Scope of Control:
Scope of control is a primary goal-oriented task of management in an organization. It is a process of comparing actual performance with the set standards of the company to ensure that the activities are carried out according to the plans and if not, corrective action is taken.
The scope of control is largely associated with power and has the power to influence people, decisions or processes. In a business setting, control is commonly used as a way of ensuring that the organization’s processes are achieving their goals. Below are the following scope of control-
Control over the organization: Control over the organization is accomplished through the development of organization charts and organization manuals. The organization manual attempts to solve organization problems and conflicts to make long-distance organization possible, enabling rationalization of organization structure, helps in the proper design of the organization and department.
Control over methods: Control of methods is accomplished by periodically analyzing the activities of each department. The tasks performed, the manner and time adopted by each employee, are studied with an approach to eliminate non-essential motions, tasks, and methods.
Cost control: The cost account analysis is performed by the cost accountant, setting cost standards for materials, labor, and overheads and comparing actual cost data with standard costs. Cost control is complemented by budgetary control systems.
Control over research and development: Control over research and development activities are highly technical in nature so no direct control over them is possible. So indirect control over them is exercised by improving the ability and judgment of research staff through training programs and other tools. Control is also exercised by having a research in businesses.
Control over personnel: The statement that ‘management is getting the people working through’ adequately underlines the importance of personnel control. All employees working at different levels should perform their prescribed duties well and direct their efforts in controlling their behavior. The individual director or personnel manager prepares a control plan to control personnel.
Control over policies: The success of a business organization depends, to a large extent, on how far its policies are implemented. Therefore the need to control policies is self-evident. In many enterprises, policies are regulated through policy manuals.
Control over wages and salary: Control over wages and salary control is performed by the method of job evaluation and salary analysis. This work is done either by the Personnel Department or the Industrial Engineering Department. A salary and pay committee is often formed to assist these departments in the task of controlling wages and salaries.
Control over external relations: The public relations department is responsible for controlling the external relations of the enterprise. It may write some measures for other operating departments that are helpful in improving external relationships.
Control over capital expenditure: Control over capital expenditure is used through the system of evaluation of projects, ranking of projects in terms of the rank power and appropriate capital for various projects within the organization. A capital budget is prepared for the entire firm. A capital budget committee reviews the project and proposes projects of benefit to the firm. Project analysis, the study of the cost of capital, capital budgeting, break-even analysis, etc. are some of the popular techniques of controlling capital expenditure.
Overall control: It is effected through budgetary control. The master plan is designed for overall control and all departments are included in this process. For effective control through the master plan, active support of top management is required.