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The controlling function is defined as any process that directs the activities of individuals toward the achievement of organizational goals . The controlling function is the one that set the game rules. This function set the organizational standards rules and norms. The controlling function works hand to hand with the planning function because the controls are the ones that ensure that the plans are fulfilled. The established controls must go in coherence with the plans because the success of each will depend on the other. The control function not only control the personnel it also control things as, budget, organizational resources, machinery, materials or components, physical structure and more.
The control process must set performance standards, measure performance, compare performance with the standards; and take corrective action if needed in order to be effective One of the most used control systems is the bureaucratic control system. The bureaucratic control system Bureaucratic control is defined as the use of rules, regulations, and formal authority to guide performance . The bureaucratic control system is a very rigid and formal one. This system establishes a well defined set of rules and procedures in order to achieve the organizational goals and objectives. This system is based on hierarchy were roles and authority has been well defined. This control system involves personnel close monitoring, supervision and direction of subordinates by superiors.
The bureaucratic control different uses tools as budget as a control device, management audits, external audits, and internal audits. The market control system is based on the use of pricing mechanisms and economic information to regulate activities within organizations . This control system is based in external factors that affects an organization rather than the internal factors. The clan control system is defined as a control system based on the norms, values, shared goals, and trust among group members. This kind of control system offers empowerment to the employee; it also provides the employee with a sense of ownership of his work and environment. All of these ends up in the creation of an entrepreneur culture that is defined by the values shared of the members of the organization.
As all managerial function approaches these three systems have their advantages and disadvantages. These three systems differ in the approach of control. Some of these systems use their internal environment as the based and others use their external environment. Some of the advantages of the bureaucratic control system are Provides a way to manage a large diversified organization. Better decisions can be made at the local level. Provides incentives to department managers and individuals to optimize their individual performances.
Provides managers with the freedom to make local decisions and this will help the top management with more time to make policy decisions and engage in strategic planning. It provides the individual with explicit rules and regulations. The bureaucracy provides a low cost search acquisition and training of employees. Select employees with little screening and design a system to instruct, monitor and evaluate them. It has Greater Labor pool to select from, increased evaluation measures, The bureaucratic controlling system has its disadvantages also. Some of the disadvantages of the bureaucratic control system lack flexibility and the mechanical structure they have.
The supervision cost is higher. It also tends to produce many specialties and sub-specialties to reduce the interdependence. Rules and close surveillance are required for each specialty and sub-specialty. The clan controlling system has its advantages and disadvantages too.
The advantages are higher commitment by employees and lower evaluation costs. The disadvantages are smaller labor pool and increased hiring costs and it can be an elaborate control mechanisms can go unnoticed, but effective. The Market controlling system has advantages and disadvantages also. The advantages of this system are is very objective. Decision-makers would need no other information. The major disadvantage of the market control system is that is a system used very often.
There are many positive and negative reactions in the implementation of these control systems. The most challenging system to implement in any organization is the bureaucratic system because is the system that produce more negative reactions. Some of the positive reaction that the bureaucratic system produce are the tendency of the employee to know their roles and they offer highly define roles for each position. It provides the employees with standards and guidelines to follow in order to comply with their jobs. It provides the adequate information to the employee. We got to fuscous the management in the positive behaviors in order to have a good reception from the employees.
The negative reactions we encounter when implementing the bureaucratic control system are more often than the positive ones. The employees usually visualized the bureaucratic control system as a mechanical and inflexible system that is company oriented leaving the employee out and this will end in the resistance of this system. The employee tends to look at himself as the victim of the system. The employees can also have a tactical behavior in reaction of the implementation of this system. This tactical behavior is defined as the beating the system behavior. This can be harmful to an organization because employees can start to report false information.
This will have bad consequences to the organization because it will provide wrong information for the forecasting and planning of future organizational goals and objectives. Controlling can also produce a resistance to control reaction because Control systems usually uncover mistakes, threaten people's job security and status, and decrease people's autonomy it can also change the organizational structures and the authority chain of command. It can also disrupt the social relations of a group. In order to develop a system functional system for an organization the best decision is to make a hybrid one. Not only taking the organizational objectives in consideration but also taking in consideration the employees and the external and internal factors that affects all of the organization. References Bateman-Snell: Management: The New Competitive Landscape, Sixth Edition chapter 16 James Higgins, The Management Challenge, Second Edition, Macmillan, 1994,
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