Principles of Controlling

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 Principles of Controlling

1. Objectives

  • Definition: Controls should contribute positively to achieving organizational goals by detecting deviations promptly and accurately.
  • Purpose: Enables corrective actions to realign performance with planned objectives.

2. Interdependence of Plans and Controls

  • Concept: Clear, integrated plans enhance effective controls.
  • Integration: Well-aligned controls reflect and support cohesive organizational plans.

3. Control Responsibility

  • Assignment: Primary responsibility for controls rests with managers overseeing specific plans.
  • Effectiveness: Clear responsibilities streamline accountability and corrective actions.

4. Conformity to Organization Pattern

  • Alignment: Controls must mirror the organizational structure and operational goals.
  • Effectiveness: Clear structure aids in pinpointing responsibility for deviations.

5. Efficiency of Controls

  • Objective: Controls should swiftly detect deviations with minimal unintended consequences.
  • Impact: Efficient controls streamline corrective actions, enhancing organizational effectiveness.

6. Future-oriented Controls

  • Focus: Controls should anticipate and prevent future deviations.
  • Preventive: Forward-looking controls mitigate risks and optimize future performance.

7. Individuality of Controls

  • Customization: Tailor controls to meet specific managerial and organizational needs.
  • Adaptation: Customized controls enhance relevance and effectiveness in diverse contexts.

8. Strategic Point Control

  • Focus: Prioritize controls on critical factors impacting organizational performance.
  • Strategic: Direct attention to pivotal aspects for effective performance assessment.

9. The Exception Principle

  • Focus: Notify and prioritize significant deviations from standards.
  • Importance: Differentiate between critical and minor deviations to optimize management focus.

10. Principle of Review

  • Cycle: Periodically review control systems to ensure relevance and effectiveness.
  • Adaptation: Flexible and cost-effective reviews enhance control system responsiveness.

Additional Information

  • Integration with Management Process: Controlling completes the management process by ensuring alignment with planned objectives.
  • Continuous Improvement: Principles emphasize adaptability and proactive measures to enhance organizational performance.
  • Management Adaptation: Principles guide managerial decision-making in adjusting controls to meet evolving organizational needs.

Summary

The principles of controlling provide a structured approach to monitoring and adjusting organizational performance. By aligning controls with organizational goals, fostering responsibility, and adapting to dynamic environments, these principles ensure effective management of deviations and continuous improvement in organizational outcomes.