Chapter 16, Problem 1UTC

Summary Introduction

To Determine:

The meaning of control and to provide the six reasons that makes it necessary.

Introduction:

Any organization has some goals that are preset. It is against these goals that its performance is to be compared.

Answer to Problem 1UTC

Solution:

The process of comparing the performance of employees of an organization against predetermined goals is called control. It helps identify irregularities, work with complexities, reduce costs, result in better teamwork, identify new growth areas and to easily adjust to changes.

Explanation of Solution

Control – Any organization has its own set of goals that are predetermined. The process of identifying these goals of the organization and observing the performance of their employees and contrasting them to the goals in order to facilitate corrective measures as needed is called control.

There are several reasons why control is needed. Some of them are explained below:

1. To identify irregularities – Some irregularities or issues like reduced productivity, employee turnover etc, can be watched and corrected by control, thereby increasing the efficiency of the employees.
2. Work with complexities − With organization growth, the levels within the organization will also increase. This implies that the product lines and production lines increase to different levels. With control, managing these levels and coordinating between these complex levels can be handled in a better manner.
3. Reduces costs – With control, the management can now compare against the standards set for a particular activity, and so this could help them cut costs wherever feasible and improve the productivity.
4. Better team work − At each level of the organization, control varies. With control, the management can now delegate the decision making capabilities to the lower levels to a certain extent. This thereby results in more co-ordination amongst the employees within and across different levels in the organization and leads to improving the team work.
5. Identify new openings − With time, the choices and preferences of the customers also keep varying and so does the cost of the materials. So the organizations can predict such new openings and areas for their development. Control facilitates organization to modify their paths to conquer the new openings and opportunities available for them.
6. Easily adjust to changes − Organizations need to handle a lot of changes in terms of technology, finance, government rules and regulation, etc. Control helps organizations to cope up with the changes happening.

Conclusion

Hence, the meaning of control and the six reasons that makes it necessary for an organization have been discussed.