Controlling

  1. Systems/processes

  2. strategic human resources

  • Effective control helps managers assess if strategies are working as intended and allows them to make adjustments

  • organizational controls act as an early detection system for any deviations from the strategic plan, enabling quick corrective actions

Reactive vs. proactive

reactive: how to improve

Proactive: Make better

What is organizational control

the process by which an organization influences its subunits and members to behave in ways that lead to the attainment of organizational goal and objective

Functions of organizational control

  • Evaluating strategy: controls assess whether the organization is achieving desired results through current strategies.

  • early warning system: controls acts as a mechanism to identify issues before they become major problems, ensuring that the organization stays on track

  • Controls can be formal (Financial audits) or informal (performance appraisals) and the vary by organizational needs

Internal systems and processes

  • examples of controls include checklist, often used in safety-critical industries like aviation and healthcare

  • Balanced scorecards: a performance measurement system that balances financial and non-financial indicators that monitor strategie success