Table of Content
Control process is a series of steps in setting standards, measuring actual performance and taking corrective action to ensure planning is executed and carried out correctly. It helps to keep track of errors that occur in order to meet and achieve the desired goal and correct where mistaken.
The control process involves four basic steps:
Step One: Establish standard of performance: Plans should be translated into something that should be performed. This performance can be in a form of goals that must be attainable, measured and realistic.
Step Two: Measuring actual performance: Once the standards are established you have to collect information, performance report on your suppliers and also do personal observation as to why your equipment break easily. Is it because consumers use it unwisely or because it not assembled as per instructions.
Step Three: Analysing deviation: This is when the management then ask himself/herself as to why the business standards are not met. He/she then decides whether to emphasis his/her way to control his/her suppliers to ease the situation or is change of suppliers necessary to meet the standard.
Step four: Taking corrective action: After the decision you made in step three as a manager you must then develop solutions for the situation to meet the performance or the goal of the business.
Component of leadership:
Motivation: A leader should motivate and inspire followers to keep going and raise their spirit towards attaining the goal of the company.
Problem solving: As a leader you have to solve problems that arise and face challenges and also come up with solutions as to how to overcome the problem.
Facilitation: A leader must influence and shape the behaviour of his/her followers in order to attain the planned task.
Representation: Leaders represent their followers in situations where interaction with other managers is involved.
Guidance: As a leader you must guide and direct your followers to keep them on track on how to move forward in the right direction and make best decisions
Types of power:
Coercive power: To have the power to persuade or force employees to act in a particular way against your will or setting consequences. The leader relies on threats or language to motivate.
Referent power: This power refers to the ability of an individual to attract others and being loyal towards the followers. This occurs when a leader is successful and has a good track record of success. He/she is able to influence his/her followers to copy him/her and walk on his/her footstep.
Creating an organisational structure basically involves defining the framework your business operates under.
Outline your governance plan: This refers to identifying roles in the organisation. The committee writes a business plan, obtain funding and develop their first proposal. The BOD must conduct activities; make contact and network with other Mc Donalds franchise to meet the objectives. A formal structure helps members to act more quickly.
Establishing rules for operation: Rules make up an organisations culture. This minimizes misunderstanding and confusion.
Distribute the work: People make specific changes to policies and practices in order to achieve their goals.
Top level executives: These are managers who have the responsibility to make wise decisions, goals, finance and operations to ensure smooth functioning.
Finance department: This department handles finance and money matters in the organisation. They ensure proper flow, correct investment and handling funds.
Marketing department: They take care of advertising and marketing needs. They make sure the company gets right exposure and maintain their brand image effectively.
Tactical: Tactical plans occur after strategic plans are outlined. This is sometimes called short-term action plans because they breakdown big goals and strategies into narrow, actionable tasks and they are monitored daily, weekly or monthly. A well-developed tactical plan is having specifically stated action assigned to particular employees with specific deadlines. Bold objectives and thoughtful strategies produce nothing if no steps are taken to put them into action. The goals and strategies give vision and the actions make the company plans real. Tactical plans are developed in functional areas like production, marketing, finance and personnel.
Internal growth strategy:
Product development: They identify and develop new market for the current product. They expand the market through new uses and expand sales through new uses for the product. This increases market penetration amongst existing consumers.Concentration: This is when the organisation decides to improve their existing product but without changing any factors. This is also used when the product has high growth potential. Concentration strategy is divided into 2: vertical and horizontal. Sappi faced a Vertical strategy because they had a lot of competitors within their company they were able to improve their competitive advantage by expanding their chain.
Divestiture: It involves selling some of the business to another company or this also leads to retrenchment. They may adopt or imply a new strategy different from theirs which no longer require their product. They will then obtain capital and use it to attain another company.
This is a way a company wants to maintain their profile. They may find that they focus more on some operational units then focusing on making profit. They can also sell because they are on debt and by selling they can pay outstanding debt, cut down costs, reinvest and focus on the co- business.
Some of the reasons why they sold the company:
Too many locations: They may have discovered that they are located in too many destinations.
Retirement: often the company is passed down to family members and they might have no interest or skills in handling the business
Looking for change: you sometimes want to do something different in your organisation and change is required. In some cases the owner has had enough running the business.