Like any other organization operating in the current business world, my organization has established organizational control systems; control systems have become a very central part of organization management. In most organizations, these systems fall under two major categories; functional control systems and dysfunctional control systems (Giesen, Overloop, Montazar, Isapoor, 2009). These will be discussed hereunder as they apply in my organization Functional control systems
The functional control systems within my organization include budgetary control systems, cost control systems and performance control systems clan control systems. These control systems are well monitored by the organizational management and audit team to ensure that the internal coordination of activities is conducted professionally and ethically. Basically, the organization established this controls to act as performance guidelines and to check into any kind of gaming by managers or manipulation of documents of reporting.
The budgetary control systems apply various techniques to check into the budgetary system, regarding the ability to meet budget targets as and when expected. To achieve this, various techniques are used in the budgetary control systems which include bench trending and benchmarking, variance analysis, control centers and budget forecasting. Cost control systems on the other hand are the formal structure that the organization has
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The objective of cost control system is usually to investigate the reasons as to why the costs being incurred are not in accordance to the organizational or individual departmental budget so that corrective measures can be initiated (Anthony, 1998). They techniques used in cost control in my organization include; cash flow management, Activity Based Costing (ABC), target costing and Total Quality Management (TQM). Performance control systems are part of formal functional control systems that the management employs to assess the overall performance of the workforce as compared against the expected total output per employee or per unit.
It is used by organizations to ensure that the staff members are competitive, productive and innovative enough to accomplish the expected level of performance on their assigned duties and responsibilities (Chenhall, 2003). My organization uses balanced scorecards, Kaizen (for continuous improvement assessment) and also benchmarking to ensure that employees are not “gaming” the system and their productivity matches compensation that they receive from the organization.
The last class of functional control system in my organization comprises of the clan control systems which comprises of controls into the cultural values shared by the members of the organization. It checks into the shared norms, beliefs, corporate culture, values and informal relationships amongst the members of the organization (Anthony, 1998). Research has shown that clan control is one of the areas which can result to dysfunctional control systems if it is not well administered because it involves informal structures within the organization which are the leading cause of dysfunctional behavior among the members (Chenhall, 2003).
In my organization, the management has established strong measures which regulate informal relationships and govern the way in which the informal organizational structure is controlled. These are used as techniques of ensuring that clan control systems achieve their objective. Dysfunctional control systems Dysfunctional control systems in my organization are evidenced by various functions which lack internal checks and thus have become ‘loopholes’ for the organizational resources.
They include inter-departmental control systems, informal control systems and production control systems. These systems are manifested by dysfunctional behavior of the people charged with them as well as constant failures to meet targets and accomplish goals. There is poor coordination among the activities of the various departments: most of the departments conduct their operations independently and report only to the senior management. Consequently, duties are often duplicated and conflict of interest arises among the departmental heads.
More so, the spirit of teamwork is not embraced by people from different departments since each department concentrates on achieving its own targets. This results in total dysfunction of all the departments because they fail to work towards a common objective. The informal relationships in the organization are also not properly controlled. Informal control systems are established to guard issues such as grapevine, peer and group pressures as well as group think within the organization (Giesen, Overloop, Montazar, Isapoor, 2009).
Due to poor control systems in this field, the organization is constantly dealing with employee conflicts, improper work relationship between seniors and subordinates and destructive rumors and grapevine circulating amongst the members. Further, the production function for my organization does not have proper control systems which ought to govern production costs, procurement, and dispatch and supplier selection. Consequently, higher production overheads, raw material wastage, spillage and poor and unproductive relationships have been experienced in this.
In addition, the organization experiences problems in stock management due to poor stock control system for regulating stock in and out of the stores in the department. PART II: Criteria for developing and evaluating control systems In developing and evaluating control systems, the criteria followed must be able to ensure that the control systems are efficient and adequate enough to ensure proper control of the intended operations. In interpreting the criteria for developing and evaluating control systems, the first step should be examination and determination of the needed organizational controls.
The organization must be able to define the what, why, how, where and when questions in developing control systems to ensure practical evaluation. These five questions assist management or the people designated with the control systems responsibility to develop and evaluate their control systems’ effectiveness and efficiency (Fabe, 2010). To begin with, the management must determine what control systems are needed to ensure that all the activities are properly controlled and contained within the organization goals and objectives.
At this point, various types of control systems will be evaluated in their ability to achieve required objectives. Secondly, why does the organization require control systems? This involves deliberate and thorough assessment of the reasons which make it crucial to establish control systems. Such may include failure of operations, gaming by line managers, frauds, poor employee performance, thefts and general underperformance of resources and inputs Fabe, 2010). The third question is: how will the control systems be developed and evaluated?
It is at this point that issues such as the techniques that will be used in developing and evaluating the controls are deliberated. Such techniques include those earlier discussed in this paper. Others that may be used include capital budgeting, performance appraisal control systems as well as customer satisfaction controls (Fabe, 2010). The next question in the interpretation of the criteria for development and evaluation of control systems regards the areas within the organization that require control system; where are controls needed?
This involves evaluation of areas and functions in the organization where there are no control systems or where the systems are either insufficient or not effective. Consequently, a step by step evaluation of each and every department and area within the organization is conducted to reveal which fields are not well controlled Fabe, 2010). When will control systems be developed /established? When will they be evaluated to ensure continued improvement? At this point, all the necessary control systems have been determined and the necessary fields identified.
This is the second last stage in the development and evaluation of control systems criteria. The organization needs to determine the periodic basis of conducting checks on the control systems and appoint roles to individuals who will carry out the periodic checks. This can be done on daily, weekly or otherwise basis depending on the size and nature of business conducted by the organization. Next, the organizational management must see to it that the control systems are pilot-tested for a given time duration before being adopted into the organization.
Pilot testing is done to assess the ability of the controls to produce the desired outcomes. Finally, the controls are implemented in the entire organization and used to ensure smooth running of the organizational activities (Fabe, 2010). PART III: The essentials of quality management and associated techniques The essentials of quality management comprise of leadership, customer focus, continued improvement, factual decision making approach, people involvement and process approach (Hoyle, 2006).
Being a food and beverage firm, my organization ensures a customer centric approach to management by ensuring that customer needs are not only understood but also that delivery goes beyond the expectation of customers. For instance, the company produces free weekly magazines to major customers which cover topics related to proper eating habits, hygiene and health among other related topics. It also establishes ensures that there is unity in direction and purpose of the organization, which the principle behind leadership.
The organization trains its staff and considers their views and opinions in decision making and implementation of new methods and techniques. This is extended to the suppliers, the local community and the customers and through this the organization has been able to be among the leading food and beverage companies since leadership facilitates competitive advantage. People involvement is closely linked to factual decision making (Hoyle, 2006). In my organization, involving the staff in decision making facilitates better and factual decision making.
Knowledge management is applied here as the basic tool because when critical decision need to be made, the organization either invites people into a free forum, dispatches questionnaires or uses personal interviews to inquire and gather knowledge from the staff members. This ensures that people remain motivated and decisions do not conflict with employee interests. Process management is also applied together with continued improvement to make sure that the expected output is attained through linking the resources with the operations.
Mostly, the human resources are the ones who are targeted in process management: their input into the process is measured against output to determine whether there is continued improvement as they gain more skills and training in the workplace (Hoyle, 2006). Benchmarking is used as one of the techniques for measurement of continued improvement, whereby, targets are raised after every trading period, to assess the feasibility of continued improvement. PART IV: Anticipated impact to my personal and professional life
In my career life the use of control systems and techniques of quality management have inculcated the behavior of ‘results under minimal supervision’ because, the control system are able detect poor work input even when supervisors are not present. Therefore, I anticipate that in future, I will be able to perform duties effectively and professionally not because my supervisors or other seniors may notice errant behavior, but because it is an aspect of quality management.
In my personal life, the impact of informal control systems and the essential of quality management have enabled me to learn how to relate well with colleagues at the work place and the general public. In future therefore, I anticipate excellent public communication and presentation skills as a result which will enable me to become influential at workplace and in the society at large. References Anthony, R. (1998). Management Control Systems, Boston: McGraw-Hill. Chenhall, R. (2003). Management Control Systems Design within its Organizational Context:
Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28: 127-168. Fabe, A. (2010). Criteria for developing and evaluating control systems. Retrieved from http://citeseerx. ist. psu. edu/doi=10. 1. 1. 72. 8657&rep=rep1&type=pdf Giesen, N. , Overloop, P. , Montazar, A. , Isapoor, S. (2009). Designing and evaluating control systems of the Dez main canal. Hoboken: John Wiley & Sons Hoyle, D. (2006) Quality management essentials, Burlington: Butterworth-Heinemann