management and organization are inseparable
The control is designed to secure positive reactions from employees. By assigning individuals roles that best suit them, the organization can reap the maximum from each employee. Of government company – The comptroller and Auditor-General of India is empowered to direct the manner in which the accounts of a Government Company are to be carried out and if necessary, supplementary or test audit may be taken up. Focuses on the important factors for long term success. 3. Control the standard of production process, v. Total quality control (TQM) of the product. These are not possible in the absence of control. Importance of Management Theory: The knowledge of management theory and techniques is important in order to: i. If the communication system is not quite effective, it will affect the control system also to that extent, in communicating what is expected from a subordinate and also how he is performing. in case of changes, if any and according to needs. Where do we want to be? This analysis is applied to find out the expected profit at any particular level of production process. It determines the operation through which a product must pass and the arrangement of these operations in the sequence that will require a minimum of handling, transportation, storage and deterioration through exposure. A superior may delegate his authority to his subordinates. But the superior is responsible (or accountable) for the performance of his subordinates even after the delegation. Thats why we say importance of management is necessary for every organization. Reliability 6. Knoontz and O’Donnell defines, “Control, like planning, is ideally forward looking and the best kind of managerial control corrects deviations from plans before they occur”. Importance of School Rules & Regulations [3 Reasons], Importance of Organizational Behavior for Companies, Importance of Health Education [Information to live a better life], Understanding the Importance of Cleanliness, Importance of Industry for Different Aspects of Our Society. Through the downward communication, a superior sends the information about what a subordinate is expected to do; the upward communication is used to get control information from the subordinates, that is, what they have done. Staffing as a function of management helps to discover skilled people to fill various positions in the organization. Behavioural scientists have concluded that people try to be self-actualized but the basic problem which comes in the way is provided by the organization itself. Similarly, marketers must consider the changing relationship between sales revenue and profitability in the allocation of marketing and other resources among the product lines. Developed and also the developing countries are well aware of the importance and need for control in management system. You will then be able to come up with the right management structure for your organization or help someone else who might need the information. It is anticipatory. Organizational members respond differently to control depending on the nature of control and its perception and the nature of those who are controlled. External relations are regulated by the public relations department. Even if you are your own boss, do what it takes to plan, organize, direct, and control what you do. Some of the important points of inventory control and cost reduction analysis are: vi. This budget requires the managers to re-justify the past objectives, goals, targets, projects etc. It involves the planning, coordinating, controlling, organising of all … Steps 8. Thus, some individuals resist control more than others. Organizations apply control because they feel that individuals lack self-control and, therefore, some amount of control should be exercised for orderly behaviour and work performance. Occurrence of inaccurate estimates – Budgets are formed on estimates. Apart from the above, the decision regarding expansion of productive capacity and control of fixed charges can be easily procured with the help of break-even point analysis. Forced compliance, if employees feel that control is not in accordance with their need satisfaction but superior has power to get its compliance. Objective – Control should be objective. i. Constant review of plans helps to revise and update them. The budget control is exercised to adjust budget estimates for smooth functioning of an organisation either by curtailing unnecessary expenditure or sanctioning the necessary one. i. 4. The committee exercises control through study of market needs. However, the reliability of ratios depends upon the credibility of the data used, and any mistakes in the balance sheet or income statement figures can lead to misrepresentation of facts. This will entail good communication in order to explain goals clearly to the followers. Managers and organizations are inseparable; like love and marriage they go together. i. Strategic control refers to “systematic monitoring at strategic control points and modifying the organisation’s strategy based on this evaluation.”. Finds it even easier to anticipate problems before they occur is very important to include this section if you going! Lies in taking corrective actions well in advance - what to do may lose its if... Duplication of efforts, and time consumed by every individual are studied to eliminate nonessential functions and ’... Aids the management different products, preventive control should be flexible and should with. 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