MIT Sloan Management Review

Operations Management and Research

 

The Control Function of Management

By Kenneth A. Merchant

July 15, 1982

The control function of management can be a critical determinant of organizational success. Most authors discuss control only through feedback and adjustment processes. This article takes a broader perspective on control and discusses the following questions: What is good control? Why are controls needed? How can good control be achieved? If multiple control strategies are feasible, how should the choice among them be made? Ed.

After strategies are set and plans are made, management's primary task is to take steps to ensure that these plans are carried out, or, if conditions warrant, that the plans are modified. This is the critical control function of management. And since management involves directing the activities of others, a major part of the control function is making sure other people do what should be done.

The management literature is filled with advice on how to achieve better control. This advice usually includes a description of some type of measurement and feedback process:

  • The basic control process, wherever it is found and whatever it is found and whatever it controls, involves three steps: (1) establishing standards. (2) measuring performance against these standards. and (3) correcting deviations from standards and plans.1
  • A good management control system stimulates action by spotting the significant variations from the original plan and highlighting them for the people who can set things right.2
  • Controls need to focus on results.3

This focus on measurement and feedback, however, can be seriously misleading. In many circumstances, a control system built around measurement and feedback is not feasible. And even when feasibility is not a limitation, use of a feedback-oriented control system is often an inferior solution. Yet, good controls can be established and maintained using other techniques.

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