The responsibility for the exercise of control rests with every manager charged with execution of plans. Although the scope of control varies among managers, the top and upper level control is so emphasised that an erroneous impression is gained that little controlling is needed at lower levels.
Management control is defined as a process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of an organisation’s objectives.
The primary purpose of control function is to ensure that the results, outputs, or organisational activity, i.e. the overall performance, corresponds to what is expected in each situation. It involves measuring the actual results against standards (expected results), and to take timely corrective actions if there are deviations.
Control presupposes two basic factors that are the prerequisites for any control system.
Controls are based on Plans:
Controls are based on plans. The more clear, complete and integrated the plans are, the more effective control can be. Managers cannot determine whether an organisational unit is accomplishing what is expected unless they first know what is expected.
Organisation Structure is needed for Control:
One cannot know where the responsibility for deviations’ lies unless organisational responsibility is clear and definite. The clearer, more complete and more integrated structure is the control action is that much more effective?
When controls are designed to reflect the level in organisation where responsibility for action lies, when will facilitate correction of deviation from plans.