REQUIREMENTS/ CHARACTERISTICS OF ADEQUATE CONTROLS
Effective control systems have certain characteristics. They form a checklist for assessing control systems that are being designed or are in operations.
Future –oriented
To be effective, control systems need t help regulate future events, rather than fix blame for past events. A well designed control system focuses on letting the mangers know how work is progressing toward unit objectives, pinpointing areas in which future corrective action is needed, and uncovering unforeseen opportunities that might be developed- all aids to future action.
Multidimensional
In most cases, control systems need to be multidimensional in order to capture the major relevant performance factors. It is wrong to focus on quantity without concern for other issues, such as quality, scrap rate, and overheads.
Cost effective
The cost of control is an important consideration. Essentially its benefits should outweigh the cost the organization incurs.
Accurate
Since controls provide the basis for future actions, accuracy is vital. Control data that are seriously inaccurate may be worse than no controls at all, since managers may make poor decision on the basis of faulty data that they believe to be accurate.
Realistic
Control systems should incorporate realistic expectations abut what can be accomplished. Otherwise, employees are likely to view the control system as unreasonable and may ignore or even sabotage it.
Timely
Control systems are designed to provide data on the state of a given production cycle or process as of specific time, for example, a monthly sales report, a weekly update on a project, a daily production report, or quality inspections on a production line. In order for managers and employees to respond promptly to irregularities, control systems must provide relevant information soon enough to allow corrective action before there are serious repercussions.
Monitorable
Another desirable characteristic of a control system is that they can be monitored to ensure that they are performing as expected. One way of checking a control system is to deliberately insert an imperfection, such as defective part, and observe how long it takes the system to detect and report it to the correct individual. Obviously, it is important to keep close tabs on the test to be sure that the imperfection does not cause significant difficulties if the system fails.
Acceptable to organizations members
Control systems operate best when they are accepted by the organizations members who are affected by them. Otherwise members may take actions to override and undermine the controls. Control systems are apt to be accepted when they focus on important issues that are compatible with organizational goals, when they provide useful data to various levels, when data collected gives a fair and accurate picture of employee performance, and when emphasis is on using the data for making improvements (as opposed to setting blame)
Flexible
Just as organizations must be flexible to respond rapidly to changing environments, control systems need to be flexible enough to meet new or revised requirements. Accordingly they should be designed so that they can be changed quickly to measure and report new information and track new endeavors.
