systems. Remember, no system is perfect and no control system offers 100
per cent accuracy. Often, the concern is keeping operations and plans
within acceptable limits.
Three problems are commonly associated with control systems. Firstly,
such systems can be costly. Here the benefits of control and subsequent
improvements are outweighed by the cost of the control mechanism. This
often relates to large bureaucratic systems – layer upon layer of adminis-
tration is built upon each other. This is self-serving rather than customer
focused, often absorbing resources that would be more effectively
deployed in core activities. Secondly, control systems stifle effort and cre-
ativity. Such systems promote uniformity and conformance to pre-set tar-
gets. They become barriers to innovation. Thirdly, control promotes a
view of inspection as opposed to development. Systems often deal with the
symptom rather than the root of the problem. Here, we tend to be con-
stantly ‘fire fighting’ and looking for the quick fix as opposed to develop-
ing a better overall method of operation. The effect is to filter and/or
suppress information from those with the power to radically overhaul a
poor system.
■ Management control
Having reviewed the basic concept of control, we can now focus on the
key aspect of management control. Management control takes place at a
number of different levels within the organisation (see Figure 14.4).
Control criteria apply to strategic, operational and tactical levels. The con-
trol variables at one level become targets for the next level down.
Effectively, this means that a ‘cascade’ system of control is in operation.
Senior/strategic levels use fewer, more critical, control variables. These
are predominantly financial in nature and focus on divisional or strategic
Control 279Control targetControl targetControl target
Tactical level – staff
Operational level – middle managementStrategic level – senior managementFigure 14.4
Cascade control