Tools and Techniques of Control (Controlling)
There are different ways that managers regulate organizational activity so that standards can be maintained in performance. They maintain proper control over the activities of individuals and units of the organization to achieve predetermined goals.
One of the important techniques of control is personal control. It is concerned with controlling the activities through the direct supervision of subordinates. It is very subjective in practice.
Managers personally observe the performance of subordinates and their behavior. In this technique, managers have knowledge about the progress and problems of all organizational activities.
It is suitable for small organizations having a limited number of activities.
This technique of control is based on Max Weber’s Bureaucratic Theory of Management. According to this theory, management structure should be developed in a hierarchical system, and division of work should make on the basis of specialization.
There must be written rules and standardized procedures for completing every job. Managers control over activities of subordinates through a formal system of written rules and procedures. This control technique is useful for large organizations having a vertical organizational structure.
Related: Types of Control
In output control, units of output to be produced by every individual and department are specified for a fixed period of time. Goals assigned to different departments and units depend on their responsibility and role in the organization.
For example, the production department will be given productivity and quality goals, the marketing department will be given market share goals, and so on. Managers maintain control over the activities of subordinates by measuring their actual output.
It is concerned with regulating the behavior of employees by socializing them about organizational culture.
Socialization facilitates employees to consider the values and norms of the organization and perform activities and show consistent behavior.
This helps to maintain a self-control environment in the organization. In this control system, the requirement for bureaucratic and personal control is reduced.
Control Through Incentives
It is one of the most efficient control techniques. Incentives are the reward and facilities provided to employees. It is designed to encourage the practice of self-control in employee performance.
Employees regulate their behavior in a manner that is consistent with organizational goals.
Incentives should be given to the employees on the basis of their skills and the scope of the business of the organization. Incentives may be financial or non-financial.
Financial incentives involve fair wages, allowances, bonuses, shares of profit, etc. Non-financial incentives involve a good working environment, proper division of work, promotion on the basis of skill, transportation facilities, etc.
The market control technique focuses to regulate the behavior of individuals and units within an organization by generating an internal market for some valuable resources such as capital. Such control techniques are found within an enterprise having diversified product divisions.
All cash generated by divisions is considered as belonging to the head office, where the head office acts as an internal investment bank. Divisional managers have access to the capital only to grow their divisions. It is assumed that internal competition will drive divisional managers to perform activities to improve the efficiency of their units.
Read Next: Process of Controlling