4.1.6 Control as a process that ensures the effective achievement of an organization’s goal.

Control can be defined as a process that ensures the effective achievement of an organization’s goal. The control function includes accounting (collection, processing) and analysis of information on the actual performance of all departments of the organization, comparing them with planned indicators, identifying deviations and analyzing their causes; development of activities to achieve the goals. The appearance of deviations in the activities of the organization from the plan may require urgent decisions, which is carried out through the considered function of coordination and regulation.

Thus, the place and value of control is determined by the fact that it is a way of organizing feedbacks, thanks to which the management body receives information on the progress of its decision.

Control allows you to see the whole real picture of the state of production. And therefore the quality of decisions made and their timely implementation ultimately depend on its effectiveness.

First of all, we distinguish two types of control - strategic (or managerial) and tactical (or administrative).

Strategic, or managerial, control is aimed at solving strategic tasks and is closely connected, of course, with strategic planning ^* and management. ^*

Tactical, or administrative, control is designed to systematically monitor the implementation of current tasks, programs, plans.

There are also preliminary, current and final control in organizations.

In the literature there are a number of approaches to the selection of forms of control. For example, there are four forms: control of financial resources, control of material resources, control of human resources and control of information resources.

Some authors distinguish the following forms of control: production control: inventory management, quality control, financial control [].

In addition, there are also such types of control as financial, product quality, pricing, administrative (current) []. There are both functional and resource approaches. Naturally, each technique with a certain approach is legitimate, but, in our opinion, they suffer from some narrowness, one-sidedness. Therefore, along with the above types of control, the following forms of control should be highlighted: financial, production, marketing and product quality control.

Financial control is the basis of general management control and is carried out on the basis of receipt from each unit of financial reporting on standard forms. Financial control covers all aspects of the life of the organization - production, marketing and direct self-government. It includes budgets, cost-effective analysis and analysis of relative indicators and return on investment.

Production control includes six functions:

1. Routing, that is, a sequence of operations.
2. Load, that is, the distribution of work.
3. Production schedules that determine the time when each operation should be performed.
4. Preliminary estimate of the cost of work.
5. Dispatching is the process of streamlining work.
6. Dispatch, ending activity, which checks whether the plans are fulfilled.

Marketing control is based on:

• analysis of sales opportunities;
• market share analysis;
• analysis of the relationship between marketing costs and sales;
• monitor customer attitudes.

Quality control, including novelty, technical level, absence of defects in performance, reliability in operation, is one of the most important criteria for competition, winning and holding positions in the market.

The control process, wherever it is carried out, can be reduced to three stages:

1. Establishment of norms (standards).
2. Measurement of compliance with these standards.
3. Correction of deviations from the norms and plans.

This process is presented in more detail in Fig. 3.15.

Fig. 3. 15. Management feedback loop.

The organization’s control system, in order to be effective, must meet several requirements [].

1. Monitoring must be comprehensive. He is not the prerogative of any individual manager ^* . Each manager should exercise control as an integral part of his official duties, even if he was not assigned to do so.
2. Control can be neither targeted nor neutral. The main thing in control is the question of what, and not how to control. It must be operational.
3. Control should focus on results. Only measurable phenomena can be monitored. Control must be economical. The total cost of it should not exceed the results achieved with its help. The less control is required, the more effective it is.
4. The control system should be simple. Excess complexity creates confusion.
5. Control must be continuous in time.

In accordance with the specified requirements, the control system has been developed, which has the name "Controlling". The essence of this system, like marketing, is the ability to think from the perspective of the client. Controlling as a complete system is focused on identifying all the chances and risks of an organization, both external and internal, that are associated with the achievement of a strategic goal.

Having considered the modern system of organizing the management of the external and internal environment of the organization and management functions ^* , we can draw conclusions about what constitutes an excellent management. Having surveyed 62 companies known for their excellent management, eight signs were found that were present in each case [].

1. Propensity to action. In well-managed companies, special attention is given to action. They make plans, but not those that can destroy them. For example, Procter and Gamble, the list of new products is limited to only one page.
2. Simple structures and small numbers. Although all the companies that were studied were large, their divisions were organized according to the principle “the smaller, the better.”
3. Proximity to the consumer. In some firms, customer care borders on fanaticism.
4. Performance through people. Companies recognize that people (not equipment and technology) are key to productivity.
5. Autonomy, encouraging entrepreneurship. Well-managed companies are interested in not only the highest management levels looking for successful opportunities. Managers ^{* of} individual units are free to develop such capabilities.
6. Focus on core business values. The strategy ^{* of} each company is focused on its core value, which corresponds to the company's business style: after-sales service (from IBM), ideas and productivity. This setup permeates the company at all levels.
7. Do what you know best. Never engage in a business in which you do not know what to do.
8. At the same time soft and tight control. Well-managed firms choose several key parameters and tightly control them, allowing flexibility elsewhere. Trying to control too many parameters immediately leads to a collapse.

Although the analysis of the company focused on large companies, but these eight points apply to small firms.

1. The main thing is not to dig in the papers, but to act.
2. Do not complicate the structure.
3. Contact with people.
4. People are the key to performance.
5. It is necessary to allow slaves to be creators.
6. Focus on a few core values.
7. Do what you know best.
8. Control, but do not crush.

These basic rules will serve both the head of a small firm and the president of a large corporation.