Business Administration-Control

For this session we focused on the management function of control.  What is the importance of control in the work place?  Control enables a manager to prevent negative events from happening and it also enables management to keep staff and groups on track to achieving specific company goals and objectives. 
In order for control to be effective managers must set standards, measure performance against standards, analyse results and give feedback and if necessary correct any mistakes and prevent them from happening in the future.

There are a number of characteristics that should be present to ensure effective control in an organisation.  These are:

• The control system must be understandable
• The control system must be related to decision centres and conform to organisational structure.
• It must identify any deviations/exceptions
• It must identify critical activities
• The control system must have flexibility
• The control system must be consistent
• It must be cost effective
• The control system must be reviewed on a regular basis

In order for the control system to be effectively implemented the following must be present:

• There must be consultation and participation from all employees in the organisation
• Motivation-why should the employees implement/conform toa new control system
• Groups and informal organisation must also be taken into consideration
• Before implementing the control system the organisational structure must analysed in detail
• Leadership styles can have a profound impact on whether a control system is implemented correctly
• MBO

Within an organisation there are two forms of control which are:

• Financial control
• Non-financial control

For this session we will focus on non-financial controls.  Next week we will focus on financial forms of control.

Non financial forms of control

• Gantt Charts

(http://www.ganttchart.com/)

• PERT analysis

Task ID	Task Description	Prerequisites	Optimistic Duration	Most Likely Duration	Pessimistic Duration
1	Build internal components	none	1	2	3
2	Modify roof and floor	none	2	3	4
3	Construct collection stack	1	1	2	3
4	Pour concrete and install frame	2	2	4	6
5	Build high-temperature burner	3	1	4	7
6	Install control system	3	1	2	9
7	Install air pollution device	4, 5	3	4	11
8	Inspection and testing	6, 7	1	2	3

(http://www.waa-inc.com/projex/examples/pert_eg2b.htm)

• Management audits
• Inventory control
• EOQ-Economic order quantity
• Production control
• Quality control (Six sigma and TQM)