Design of Control

Newman has discussed  the procedures  for establishing control process. These procedures have following steps :

Definition of Needed Result 

The results that a manager is trying to obtain should be precisely defined. Vague results like trying my level best to increase sales does not facilitate control process Result should be defined in such a way so that it can be assessed properly. Thereafter, responsibility for achieving result should be linked to individuals. 

Establish Predictor of Results 

Deviations which are detected should be predictor of results. They must indicate the manager whether or not corrective action is required. Some of predictors are 

Input Measurement 

Some key elements can help the manager to assess final results. For example, in a manufacturing company incoming orders for purchase of goods will determine amount of production. Any change in price of raw material, demand for product, entry of new product will indicate the manager whether or not he will be able to get the desired results. If he cannot get the results corrective action should be taken. 

Performance at Initial Stages 

If results in the beginning are worst or better than desired result there is need to re-evaluate the plan. For example, monthly sales volume in first three months can provide information for future sales in the year. 

Measurement of Predictors of Results 

Next step is to develop criteria so that predictors can be examined for deviation. If the desired result is customer satisfaction number of customer complaints can be criteria for standard performance. Suppose 100 complaints are being received in two months. How many of them are answered and handled satisfactorily. This number should be decided. Once it is done it becomes easier to assess deviation. Similarly, if the desired result is increase in sales by  10% in a year, then the amount of sales per month can be fixed as standard. This standard can be number of units sold in a month. 

Information  and Feedback 

Manager has to develop means for collecting information on predictors of results. Communication network should be efficient to provide data on predictors, for example amount of sales per month. 

Evaluation 

The last step is to evaluate the information gathered on criteria and examine whether there are deviation from standards or not. If deviation is observed, corrective action should be taken. For example, if one supplier is not able to provide raw material timely, there is need to look for another supplier who can supply the required raw material timely. Sometimes there may be need to re-evaluate the plan and desired results.