Importance of Control systems in management should be well understood. Control system ensures that every manager gets adequate information. The criterion for adequacy of information to a manager is his responsibility and authority that is in the context of his responsibility and authority, what type of information the manager needs. This can be determined on the basis of careful analysis of the manager’s functions.
If the manager is not using any information for taking certain action, the information may be meant of informing him only and not falling within his information requirement. Thus, an effective control system ensures the flow of the information that is required by an executive, nothing more or less. The management should understand and review the importance of Control systems.
There is another aspect of information for control and other function is the timeliness information. Ideally speaking, the manager should be supplied information when he needs it for taking action. For correcting the deviation, timely action is require by the manager concerned in the light of understanding the Importance of Control systems.
For this purpose one must have the information at proper time and covering the functioning of a period, which is subject to control. The control system functions effectively on the basis of the information which is supplied in the organization.
Since planning and control systems are closely interlinked, there should be proper integration of the two. This integration can be achieved by developing consistency of strategic objectives and performance measures. Prescribing performance measures which are strategically important, is quite significant because often it is said ‘what you measure is what you get’. In developing performance measures, two considerations must be taken into account.
First, the performance measures should focus on whether short-term profitability or growth and technological ascendancy or logistic efficiency or some other objectives should be of primary concern.
Second, the measures should relate to the managerial domain of each of the managers as each of them is responsible to exercise control in his own domain.
The management must understand the importance of Control systems so that the organization never loses its control over everything.