Identify and explain the control systems which may be used by a manager to monitor and accomplish tasks in an organization. (15 marks)
The control systems a manager can use may be classified into three categories:
managerial discretion, timing and information.
Managerial Discretion
This relates to the amount of discretion a manager has in completing the task i.e. the freedom or authority to make decisions or choices about a particular situation. Such systems may be either cybernetic or non cybernetic.
Cybernetic control systems are self-regulating i.e. they have built-in devices to automatically correct any deviations that may occur. They are self-regulating and self operating, they eliminate the need for people overseeing tasks. This system is useful for tasks and processes in which all of the steps and standards are very well known e.g the use of robots in production.
Non cybernetic control systems are those in which managers use their own discretion in making decisions about how best to complete an activity and meet performance goals. Quality circles allow the discretion of work groups in determining how best to complete a job and eliminate problems.
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What are the drawbacks of control systems?
Game playing
People look at controls as something to be beaten. Many people look at rules and regulations as things to circumvent, the budget is frequently a version of ‘pad the budget,’ tax forms are never sincerely filled and most organizations ‘use’ every penny allocated to them – to justify that more resources are needed in the next budgetary season.
These games are played within the procedures of the control system.
Sabotage
One form of sabotage is to create confusion. Experts may complicate projects so that management cannot understand them or the resources to support the project.
Inaccurate information
Managers may supply inaccurate information to make themselves appear better while subordinates may report what they perceive management wants to hear.
Realistic reports and expenses may not be reported if they contradict what management expects.
Management may ask for information that has not been collected and subordinates may make up numbers or give their best guess.
Illusion of control
Appearing to be in control is particularly important at the upper levels of the firm. Managers attempt to appear in control and to assure their superiors that everything is in order and flowing smoothly.
Even in performance evaluation sessions, subordinates will attempt to appear in control and to deny the existence of any negative deviations from standards.
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