Briefly discuss the criteria for effective control.
There are five criteria for effective control. In designing a control system, one must make sure that it measures what is important now and what is important in the future, not what is important in the past. Firstly, the systems must be related to organizational strategy. In designing a control system, one must make sure that it measures what is important now and what is important in the future, not what is important in the past. Multinational corporations often find it useful to maintain a centralized, integrated system of controls consistent with the strategic orientation of the organization. For example, General Motor maintains a number of units that are interdependent through each of the sequential steps in the manufacturing process, therefore, General Motor must have control systems that ensure that production processes are not disrupted. Secondly, use all steps in the control process. To be effective, a control system must employ all steps in the control process. Standards of performance must be set, measurements of actual performance taken, comparisons of standards with actual performance made, and when necessary, corrective action taken. For example, in our life, for a grade A in our management course, suppose we never bothered to check our posted grade on the midterm exam. In this case, our control system would be incomplete. Without knowing our midterm exam score, we would not compare our performance with our standard. Thirdly, be composed of objective and subjective measures. Effective control systems typically require managers to blend quantitative (objective) and qualitative (subjective) performance measures. For example, management may have set specific targets for productivity. This performance goal has a precise formula for measurement. In the same situation, management has also expressed a desire to achieve high levels of worker satisfaction. Forth, be timely in feedback reporting....
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