Session-39

 Session-39

20 Jan 2022

The discussion was about areas of control and levels of control and the controlling process.

There are 4 main areas of control which are as follows

1. Physical Resources-Control includes inventory management, production control, quality control and equipment control.
2. Human Resources- Control includes selection and placement, training and development, performance appraisal and compensation.
3. Information Resources-Control includes sales/marketing forecasting, environmental analysis, public relations, production scheduling and economic forecasting. 
4. Financial Resources-Control involves managing the organization's debt, cash flow and receivables/payables. Control of financial resources may be the most important control of all.

Levels of control include -Strategic control, Structural control, Operations control, Financial control. The procedure that a company utilises to transform resources into products or services is called Operations control. Controlling intermediate-term operations and processes, but not company strategies is what operational control entails. Operational control systems guarantee that actions follow predetermined procedures.​ for example- quality control. Financial control relates to the financial resources of the organisation.  Financial control can be seen in the monitoring of receivables to ensure that consumers pay their invoices on time. ​ Structural control is concerned with how the various components of the organization's structure are performing their functions. Structural control can be seen in the monitoring of the administrative ratio to ensure that personnel spending does not become exorbitant. ​ Strategic control examines how well the organization's corporate, business, and functional strategies are assisting the organisation in achieving its objectives. Strategic control may involve the reassessment of a strategy due to an immediate, unforeseen event. 

Next we understood the steps involved in the controlling process by examining the operations that take place in Taco Bell. The basic steps of a controlling function are described below.