1. introduction
The word administration comes from the Latin "ad" and means fulfillment of a function under the command of another person, that is, provision of a service to another. However, the meaning of this word underwent a radical transformation.
The current task of the administration is to interpret the objectives proposed by the organization and transform it into organizational action through the planning, organization, direction and control of all the activities carried out in the areas and levels of the company in order to achieve such objectives in the most appropriate way for the situation.
Control is an element of the administrative process that includes all activities that are undertaken to ensure that actual operations coincide with planned operations. All managers of an organization have an obligation to control; For example, they have to conduct performance evaluations and take the necessary steps to minimize inefficiencies. In this way, control is a key element in administration.
In this report, control will be developed as a phase of the administrative process, analyzing the different definitions used by administrators such as Stoner, Fayol, Robbins, among others; studying its importance, its classification and performance areas. We will also include the study of 5 practical cases presented by the company "Bikesports CA" in its administration, design, production, finance and marketing departments.
The main objective of this work is to study control as a key element of administration, which allows detecting errors in time and correcting failures in due course, thus applying the appropriate control mechanisms for each case.
2. Control as a phase of the administrative process
Throughout our lives we are involved in a series of organizations, whether formal or informal, that aim to achieve a common goal, through various established plans and through the resources that we possess. It is at this moment that the sense of administration is born, that is, that process carried out by the members of an organization to achieve its objectives.
Administration in a formal sense is one that is carried out in a company. It has four specific functions that are: planning, organization, direction and control; These in sets are known as the administrative process and can be defined as the various functions that must be performed in order to achieve the objectives with the optimal use of resources.
This process is carried out as follows:
As you can see, these four functions are not independent of each other, but interact together to achieve that the organizations achieve their goals.
1. Definition Of Control
Control is the administrative function by which performance is evaluated.
For Robbins (1996) control can be defined as “the process of regulating activities that ensure that they are being carried out as planned and correcting any significant deviation” (p.654).
However, Stoner (1996) defines it as follows: "Administrative control is the process that ensures that real activities conform to planned activities" (p.610)
While for Fayol, quoted by Melinkoff (1990), control "consists of verifying if everything is carried out in accordance with the adopted program, the orders given and the administrative principles… Its purpose is to point out faults and errors so that you can repair them and avoid their repetition ”. (p.62).
Analyzing all the aforementioned definitions, we note that the control has certain elements that are basic or essential:
• First, a process of supervision of the activities carried out must be carried out.
• Second, there must be established standards or patterns to determine possible deviations from the results.
• In a third place, the control allows the correction of errors, of possible deviations in the results or in the activities carried out.
• And lastly, through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections.
In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.
2. Importance Of Control Within The Administrative Process
Control focuses on evaluating and correcting the performance of subordinate activities to ensure that the organization's objectives and plans are being carried out.
From this it can be deduced the great importance of control, since it is only through this function that we will be able to determine if what has been done is in accordance with what was planned and, if there are deviations, identify those responsible and correct these errors.
However, it should be remembered that there should not only be ex-post control, but that, like the approach, it must be, at least in part, a forecasting task. In this case, the past can be studied to determine what has happened and why the standards have not been reached; In this way the necessary measures can be adopted so that in the future the mistakes of the past are not made.
Furthermore, with control being the last of the administrative process functions, it closes the system cycle by providing feedback regarding significant deviations against planned performance. Feedback of relevant information from the control function can affect the planning process.
3. Types of Control
Terry (1999) in his book “Principles of Administration” exposes that there are 3 types of control that are: Preliminary, concurrent and feedback control.
- Preliminary control, this type of control takes place before operations begin and includes the creation of policies, procedures, and rules designed to ensure that planned activities will be properly executed. Instead of waiting for the results and comparing them with the objectives, it is possible to exert a controlling influence limiting the activities in advance.
They are desirable because they allow management to avoid problems rather than having to correct them later, but unfortunately this type of control requires time and accurate and timely information that is often difficult to develop.
For example, a sales manager for a particular store may have a policy that any price changes, relative to published prices, must be authorized in writing by the manager, i.e. no field salesperson is allowed to alter some price. With this it can be seen that the sales manager keeps a control in his department through the existing policies, whose employees must comply for its greater operation.
- Concurrent control, this type of control takes place during the action phase of executing plans and includes directing, monitoring and synchronizing activities as they occur, in other words, they can help ensure that the plan will be carried out in the specific time and under the required conditions.
The best known form of concurrent control is direct supervision. When an administrator directly monitors an employee's actions, the administrator can concurrently verify the employee's activities and correct any problems that may arise.
For example, most computers are programmed to provide operators with immediate responses if errors occur. If you enter a wrong command, the program's controls reject the command and can still tell you why it is the error.
- Feedback control, this type of control focuses on the use of information from previous results to correct possible future deviations from the acceptable standard.
Feedback control implies that some data has been collected, analyzed, and the results have been returned to someone or something in the process being controlled so that corrections can be made.
The main drawback of this type of control is that by the time the administrator has the information, the damage has already been done, that is, it is carried out after the action.
For example, you have a company that has 3 branches distributed throughout the country: Branch A, Branch B and Branch C. The general manager has detected that branch A has serious financial problems, while its other two branches are operating correctly. It is here when the manager must decide if this information is sufficient cause to close said branch or should change the strategies they have been implementing.
4. Control Performance Areas
Control has many areas of performance, all the departments in which an organization is divided need to be controlled, therefore, the areas of performance depend on the existing departments in the company.
Among the areas of control within an organization are:
• Within the production area is quality control. This consists of verifying the quality (weight, resistance, consistency, color, flavor, among others) to ensure that they meet some pre-established standards. This may be necessary at one or more points, from the start, process and all stages to the final product. Early detection of a defective part or process can save the cost of more product work.
• There is also information control. In order to contribute to the good decision-making of the administrator, accurate, timely and complete information must be available. To obtain it in this way, the organization must have technologically up-to-date and effective systems, since these can help correct a problem more quickly.
Therefore, it can be said that information control consists of verifying that this information is truthful and verifiable, allowing administrators to be more efficient and effective in decision-making.
• Within a company there must be another type of control, such as cost control. One of the tasks of a good administrator is to save on costs, that is, not to incur high expenses in production. Cost control consists of looking for the reason for deviations in standard costs per unit. The manager may ask himself different questions: Have the prices of materials been increased? Is the labor used efficiently? Do the employees need additional training? Senior management must identify where control lies.
• In addition to the aforementioned controls, we can talk about correspondence control. In all companies, legal documents are drafted that, in some cases, are addressed to other national and international organizations, mostly drafted by the company's legal staff. This type of control consists of carefully verifying these documents, because these statements carry with them a lot of prestige and authority of the organization.
3. BIKESPORTS CA
It is the company founded by Enrique Ávila-Aristimuño in 1992. It is responsible for the manufacture and wholesale of mountain bikes of three sizes (20, 24 and 26). For 1994 the company managed to be among one of the best in the industry, with an annual production of 30,000 units and sales that exceeded 85 million Bolivars. 5 years later, Mr. Enrique Ávila-Aristimuño, who for that year was the president of the company, died, leaving it in the hands of his two sons, who in 2000 decided to sell it to a US firm called AMF Corporation. These new owners decide to redesign the entire functional organization chart, to make it equal to its other existing branches in the world. These changes brought consequences at all levels of the organization.
Case # 1 In The Design Department
The frames of the bicycles designed by experts in the field, were built with a very heavy material. The sales manager received several complaints about the weight of the bikes, noting that this was the reason why sales had decreased.
VARIABLE: Sales have decreased as a result of using a very heavy material on the bicycle frame.
Alternative 1:
Design a frame with another material (aluminum) that is lighter and that allows greater speed and comfort to its drivers.
Advantage
- Aluminum, in addition to providing less weight, is an economic material for the company. With this new design, the needs of consumers, including athletes, would be met. Innovations are introduced that would place the company above its competitors.
Disadvantages
- Long-term measure, since several performance tests of the new product must be carried out.Increase in the cost of the product, since in addition to the frame the brakes must also be changed, because these are designed for the weight of the old bicycle.
Alternative # 2
Completely redesign the bicycle with a more innovative design that also has less weight but has greater comfort, adding suspension in the rubbers, better seats, attractive colors, etc. All this in order to make the product more attractive to the public.
Advantage
- Greater variability in models to satisfy consumer tastes. It establishes a competitive level with other manufacturers in the area. This new design would generate an increase in sales.
Disadvantages
- It is a long-term alternative, because tests are needed to verify its acceptance in the market. Produces an increase in the cost of the product for additional accessories. It produces changes in the assembly line.
Alternative # 3
Buy the frames already built from another company, in this way Bikesports would take care only of the assembly of the bicycle.
Advantage
- It would save time and work in the manufacture of a bicycle.You can choose, from the variety of frames offered by the company we are going to buy, those that best suit the needs of Bikesports.
Disadvantages
- It generates more production expenses. Bikesports would become a dependent company, thus losing credibility with its clients. The cost of the product is increased, which could reduce sales.
Decision to make
The most advantageous option for the company is Alternative # 2, due to the fact that a new bicycle model is being introduced, which gives consumers various options when making their purchase. Although the cost of the product increases, future earnings would increase and would place us in a good position in the market.
Case # 2 In The Production Department
Erroneously putting on the Rin 26 bikes the brake pads of the Rin 20 bikes. The Sales Manager received complaints that the bikes have low braking effectiveness and have caused accidents to the people who drive them.
VARIABLE: There has been a reduction in sales due to customer dissatisfaction regarding the effectiveness of braking, caused by an error in assembly.
Alternative 1
Change the cleats that are being placed, wrongly, for larger ones that are according to the size of the bicycle.
Advantage
- Greater effectiveness in braking would be achieved. We avoid accidents and complaints from users. There would be greater reliability in the quality of the product on the part of the clients.
Disadvantages
- Increase in the cost of bicycles, due to the changes introduced. Delay in production due to the change of the studs.
Alternative # 2
Completely change the system of rubber lugs for a system of brake discs, which is commensurate with the size of the bikes.
Advantage
- Best bicycle design. New customers would be attracted by this change in the brake system. Greater reliability in braking. Accidents would be avoided, because this system provides greater safety than rubber lugs. For extreme athletes, this system offers greater confidence, which will allow an increase in sales. Disc brakes are more durable than rubber lugs.
Disadvantages
- Increase production cost. Spare parts for this brake system are more expensive. The frame needs to be redesigned, in the place where this brake system is placed.
Alternative # 3
Create some new universal rubber blocks, that is, it works for the three types of rins that the bikes offered by Bikesports use.
Advantage
- A single stud model would be used for the three types of rings. It would provide greater reliability and safety in braking.
Disadvantages
- It carries more production costs, since another more resistant material is needed for the creation of new cleats. This change in bikes would not make them more conspicuous for consumers.
Decision to make
Alternative # 2 is the one best suited to the needs of the company, because significant changes are being made that improve the quality of our bikes, make them more appealing to buyers, and increase sales, placing us above our competitors.
Case # 3 In The Finance Department
Motivated by changes in the design and production of the bikes, there have been a number of expenses that have been difficult for the company to cover, due to declining sales. The finance manager determines the problem and reports it to the general management.
VARIABLE: Due to the few sales registered, it has not been possible to cover the expenses generated in the production and design departments, which causes production to stall due to lack of budget.
Alternative 1
Apply for a loan from a financial institution to cover expenses.
Advantage
- Expenses incurred for changes made to bicycles could be covered. Increased production. Although this solution would bring us future debts, these could be covered with the increase in sales that we want to achieve.
Disadvantages
- This alternative would bring more debts to the company. An increase in interest rates, will produce an increase in the amount to be paid and if the desired level of sales is not reached, it can have negative consequences for the company's objectives.
Alternative # 2
Company shares can be sold to finance expenses and diversify capital.
Advantage
- The necessary money would be obtained to cover the expenses. New partners can contribute ideas for the benefit of the organization. The obligations would be divided between the partners.
Disadvantages
- The company would cease to have a single owner and would become multiple persons. The profits obtained in a period would be divided between each of the partners.
Alternative # 3
To cover expenses, the option of reducing staff could be used.
Advantage
- It would help cover production costs and the company can thus continue its activity.
Disadvantages
- This reduction of personnel would entail expenses in the payment of liquidations. There would be a reduction in labor, slowing production.
Decision to make
Alternative # 1 is the most favorable for the organization, since the money is being raised to cover production and design expenses through a loan. The company remains in the hands of the same owners and with an increase in sales it is possible to pay off the debt and achieve the profits.
Case # 4 In The Marketing Department
The company hired an advertising company to promote its new bicycle model with innovative changes. The marketing manager determined that advertising was misdirected and that the sector that was wanted to gain from advertising was not favorably attracted, causing a decrease in sales.
Variable: Sales have decreased as a result of using poorly designed advertising.
Alternative 1
Design a new advertisement aimed at suitable buyers (athletes, children, among others).
Advantage
- Greater product display occurs. An increase in sales would be achieved. With this new advertising, you would win the sector you want to attract (including athletes).
Disadvantages
- There would be an increase in advertising expenses.
Alternative # 2
Hold sports events that allow the active promotion of the product, such as a cycling competition in which the new bicycle model is promoted.
Advantage
- It would increase consumer attraction to the product. A decrease in advertising expenses would be achieved, because sponsors can be obtained to collaborate with the expenses. It could be done in several cities in the country. Customers or buyers would become familiar with the product and with the company. You would be able to win the sector you want to attract.
Disadvantages
- The lack of sponsors can cause the event not to take place, because it would entail many expenses for the company.
Alternative # 3
An agreement could be signed with a company of hydrating and energy drinks, which promotes our bicycles through competitions, giving one of them a prize.
Advantage
- Advertising of the bicycle would be achieved This promotion would be well targeted, since the bicycle would be associated with energy drinks, which are consumed by athletes.
Disadvantages
- The duration of the advertising would be limited, promoting the bicycle until the moment in which the prize is awarded. This alternative could not be carried out without reaching an agreement with the beverage company. It could only draw the attention of athletes, without interest to the other sectors that want to win.
Decision to make
Alternative # 2 allows greater contact with consumers, because advertising is being carried out through events that allow the participation of customers and potential buyers. In this way sales increase and the sector that you want to win is attracted.
Case # 5 In The Administration Department
Due to changes in the bicycle's brake system, an order was made for discs from a Japanese company. This company reported that the order would arrive one week late. The production manager notified the administrator that the production of bicycles with disc brakes was halted due to lack of material.
Variable: Production was suspended due to delay in ordering discs.
Alternative 1
Order discs from a national company to solve the problem in the shortest possible time to continue production.
Advantage
- The problem would be solved immediately, thus resuming production. It would not lead to losses in sales.
Disadvantages
- Production costs would increase. We would run the risk of losing credibility with our clients because national spare parts would be used and the quality of the product would decrease.
Alternative # 2
Call one of the company's overseas branches and place an order for pre-assembled bicycles to fill customer orders.
Advantage
- Customer requests would be honored. The quality of the bikes would not be reduced.
Disadvantages
- Transportation costs would be paid for the transfer of the merchandise. It would increase the price of the product.
Alternative # 3
Only manufacture the bikes with the stud system for the time it takes for the brake discs to arrive.
Advantage
- The order for bikes with lug brakes would be delivered on time. This alternative does not generate additional expenses for the company, as they would buy the discs or order bicycles abroad.
Disadvantages
- Customers accustomed to buying bikes with disc brakes would not be satisfied, as only those with lug brakes are being produced. Several customers would be lost due to failure to order disc bikes.
Decision to make
Alternative # 2 is the most appropriate to the needs of the company, because the product does not experience variations in its quality. In addition, credibility and confidence are not lost to customers accustomed to buying disc brake bikes. Although transport costs are generated, and the value of the price increases a little, the company does not lose its position in the market and satisfies the buyers.
4. Conclusion
Control is a very important element within any organization, since it is the one that allows evaluating the results and knowing if they are appropriate to the plans and objectives that the company wants to achieve.
Only through this function can errors be identified, those responsible be identified and faults corrected, so that the organization is on the right track.
Control must be carried out at any level of the organization, thus guaranteeing that the objectives are met. But it must be clarified that the control should not only be done at the end of the administrative process, but on the contrary, it must be carried out jointly, activities are carried out so that, in this way, they are solved more effectively and in the least possible way. possible time all the deviations that appear.
5. Bibliography
• ROBBINS, Stephen and DE CENZO, David. Administration, concept and applications fundamentals. Mexico, 1996.
• TERRY, George and FLANKLIN, Stephen. Principles of administration. Continental Editorial. Mexico, 1999.
• MELINKOFF, Ramón. Administrative processes. Panapo Publishing House. Caracas, 1990.
• ROBBINS, Stephen and COULTER, Mary. Administration. Fifth edition. Mexico, 1996.
• STONER, James; FREEMAN, R and GILBERT, D. Administration. Sixth edition. Mexico, 1996.
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