ORGANIZATIONAL CONTROL IN A COMPLEX BUSINESS ENVIRONMENT

Presented by: 1. Ummul Khair Fatimah Bt Fadzil Rahman 2. Juliana Bt Jamal 3. Suhermiza Bt Sugiono 4. Natasya Belinda Bt Barindi 5. Puteri Aliah Farhana Bt Anuar 6. Raja Sufiah

1. DEFINITION OF ORGANIZATIONAL AND WHY IT IS IMPORTANT 2. STEPS THAT MUST BE TAKEN IN AN OVERALL CONTROL SYSTEM

DEFINITION & IMPORTANCE OF ORGANIZATIONAL CONTROL

It is defined as the systematic process that managers use to regulate organizational activities in order to make them consistent with the expectations established in plans and to help them achieve all predetermined standards of performance. Based on the definition, it implies that managers must: Establish performance standards. Develop mechanism to gather performance information in order to asses the degree to which standards are being met.

STEPS TO BE TAKEN IN AN OVERALL CONTROL SYSTEM

1) Setting Standards for Performance A standard must be set so that it can be compared with actual performance. It can be set for any activity or behavior within organization. Begins after organization have developed its strategic plan and managers have defined goals for organizational departments. Why it is needed? To meet customers satisfaction and quality that they expect. For organization that operates in several countries, this action is very important to maintain same standards in all country.

2) Measuring Actual Performance An organization must decide :

WHAT to measure WHEN to measure HOW FREQUENTLY to measure

3) Comparing Actual Performance with Standards To identify either actual performance meet the standards or not It means no deviation occur 4) Responding to Deviations If deviation was acceptable or no deviation occur, the response is to take no corrective action If the deviation was unacceptable, the response should be to take corrective action