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Characteristics of an effective control system
Course: Management Principles
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University: Damelin
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Characteristics of an Effective Control Systems
Controls at every level focus on inputs, processes and outputs. It is very important to have effective
controls at each of these three stages.
Effective control systems tend to have certain common characteristics. The importance of these
characteristics varies with the situation, but in general effective control systems have following
characteristics.
1. Accuracy:
Effective controls generate accurate data and information. Accurate information is essential for
effective managerial decisions. Inaccurate controls would divert management efforts and energies on
problems that do not exist or have a low priority and would fail to alert managers to serious
problems that do require attention.
2. Timeliness:
There are many problems that require immediate attention. If information about such problems does
not reach management in a timely manner, then such information may become useless and damage
may occur. Accordingly controls must ensure that information reaches the decision makers when
they need it so that a meaningful response can follow.
3. Flexibility:
The business and economic environment is highly dynamic in nature. Technological changes occur
very fast. A rigid control system would not be suitable for a changing environment. These changes
highlight the need for flexibility in planning as well as in control.
Strategic planning must allow for adjustments for unanticipated threats and opportunities. Similarly,
managers must make modifications in controlling methods, techniques and systems as they become
necessary. An effective control system is one that can be updated quickly as the need arises.
4. Acceptability:
Controls should be such that all people who are affected by it are able to understand them fully and
accept them. A control system that is difficult to understand can cause unnecessary mistakes and
frustration and may be resented by workers.
Accordingly, employees must agree that such controls are necessary and appropriate and will not
have any negative effects on their efforts to achieve their personal as well as organizational goals.
5. Integration:
When the controls are consistent with corporate values and culture, they work in harmony with
organizational policies and hence are easier to enforce. These controls become an integrated part of
the organizational environment and thus become effective.
6. Economic feasibility:
The cost of a control system must be balanced against its benefits. The system must be economically
feasible and reasonable to operate. For example, a high security system to safeguard nuclear secrets
may be justified but the same system to safeguard office supplies in a store would not be
economically justified. Accordingly the benefits received must outweigh the cost of implementing a
control system.
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