Effective Business Control: Features, Stages, and Areas
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Control Sense
Restricted: Process to verify objective achievement and expenditure.
Large: Organization-wide verification of quantitative and qualitative objective achievement.
General: Informal and technical process of monitoring and assessing cultural and human factors, etc.
Control Features
Economics: Control cost should not exceed the value controlled.
Operation: Control should be simple to apply.
Significance: Control should be located in key activities for optimal follow-up information.
Consistency: Control features must be compatible with the controlled activity.
Opportunity: Checks must be timely.
Stages of Administrative Control
- Setting parameters and methods for measuring performance (e.g., management approval with a score of 8).
- Performance measurement.
- Determining congruence between performance and set parameters.
- Implementing corrective actions if necessary.
Areas of Control
Production
- Quality Control: Based on established standards.
- Cost Control: Verifies labor and raw material costs.
- Production Time Control: Monitors time per operator and machine.
- Inventory Control: Manages quantity and quality of raw materials, semi-finished, and finished products.
- Waste Control: Limits waste to avoid cost increases.
Commercial
- Sales Control: Checks for deviations from set targets.
- Advertising Control: Monitors advertising levels and outcomes.
Financial
- Budgetary Control: Estimates revenue and expenditure across all organizational sectors.
- Cost Control: Manages costs in all areas.
Human Resources
- Attendance and Punctuality Control: Tracks staff attendance and delays using a time clock system.
- Annual Rest Period Control (Holidays): Manages employee holiday schedules.
- Earnings Control: Oversees salaries, wages, benefits, and adjustments.
- Physical and Mental Integrity Control: Ensures safety and hygiene to preserve employee well-being.
Other
- Information Control: Ensures information is accurate and verifiable for effective managerial decision-making.
- Correspondence Control: Involves detailed checking of organizational documents to maintain institutional prestige.