Kuznetsov. Fundamentals of management
Control can be defined as a process ensuring effective achievement of goals of the organization. The control function includes accounting (collection, processing) and analysis of information on actual results of operations of all organizational units, their comparison with planned performance, identify deviations and their causes;
development of actions to achieve the goals. Occurrence of abnormalities in the organization of the plan may require urgent solutions that is considered through the function of coordination and regulation.
Thus, the place and importance of control are determined by the fact that it is a way of organizing feedback, thanks to which the management body receives information on progress in the implementation of its decisions.
Control allows you to see the entire true picture of production status. And therefore its effectiveness ultimately depends on the quality of decisions and their timely execution.
First of all, select two types of control — strategic (or management) and tactical (or Executive).
Strategic, or managerial, control is aimed at solving strategic tasks, and is closely linked, of course, with strategic planning and management.
Tactical or administrative control is intended to monitor systematically the enforcement of current problems, programs, and plans.
There are also preliminary, current and final control in organizations.
In the literature there are a number of approaches to the selection of forms of control. For example, there are four forms: the control of financial resources; material resources; human resources and control of information resources.
Some authors distinguish the following forms of control: production control: inventory management; quality control; financial control.
In addition, distinguish such types of control, such as financial, product quality, pricing, administrative (current).Here there is both functional and resource-based approach. Naturally, each technique when a certain approach is valid, but, in our view, they suffer from a certain narrowness, one-sidedness. Therefore, along with the above mentioned types of control, in our view, include the following forms of control: financial, production, marketing control and quality control.
Financial control is the basis for the overall management and control is based on receiving from each unit of the financial reporting in standard forms. Financial control covers all aspects of organization activities — production, marketing and the management. It includes budgets, profitability analysis, ratio analysis and investment return.
Production control includes six functions:
1. Routing, i.e. the sequence of operations.
2. Download, that is, the distribution of work.
3. Production schedules that determine the time when should be done each operation.
4. Preliminary estimate of the cost of execution of work.
5. Dispatching — the process of organizing.
6. Sending is the final operation, which checks whether plans.
Marketing control is based on:
- analysis of market opportunities;
- analysis of market share;
- analysis of the relation between marketing expenses and sales;
- monitoring the attitude of customers.
Quality control, including novelty, technical level, the lack of defects in design, reliability in operation, is one of the most important means of competition, of winning and maintaining market position.
The process of verification, wherever carried out, can be reduced to three stages:
1. The establishment of norms (standards);
2. The measurement of compliance of the implementation with those standards;
3. Correction of deviation from norms and plans.
More details on this process are presented in Fig. 3.15.
The control system of the organization, in order to be effective, must meet a number of requirements:*
1. Control must be comprehensive.It is not the prerogative of any individual Manager. Every Manager must exercise control as an integral part of their duties, even if he was not charged.
2. The control can neither be purposeful, nor neutral.
3. Control should focus on results. Control can only be measured phenomenon. Control
needs to be economical. The total cost should not exceed achieved with the help of results. The less you want control, the more effective it is.
4. The control system should be simple. Excessive complexity creates confusion.
5. Control must be continuous in time.
In accordance with the specified requirements has been developed the control system, which is called "Controlling". The essence of this system, as marketing is the ability to think from the customer's perspective. Controlling as an integral system aims at identifying all the chances and risks of the organization both external and internal nature, which are associated with the achievement of strategic goals.
Considered a modern system of management — external and internal environment of the organization and functions of management, it is possible to draw conclusions about what constitutes good management. Examining 62 the company is known for excellent management, they found eight features that were present in each case.*
1. A tendency to action. In well-managed companies, we are paying particular attention to the action. They make plans, but netak, which are able to destroy them.
For example, Procter and gamble list of new products to restrict only one webpage.
2. Simple structure and small size. Although all the companies studied were large, their divisions were organized on the principle of "less is more".
3. The proximity to the consumer. In some firms consumer care borders on fanaticism.
4. Performance through people. Companies recognize that people (not equipment and technology) is the key to performance.
5. Autonomy to encourage entrepreneurship. Well-managed companies are interested in not only the higher echelons of management was looking for a good opportunity. Managers of individual units are free to develop such opportunities.
6. The emphasis on the core values of the business. The strategy of each company is focused on the core value that corresponds to the style of the company's business: service (IBM), ideas and performance. This setting permeates the company at all levels.
7. To do what you know best. Never mind that business in which you don't know what to do.
8. At the same time soft and hard control. Well-managed firms choose a few key parameters and rigidly controlled, allowing flexibility in other areas. The attempt to control too many parameters at once leads to collapse.
Although the analysis of firms focused on large companies, but these eight points apply to small firms.
The main thing is not to dig into the papers — to act.
Not to complicate the structure.
To interact with people.
People — the key to performance.
You need to allow subordinates to be creators.
To focus on a few core values.
To do what you know best.
To control but not to press.
These basic rules will serve as the head of small firms and President of a large Corporation.