What 6 type of management controls lead to an organization's success? Describe them and provide examples.
An organization can achieve success on greater scale with implementation of various types of management controls techniques. Now , we shall explain some of them:
1) Control of management structure:
If , people will be allocated in a scientific manner in appropriate hierarchy then chances of coordination and control will be minimal . Selecting a suitable and effective structure will be important.
For example, Companies might change its Functional structure to Matrix based on diversification in business portfolios. It will help in controlling the
2) Strategic Control:
In this , planning and other processes must be compared with the immediate competitors in the marketplace. Vision and mission will be defined as per internal capabilities and strengths.
3) Risk control:
Systematic and unsystematic risks associated with business operations can be controlled to some extent by the executives of the organizations. A better planning and trained people can reduce the risk occurring in business.
4) Process Control:
Business owners can see the loopholes in the production system and other existing systems and appropriate methods can be introduced to gain better control over them. For example, Delivery of products were done without authentication at the time of delivery of products but when some fraudulents were noticed then Amazon started verifying the customers through ID proofs and biometric tools.
5) Performance management controls:
It helps in addressing the concerns related to investment and return in various activities of organization. Employees performance , departmental wise performance assessment etc. may be seen and evaluated . For example, If , all the major territory will be assigned some target then in the end of the time period, actual performance will be measured against the set standards.
6) Financial Control:
Every organization must carefully plan and see the level of progression. Portfolios management and management of cost of capital must be controlled through need assessment of expenses and activities to be performed.
What 6 type of management controls lead to an organization's success? Describe them and provide examples.
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