Co-Ordination and Controlling: Good Control System, Clear Objectives, Appropriate and Flexible

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Good Control System

  • In order to ensure that the control system is effective and serves its purpose, it must meet the following requirements.

  • Simple

  • It should be simple and easily understandable.

Image of Good Control system

Image of Good Control System

Clear Objectives

Objectives should be clearly and specifically laid down and expressed in quantitative terms leaving no scope for subjective interpretation.

Appropriate

It should be appropriate to suit the requirements of the organisation. Control system for a manufacturing concern is to be different from that of a trading or service organisation.

Flexible

It should be flexible and responsive to changing requirements of the organisation and be adaptable to the new developments.

Forward Looking

The control system should be directed towards future. It should indicate the steps to be taken in future so that the deviations do not continue and reduced to the minimum.

Concentrate on Exceptions

An effective and economical control system must focus attention on factors critical to performance. The significant deviations from the standard, whether positive or negative should be brought to the knowledge of the management. If we try to control every small aspect, the system is likely to create problems rather than ensuring planned performance and may prove costly.

Efficient Control Techniques

The control techniques are considered efficient if they help in detecting the derivations at an early stage and help in achieving the desired results. The traditional ones are budgetary control and standard costing etc. Now-days, there are a number of techniques used in different organisations more effectively. Some of these techniques are Break Even Analysis, Programme Evaluation and Review Technique (PERT), Critical Path Method (CPM), Statistical Quality Control (SQC) and Management Audit etc.

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