Convenience

financial control
Concerned with the
organization’s
financial resources
430
Part 5:
Controlling
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is concerned with the organization’s financial resources. Monitoring receivables to make
sure customers are paying their bills on time is an example of financial control.
Structural
control
is concerned with how the elements of the organization’s structure are serving their
intended purpose. Monitoring the administrative ratio to make sure staff expenses do not
become excessive is an example of structural control. Finally,
strategic control
focuses on
how effectively the organization’s corporate, business, and functional strategies are succeed-
ing in helping the organization meet its goals. For example, if a corporation has been unsuc-
cessful in implementing its strategy of related diversification, its managers need to identify
the reasons for that lack of success and either change the strategy or renew their efforts to
implement it. We discuss these four levels of control more fully later in this chapter.
Responsibilities for Control
Traditionally, managers have been responsible for
overseeing the wide array of control systems and concerns in organizations. They decide
which types of control the organization will use, and they implement control systems
and take actions based on the information provided by control systems. Thus, ultimate
responsibility for control rests with all managers throughout an organization.
Most larger organizations also have one or more specialized managerial positions
called
controller
. A
controller
is responsible for helping line managers with their control
activities, for coordinating the organization’s overall control system, and for gathering
and assimilating relevant information. Many businesses that use an H-form or M-form
organization design have several controllers: one for the corporation and one for each
division. The job of controller is especially important in organizations where control
systems are complex.
11
In addition, many organizations are also beginning to use operating employees to help
maintain effective control. Indeed, employee participation is often used as a vehicle for
allowing operating employees an opportunity to help facilitate organizational effective-
ness. For example, Whistler Corporation increased employee participation in an effort
to turn its quality problems around. As a starting point, the quality control unit,
Strategic
control
Structural
control
Operations
control
Financial
control
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