Control Function of Management: Steps and Budgeting
This paper examines the control function of management as a continuous and essential organizational responsibility. It defines management control as the systematic effort to align operations with established standards and outlines the four steps of the basic bureaucratic control system: setting performance standards, measuring performance, comparing performance with standards, and eliminating unfavorable deviations. The paper also discusses the central role of budgeting in the control process, explaining how budgets serve as feed-forward, concurrent, and feedback control tools. The discussion emphasizes that control, unlike other management functions, never truly ends as long as an organization exists.
- Introduction to the Control Function: Why control remains a top management responsibility
- Defining Management Control: Formal definition and scope of organizational control
- The Four Steps of the Bureaucratic Control System: Setting standards, measuring, comparing, and correcting performance
- The Role of Budgeting in Management Control: Budgets as feed-forward, concurrent, and feedback tools
- Conclusion: Control as a never-ending management function
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What makes this paper effective
- Provides a clear, concise definition of management control before building on it with procedural detail, grounding the reader before introducing complexity.
- Uses a logical, sequential structure — the four-step bureaucratic control process — that makes the argument easy to follow and verify.
- Connects abstract concepts (control, standards) to practical organizational outcomes such as resource allocation and waste elimination.
Key academic technique demonstrated
The paper demonstrates process-based analytical writing — breaking a broad management concept into discrete, numbered steps and explaining the function and significance of each. This technique is common in business and management essays and helps transform conceptual knowledge into actionable understanding.
Structure breakdown
The paper opens by situating the control function within broader management responsibilities and explaining why it typically resides with top leadership. It then defines control formally and argues for its unique, ongoing nature. The bulk of the paper walks through the four-step bureaucratic control system in sequence, before closing with a focused discussion of budgeting as a practical mechanism that ties all control types together. The paper concludes implicitly through the budgeting section rather than a labeled conclusion.
Introduction to the Control Function
The management of any organization has critical roles to play in the smooth running of that organization. Daily functions may be held at the management level or devolved to junior levels of the organizational structure. One of the central roles that often remains in the hands of top management is the function of control. There are various reasons why this function remains with top management: it is vital in shaping the operational and strategic future of the organization, it requires total neutrality and fairness to implement, and it anchors the source of authority needed to ensure that control aspects are correctly carried out.
Defining Management Control
Control in the management of organizations can be defined as the systematic effort by an organization's leadership to provide direction on plans, standards, and objectives, and to determine whether operations are in line with the standards the organization has established as a guide. It is this control function that also recommends the necessary remedial steps to be taken in order to address or salvage a situation or process that is getting out of hand (Thorn, 2012). These are responsibilities that must be undertaken by an authority whose legitimacy derives from organizational leadership — not by individuals whose decisions can be easily challenged.
As this definition suggests, the aspect of control is predominantly responsible for the daily running of the business in relation to human resources, as well as for the quality of products that an organization may manufacture. Unlike the planning, organizing, and leading functions of management, the control function does not come to an end as long as the organization still exists — this job of management is never complete.
The Four Steps of the Bureaucratic Control System
The basic bureaucratic control system applicable to almost all organizations commonly involves four major steps.
Setting performance standards — This first step involves a consultative approach among various management personnel and, at times, external consultants, in the process of formulating performance standards that will guide the daily operations of the organization. It is important to ensure that the performance standards formulated are valid within the context of the prevailing laws of the region in which the business operates. This helps avoid conflicts of interest in the future and streamlines organizational operations.
Measuring performance — This is another significant step in ensuring the control process is implementable and practicable within a complex work environment. Performance here needs to be compared against the standards that have been set, and exceptional cases must be prioritized as they arise by both the human resources management team and the top management of the organization.
Comparing performance with standards — The validity of a standard lies in its ability to effectively address issues related to compensation, quality, quantity, and time. This comparison gives management an understanding of how implementable the standards are, and therefore how functional they are in enabling the organization to be run with less strain. If performance and standards are ever at odds, there is a need to review those standards.
Eliminating unfavorable deviations — In the fourth and final step, management examines the rate of deviation from the set standards. This analysis helps management make the necessary adjustments for the benefit of the organization and supports the effective implementation of control as a management function.
Conclusion
The control function of management is a continuous, indispensable process that ensures organizational operations remain aligned with established standards. Through its four-step bureaucratic framework — setting standards, measuring performance, comparing results, and eliminating deviations — and supported by effective budgeting practices, management control enables organizations to operate efficiently, allocate resources wisely, and maintain the integrity of their strategic and operational goals.
References
Thorn, R. (2012). Control: A function of management that prevents the system from failing. Retrieved April 04, 2017, from http://www.huffingtonpost.com/rayanne-thorn/control-a-function-of-man_b_1774166.html
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