinent conclusions of what went well and not so much. Then a report is collected that serves for future efforts and to reward or encourage workers .