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Robert J. Mockler's definition of control points out the essential elements of the control process:
Types Of Control
Management can implement controls before an activity commences, while the activity is going
on, or after the activity has been completed. The three respective types of control based on
timing are feedforward, concurrent, and feedback.
Feedforward Control
Feedforward control focuses on the regulation of inputs (human, material, and financial
resources that flow into the organization) to ensure that they meet the standards necessary for
the transformation process.
Feedforward controls are desirable because they allow management to prevent problems rather
than having to cure them later. Unfortunately, these control require timely and accurate
information that is often difficult to develop. Feedforward control also is sometimes
called preliminary control, precontrol, preventive control, or steering control.
However, some authors use term "steering control" as separate types of control. This types of
controls are designed to detect deviation some standard or goal to allow correction to be made
before a particular sequence of actions is completed.
Concurrent Control
Concurrent control takes place while an activity is in progress. It involves the regulation of
ongoing activities that are part of transformation process to ensure that they conform to
organizational standards. Concurrent control is designed to ensure that employee work activities
produce the correct results.
Since concurrent control involves regulating ongoing tasks, it requires a through understanding
of the specific tasks involved and their relationship to the desired and product.
Concurrent control sometimes is called screening or yes-no control, because it often involves
checkpoints at which determinations are made about whether to continue progress, take
corrective action, or stop work altogether on products or services.
Feedback Control
This type of control focuses on the outputs of the organization after transformation is complete.
Sometimes called postaction or output control, fulfils a number of important functions. For
one thing, it often is used when feedforward and concurrent controls are not feasible or are to
costly.
Sometimes, feedback is the only viable type of control available. Moreover, feedback has two
advantages over feedforward and concurrent control. First, feedback provides managers with
meaningful information on how effective its planning effort was. If feedback indicates little
variance between standard and actual performance, this is evidence that planning was generally
on target.
If the deviation is great, a manager can use this information when formulating new plans to
make them more effective. Second, feedback control can enhance employees motivation.
The major drawback of this type of control is that, the time the manager has the information and
if there is significant problem the damage is already done. But for many activities, feedback
control fulfils a number important functions.
Multiple Controls
Feedforward, concurrent, and feedback control methods are not mutually exclusive. Rather, they
usually are combined into an multiple control systems. Managers design control systems to
define standards of performance and acquire information feedback at strategic control points.
Strategic control points are those activities that are especially important for achieving
strategic objectives. When organizations do not have multiple control systems that focus on
strategic control points, they often can experience difficulties that cause managers to reevaluate
their control processes.
*Strategic control, the process of evaluating strategy, is practiced both after the strategy is
formulated and after it is implemented.
Strategic Control
Strategic control is concerned with tracking the strategy as it is being implemented, detecting
any problems areas or potential problem areas, and making any necessary adjustments.
Newman and Logan use the term "steering control" to highlight some important characteristics
of strategic control Ordinarily, a significant time span occurs between initial implementation of a
strategy and achievement of its intended results. During that time, numerous projects are
undertaken, investments are made, and actions are undertaken to implement the new strategy.
Also the environmental situation and the firm's internal situation are developing and evolving.
Strategic controls are necessary to steer the firm through these events. They must provide some
means of correcting the directions on the basis of intermediate performance and new
information.
Starting with the intended or planned strategies, he related the five types of strategies in the
following manner:
1. Intended strategies that get realized; these may be called deliberate strategies.
2. Intended strategies that do get realized; these may be called unrealized strategies.
3. Realized strategies that were never intended; these may be called emergent strategies.
Recognizing the number of different ways that intended and realized strategies may differ
underscores the importance of evaluation and control systems so that the firm can monitor its
performance and take corrective action if the actual performance differs from the intended
strategies and planned results.
Management Control
Where management control is imposed, it functions within the framework established by the
strategy. Normally these objectives (standards) are established for major subsystems within the
organization, such as SBUs, projects, products, functions, and responsibility centers.
Typical management control measures include ROI, residual income, cost, product quality, and
so on. These control measures are essentially summations of operational control measures.
Corrective action may involve very minor or very major changes in the strategy.
Operating Control
Operational control systems are designed to ensure that day-to-day actions are consistent with
established plans and objectives. It focuses on events in a recent period. Operational control
systems are derived from the requirements of the management control system.
Corrective action is taken where performance does not meet standards. This action may involve
training, motivation, leadership, discipline, or termination.
Measurement:
Strategic control requires data from more sources. The typical operational control
problem uses data from very few sources.
Strategic control requires more data from external sources. Strategic decisions are
normally taken with regard to the external environment as opposed to internal operating
factors.
Strategic control are oriented to the future. This is in contrast to operational control
decisions in which control data give rise to immediate decisions that have immediate
impacts.
Strategic control is more concerned with measuring the accuracy of the decision
premise. Operating decisions tend to be concerned with the quantitative value of certain
outcomes.
Strategic control standards are based on external factors. Measurement standards
for operating problems can be established fairly by past performance on similar products
or by similar operations currently being performed.
Strategic control relies on variable reporting interval. The typical operating
measurement is concerned with operations over some period of time: pieces per week,
profit per quarter, and the like.
* Operational control is concerned individual and group performance as compared with the
individual and group role prescriptions required by organizational plans ( for example, "are
individual sales quotes being met?").
Each of these types of control is not a separate and distinct entity and, in fact, may be
indistinguishable from others. Moreover, similar measurement techniques may be used for each
type of control.