Managing Information For Effective Control

The management of any organization must do the managing of information for the effective control system and develop a control system tailored to its organization’s goals and resources. Effective control systems share several common characteristics. Managers are responsible for controlling in the organization and it is a manager’s duty to improve the effectiveness of the organization’s control system; as can do a great deal to improve the effectiveness of their control systems.

These characteristics are as follows:

1. A focus on critical points

For example, controls are applied where failure cannot be tolerated or where costs cannot exceed a certain amount. The critical points include all the areas of an organization’s operations that directly affect the success of its key operations.

2. Integration into established processes

Controls must function harmoniously within these processes and should not bottleneck operations.

3. Acceptance by employees

Employee involvement in the design of controls can increase acceptance. Availability of information when needed. Deadlines, the time needed to complete the project, costs associated with the project, and priority needs are apparent in these criteria. Costs are frequently attributed to time shortcomings or failures.

4. Economic feasibility

Effective control systems answer questions such as, “How much does it cost?” “What will it save?” or “What are the returns on the investment?” In short, the comparison of the costs to the benefits ensures that the benefits of controls outweigh the costs.

5. Accuracy

Effective control systems provide factual information that’s useful, reliable, valid, and consistent.

6. Comprehensibility

The control must be simple and easy to understand.