Organizations require control mechanisms to assess goal achievement and implement corrective measures when necessary. This article explores the six primary areas of organizational control, drawing insights from the resources provided:
Key Facts
- Strategic Control: This involves monitoring and evaluating the organization’s overall strategic direction and ensuring that it aligns with the desired goals and objectives. It includes assessing the organization’s competitive position, analyzing market trends, and making strategic adjustments as needed.
- Structural Control: This focuses on the organization’s structure and processes. It involves establishing and maintaining effective organizational structures, systems, and procedures to ensure efficient operations and coordination among different departments or units.
- Operations Control: This area of control is concerned with managing and optimizing the organization’s day-to-day operations. It includes monitoring and controlling production processes, quality control, inventory management, and resource allocation to ensure smooth and efficient operations.
- Financial Control: Financial control involves managing and controlling the organization’s financial resources. It includes budgeting, financial planning, cash flow management, cost control, and financial reporting to ensure the organization’s financial stability and profitability.
- Human Resource Control: This area of control focuses on managing and developing the organization’s human resources. It includes activities such as recruitment, selection, training, performance management, and employee development to ensure that the organization has the right people with the right skills to achieve its goals.
- Information Control: Information control involves managing and controlling the organization’s information resources. It includes activities such as data collection, analysis, and reporting, information security, and ensuring the accuracy and reliability of information used for decision-making.
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Strategic Control
Strategic control involves monitoring and evaluating the organization’s overall strategic direction and ensuring that it aligns with the desired goals and objectives. It includes assessing the organization’s competitive position, analyzing market trends, and making strategic adjustments as needed (Leadership Circle, 2022).
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Structural Control
Structural control focuses on the organization’s structure and processes. It involves establishing and maintaining effective organizational structures, systems, and procedures to ensure efficient operations and coordination among different departments or units (University of Washington, n.d.).
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Operations Control
Operations control is concerned with managing and optimizing the organization’s day-to-day operations. It includes monitoring and controlling production processes, quality control, inventory management, and resource allocation to ensure smooth and efficient operations (University of Washington, n.d.).
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Financial Control
Financial control involves managing and controlling the organization’s financial resources. It includes budgeting, financial planning, cash flow management, cost control, and financial reporting to ensure the organization’s financial stability and profitability (University of Washington, n.d.).
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Human Resource Control
resource control focuses on managing and developing the organization’s human resources. It includes activities such as recruitment, selection, training, performance management, and employee development to ensure that the organization has the right people with the right skills to achieve its goals (University of Washington, n.d.).
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Information Control
Information control involves managing and controlling the organization’s information resources. It includes activities such as data collection, analysis, and reporting, information security, and ensuring the accuracy and reliability of information used for decision-making (University of Washington, n.d.).
References
Leadership Circle. (2022, March 5). The Six Systems of Organizational Effectiveness. https://leadershipcircle.com/the-six-systems-of-organizational-effectiveness/
University of Washington. (n.d.). G – Control in Organizations. http://courses.washington.edu/inde495/lecg.htm
FAQs
What is the purpose of organizational control?
Organizational control aims to ensure that the organization’s activities align with its goals, adapt to environmental changes, limit error accumulation, cope with organizational complexity, and minimize costs.
What are the six areas of organizational control?
The six areas of organizational control are strategic control, structural control, operations control, financial control, human resource control, and information control.
What is the focus of strategic control?
Strategic control focuses on monitoring and evaluating the organization’s overall strategic direction and ensuring that it aligns with the desired goals and objectives.
What does structural control involve?
Structural control involves establishing and maintaining effective organizational structures, systems, and procedures to ensure efficient operations and coordination among different departments or units.
What is the purpose of operations control?
Operations control aims to manage and optimize the organization’s day-to-day operations, including monitoring and controlling production processes, quality control, inventory management, and resource allocation.
What does financial control entail?
Financial control involves managing and controlling the organization’s financial resources, including budgeting, financial planning, cash flow management, cost control, and financial reporting.
What is the focus of human resource control?
Human resource control focuses on managing and developing the organization’s human resources, including activities such as recruitment, selection, training, performance management, and employee development.
What does information control involve?
Information control involves managing and controlling the organization’s information resources, including data collection, analysis, and reporting, information security, and ensuring the accuracy and reliability of information used for decision-making.