Importance of Control in Business Organizations.

1381 Words6 Pages
Define control and discuss the control process and the importance of control in business organizations. * Define control Management process in which the (1) actual performance is compared with planned performance, (2) difference between the two is measured, (3) causes contributing to the difference are identified, and (4) corrective action is taken to eliminate or minimize the difference Control Process The control process is a continuous flow in Taj between measuring, comparing and action. Naturally Taj follows the four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action. Step 1: Establish…show more content…
Step 2: Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. In Taj computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people. Supervisors have access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic
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