Analyze how the four steps of the control process and explain how each step contributes to the control function. Describe the three types of controls. How can the effectiveness of controls be assessed in an organization?
The four steps in the control process are: Establishing Standards and Methods for Measuring Performance; Measuring the Performance; Determination of Whether the Performance Matches the Standard, and Taking Corrective Action.
Concerning the Establishment of Standards and Methods for Measuring Performance, a company must develop, document and explain clear standards and methods for measuring particular performances. These must be specific and understood so effective measuring of tasks and responsibilities can take place. In this way, an enterprise can gain a good understanding of who is performing according to company objectives. Proper standards and methods for measuring performance helps a company tweak their processes as required for better results. Performance measurement helps them see where their processes and procedures need improvement.
Concerning Measuring the Performance, this must be done in a consistent, regular manner to facilitate proper data acquisition to m...
1. Analyze the four steps of the control process and explain how each step contributes to the control function.
1. Establishment of standards is the first step of the control process; this is where an organization comes up with the guidelines in which they will measure their performance (Shalini, 2012). If it is a very large organization with several goals that have other goals attached to it then the overall objectives will need to be broken down into specific goals so that an organization can see if certain goals such as production, cost, sales, quota and quality are being met.
2. Measurement of Actual Performance is probably the hardest step in the control...