Question

Question 1 Explain four functions of the control process.

Answer 1

Ans 1:

Control, or controlling, is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.

Steps of the control process:

1.Establishing standards and methods for measuring performance.

2.Measuring the performance.

3.Determining whether performance matches the standard.

4.Taking corrective action.

Functions:

1. Control is a continuous process and is a management process.

2.Control is forward looking and is closely linked with planning

3. Control is a tool for achieving organizational activities.

4. Control compares actual performance with planned performance and points out the error in the execution process.

5.Control minimizes cost and saves time.

Ans 2:

Diagram illustrating control process:

Ans 3:

Characteristics of an effective control system are:

• Control is a continuous process
• Control is a management process
• Control is embedded in each level of organizational hierarchy
• Control is forward looking
• Control is closely linked with planning
• Control is a tool for achieving organizational activities
• Control is an end process
• Control compares actual performance with planned performance
• Control point out the error in the execution process
• Control minimizes cost
• Control achieves the standard
• Control saves time
• Control helps management monitor performance

Ans 4:

Main areas of control are:

Physical resources:

Control includes inventory management, quality control and equipment control.

Example- inspection in building constructions for quality aspect.

Human resources:

Control includes selection and placement, training and development, performance appraisal and compensation.

Example - recruitment in campus placements of college.

Information resources:

Control includes sales/marketing forecasting, environmental analysis, public relations, production scheduling and economic forecasting.

Example- sustainable use of resources as preserving them for future generation.

Financial resources:

Control involves managing the organizations debt, cash flow and receivables/payables. Control of financial resources may be the most important control of all.

Example- accountants managing all cash flows in a bank.

Ans 5:

Four levels of ethical questions in business are:

Societal: At the societal level, we ask questions about the basic institutions in a society. The problem of apartheid in South Africa was a societal-level question: Is it ethically correct to have a social system in which a group of people – indeed, the majority – is systematically denied basic rights?

Stake holder: The second kind of ethical questions concerns stakeholders – suppliers, customers, shareholders, and the rest. Here we ask questions about how a company should deal with the external groups affected by its decisions, as well as how the stake holders should deal with the company.

Internal policy: A third category of ethics might be called ‘internal policy” Here we ask questions about the nature of a company’s relations with its employee. What kind of employment contract is fair? What are the mutual obligations of managers and workers?

Personal: Here we ask questions about how people should treat one another within an organization. Should we be honest with one another, whatever the consequences?