Control is the administrative function by which performance is evaluated. Control is an element of the administrative process that includes all activities that are undertaken to ensure that actual operations coincide with planned operations.
When we talk about administrative work, we are forced to touch on the issue of control. Control is an administrative function, that is, it is a basic managerial task, which can be considered one of the most important for optimal managerial work.
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.
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.
Control Definition
Control is the administrative function by which performance is evaluated.
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 3 practical cases presented by the company «Bikesports CA» in its administration, finance and marketing departments.
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 are in line with 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… It has the purpose of pointing 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, there must be a process of monitoring the activities carried out. Second, there must be established standards or patterns to determine possible deviations from the results. Third, the control allows the correction of errors, from 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.
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.
Example
BIKESPORTS CA
Company founded by Enrique Ávila-Aristimuño in 1992.
This 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.
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
- The expenses produced by the changes made to the bicycles could be covered. Increase in 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 raised to cover expenses. New members can contribute ideas for the benefit of the organization. The obligations would be divided among the members.
Disadvantages
- The company would cease to have a single owner and would become of several people. 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 down 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.
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
- There is a greater exhibition of the product. An increase in sales would be achieved. With this new advertising, the sector that you want to attract (including athletes) would be won.
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 the attraction of consumers for the product. A decrease in advertising expenses would be achieved, because sponsors can be obtained to collaborate with the expenses. It could be carried out in several cities of the country. Customers or buyers would become familiar with it. product and with the company. You would win the sector you want to attract.
Disadvantages
- Lack of sponsors can prevent the event from taking 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 if the agreement with the beverage company is not achieved. It could only attract 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.
• 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. There would be no loss 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 orders would be fulfilled. The quality of the bikes would not be reduced.
Disadvantages
- Transportation costs would be paid for the transfer of the merchandise. The price of the product would increase.
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 bicycles with lug brakes would be delivered on time.This alternative does not generate additional costs 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.
Bibliography
Derkra College -
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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