Control is an essential aspect of strategic management that ensures organizational activities are aligned with planned goals and objectives. It involves monitoring, measuring, and correcting deviations to achieve desired outcomes. Effective control systems provide managers with feedback to improve processes, optimize resource utilization, and maintain efficiency. Controls also minimize risks by identifying potential problems before they escalate. They help ensure accountability, compliance with policies, and adaptability to changes in the business environment. Different types of controls exist to address various organizational needs, each serving a unique role in maintaining performance and ensuring strategy implementation.
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Feedforward Control
Feedforward control is a proactive approach that focuses on preventing problems before they occur. Instead of waiting for results, it emphasizes anticipating potential deviations by evaluating inputs, resources, and processes in advance. For example, in a manufacturing setup, checking the quality of raw materials before production ensures that final products meet required standards. Similarly, in project management, thorough planning and resource allocation prevent delays and cost overruns. Feedforward controls help reduce errors, save costs, and improve efficiency by ensuring that resources and processes are well-prepared from the start. This type of control is particularly useful in dynamic industries where changes must be anticipated early to maintain a competitive advantage.
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Concurrent Control
Concurrent control operates in real time by monitoring activities as they happen, ensuring that operations stay aligned with plans. It allows managers to detect deviations instantly and make immediate corrections. For instance, in retail, monitoring customer service interactions ensures quality is maintained during the process. In production lines, automated systems track defects or delays, enabling prompt adjustments. Concurrent control reduces wastage, increases responsiveness, and enhances customer satisfaction by addressing issues on the spot. It is especially vital in service industries, where customer interactions and outcomes cannot be reworked later. This type of control ensures that organizational activities remain efficient, consistent, and in line with established objectives while reducing the risk of major setbacks.
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Feedback Control
Feedback control is a reactive mechanism that measures outcomes after the completion of activities to identify success or failure. It evaluates actual results against planned objectives and provides insights for future improvement. For example, analyzing sales performance reports after a campaign helps identify effective strategies and areas needing change. Similarly, post-project reviews highlight strengths and weaknesses in execution. Though feedback control cannot change past outcomes, it provides valuable lessons that guide future planning and decision-making. It is commonly used in financial reporting, performance appraisals, and customer satisfaction surveys. By systematically analyzing results, feedback control enhances learning, helps organizations adapt to changes, and strengthens overall strategic performance.
Control Process:
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Establishing Standards
The first step in the control process is establishing performance standards, which serve as benchmarks for measuring actual results. Standards can be quantitative, such as sales targets, production output, or cost limits, or qualitative, such as customer satisfaction or employee morale. These standards must be realistic, measurable, and aligned with organizational goals. Clear standards ensure that employees understand what is expected of them and provide a reference for evaluating performance. Without well-defined standards, it becomes difficult to identify deviations or determine success. Thus, setting accurate and achievable standards forms the foundation of an effective control process.
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Measuring Actual Performance
Once standards are set, actual performance is measured to determine progress toward goals. This step involves collecting data on outputs, processes, and results. Performance measurement may be done through financial reports, production records, customer feedback, or employee evaluations. It is essential to ensure that the data collected is accurate, timely, and relevant to decision-making. Both quantitative and qualitative measures can be used depending on the nature of the task. Measuring performance provides insights into whether objectives are being met and serves as the basis for comparing actual outcomes against standards, ensuring control remains meaningful and effective.
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Comparing Performance with Standards
In this step, actual results are compared with the predetermined standards to identify deviations. If performance meets or exceeds standards, it indicates successful execution. However, if there are differences, the magnitude and causes of these deviations must be analyzed. Comparison may involve statistical analysis, variance reports, or performance dashboards. Small variations are acceptable, but significant deviations signal problems requiring attention. This step helps managers identify weak areas and determine whether corrective measures are necessary. Comparing results with standards ensures accountability, highlights inefficiencies, and provides valuable insights into how closely organizational activities align with strategic objectives.
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Taking Corrective Action
The final step involves taking corrective action to address deviations and ensure future performance aligns with standards. Corrective action may include revising processes, retraining employees, improving resource allocation, or even redefining objectives. Immediate corrective steps help prevent further losses or inefficiencies, while long-term measures strengthen systems for future performance. For example, if sales targets are not met, managers might adjust marketing strategies or enhance product quality. Corrective actions should not only solve present issues but also prevent recurrence. By implementing necessary changes promptly, organizations can maintain efficiency, improve performance, and ensure that strategic goals are consistently achieved.
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