Essay on Management Control
There are relative controls and normative controls that can be used in an organization. The relative controls include bureaucratic controls, financial controls, and quality controls. The normative controls include team norms and organizational norms. The key to using relative controls successfully is finding the right balance between too much control and not enough control. Bureaucratic control is based on policies and procedures. Without the right amount of flexibility built in to the policies and procedures it can seem too rigid and reactions to situations or changes won’t happen fast enough. Financial controls are commonly used when there are different strategic business units within one firm. This type of control is focused on meeting specific financial goals and making sure spending is in line with industry averages. Quality controls effect the outcome of the product or service offered to the customer. This can be different depending on the company and the variance allowed with its products. With normative controls the behavior is considered acceptable based on patterns of action. Team norms let all the team members know what their responsibilities are based on informal team guidelines. These informal guidelines are usually developed over time as the team grows and works together. Organizational norms are values, beliefs, and rituals that are shared among the organization. Any of these different types of controls can be just as effective as the other one as long as the correct balance is found that benefits the organization and its employees.