Control System

Controlling is the process of establishing and implementing mechanisms to ensure that objectives are achieved. With multiple types of organizations and stakeholders, there is no universally accepted performance measure or control system; the control must fit the situation. The five
different types of control needed at the different stages of the systems process are:
1. Preliminary Control (Inputs)
2. Concurrent Control (Transformation Process)
3. Rework Control (Outputs)
4. Damage Control (Customer/Stakeholder Satisfaction)
5. Feedback

Firms are commonly organized into four major functional departments: operations, marketing, human resources, and finance. Information is the fifth major functional area that may be a stand-alone department or may fall under the finance functional department.

Operations Function
The operations, also called production and manufacturing, department is the functional area that is responsible for actually making the goods or performing the service.

Marketing Function
The marketing, also called sales, department is the functional area that is responsible for selling the products.

Human Resources Function
The human resources, formerly called personnel, department is responsible for attracting, developing, and retaining employees.

Finance Function
The finance, or accounting, department is the functional area that is responsible for recording all financial transactions, for obtaining funds needed to pay for inputs, and for investing any surplus funds.

Information (MIS) Function
The MIS department collects data from all departments and external sources as its inputs.

The Control Systems Process
Step 1. Set objectives and standards.
Step 2. Measure performance.
Step 3. Compare performance to standards.
Step 4. Correct or reinforce.

A budget is a planned quantitative allocation of resources for specific activities. Notice that the definition of budget does not include money. This is because all types of resources can be allocated.

Coaching is the process of giving motivational feedback to maintain and improve performance. Training is an important part of coaching, as coaching is continuous development. The four steps in the coaching model are described below.

Management by walking around (MBWA) has three major activities: listening, teaching, and facilitating.

There are four types of problem employees:
1. Employees who do not have the ability to meet the job performance standards.
2. Employees who do not have the motivation to meet job performance standards.
3. Employees who intentionally violate standing plans.
4. Employees with problems.

Source:
Management Fundamentals, (2006) by Lussier, R. N.,(3rd ed.). Thomson.