Control Process Steps
Establishment of standards
Turning to the work of Chorafas (2004), one finds that the term standard is a criterion used for measuring results. Standards are norms that assist an organization to accomplish the set goals. The management of an organization can measure the standards using the output obtained (Plunkett, Allen & Attner, 2013). Non-monetary terms such as goodwill, loyalty and customer attraction can also be used to measure standard. Examples of standards in control process include cost standard, income standard among others.
Measuring the performance
Measuring performance involves comparing the obtained result to what the company had intended to accomplish (Lester & Lester, 2007). In the control process measurement helps management to understand the deviation and devise ways of collecting the shortcomings. Chorafas (2004) argues that the measurement of predetermined and actual results should be similar. Measuring performance helps to reduce additional costs in the future operations.
Comparison between the actual and expected performances
The management of any organization should compare the set goal and the actual result that the company obtains (Lester & Lester (2007). The comparison phase involves receiving the raw information, classification and recording of the acquired data, periodic evaluation and reporting the status. The comparison stage enables the managers to study the cause of deviations, effect and size of deviation (Plunkett, Allen & Attner, 2013).
Correction of deviations
After learning the causes, effect and size of the differences, the management should take the appropriate measures to eliminate the deviations in the process. Lester and Lester (2007) state that effective correction of the failures involves the probes in the areas of variance.
Types of control
An organization designs the control to monitor continuously and methodologically the validity of the assumption.
Special alert control
The control involves a rapid and rigorous reassessment of the firm’s strategy.
The application control comprises controlling the resources in implementing the policies.
Assessing the effectiveness of control
Chorafas (2004) states that an organization can test the effectiveness of the control by comparing the results before and after the application of the control systems. Furthermore the cost involved in the process can be used to assess the high cost associated with poor performance of the control
Chorafas, D. N. (2004). Operational risk control with Basel II: Basic principles and capital requirements. Amsterdam: Elsevier Butterworth-Heinemann.
Lester, A., & Lester, A. (2007). Project management, planning and control: Managing engineering, construction and manufacturing projects to PMI, APM and BSI standards. Amsterdam: Elsevier/Butterworth-Heinemann. N.p.
Plunkett, W. R., Allen, G. S., & Attner, R. F. (2013). Management: Meeting and exceeding customer expectations (10th Ed.). Mason, OH: South-Western Cengage Learning.