The Formal Control Process
No
Yes
Communication
Feedback
Measurement
Corrective action
Revise
Revise
Responsibility center performance
Rules
Budgeting
Report actual versus plan
Was Performance satisfactory
Other
information
Strategic Planning
Goals and strategies
Goals:
The overall objectives, purpose and mission of a business that have been established by its management and communicated to its employees. The organizational goals of a company typically focus on its long range intentions for operating and its overall business philosophy that can provide useful guidance for employees seeking to please their managers.
Goals are predetermined and describe future results toward which present efforts are directed.
Rules.
A business rule is a rule of a business, company, or corporation. It is a rule that defines or constrains some aspect of business and always resolves to either true or false. Business rules are intended to assert business structure or to control or influence the behavior of the business.Business rules describe the operations, definitions and constraints that apply to an organization. Business rules can apply to people, processes, corporate behavior and computing systems in an organization, and are put in place to help the organization achieve its goals.
For example a business rule might state that no credit check is to be performed on return customers. Other examples of business rules include requiring a rental agent to disallow a rental tenant if their credit rating is too low, or requiring company agents to use a list of preferred suppliers and supply schedules.
While a business rule may be informal or even unwritten, writing the rules down clearly and making sure that they don't conflict is a valuable activity. When carefully managed, rules can be used to help the organization to better achieve goals, remove obstacles to market growth, reduce costly mistakes, improve communication, comply with legal requirements, and increase...