Student Question

Describe the four steps in the control process.

Expert Answers

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The four steps in the control process are: Establishing Standards and Methods for Measuring Performance; Measuring the Performance; Determination of Whether the Performance Matches the Standard, and Taking Corrective Action.

Concerning the Establishment of Standards and Methods for Measuring Performance, a company must develop, document and explain clear standards and methods for measuring particular performances. These must be specific and understood so effective measuring of tasks and responsibilities can take place. In this way, an enterprise can gain a good understanding of who is performing according to company objectives. Proper standards and methods for measuring performance helps a company tweak their processes as required for better results. Performance measurement helps them see where their processes and procedures need improvement.

Concerning Measuring the Performance, this must be done in a consistent, regular manner to facilitate proper data acquisition to make informed decisions concerning performance. This regular measuring gives management substantial information so they can again make adjustments as necessary to their protocols.

Pertaining to Determining Whether the Performance Matches the Standard, company management compares measured results with the standards they previously established. Therefore, they can determine if performance is up to their expectations - or not. With this comparing, they can decide to abandon certain policies, procedures or tasks, modify them, or leave them in place.

As concerns Taking Corrective Action, a company must use the information gathered from the control process. Not taking action based on revealed information (which shows inefficiencies and/or poor employee performance) means they wasted their time and resources instituting the control process. They must take action that gives solutions to problems. They must then measure these corrective actions some time down the road to see if they are performing up to corporate expectations. Consequently, the control process is something that is ongoing in organizations to make sure that the business is performing optimally.

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