discussion 12

Unit 12 - Control

W H A T ’ S I N I T F O R M E ?

Reading this chapter will help you do the following:

1. Understand what is meant by organizational control.

2. Differentiate among different levels, types, and forms of control.

3. Know the essentials of financial controls.

4. Know the essentials of nonfinancial controls.

This chapter helps you to understand the key elements of organizational control, often

seen in the form of internal systems and processes, as they relate to the planning-

organizing-leading-controlling (P-O-L-C) framework. While there are many possible

forms and formats, organizational controls should serve two basic functions. First, they

should help managers determine whether and why their strategy is achieving the desired

results. Second, they should be an early warning system in cases where the organization

is getting a little (or a lot) off track.

Figure 12.2 The P-O-L-C Framework

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