What Is Control and Why Is It Important?

  1. 15-1 Explain the nature and importance of control.

“Bailout” was the magic word that cost Domino’s Pizza 11,000 free pizzas. The company had prepared an Internet coupon for an ad campaign that was considered but not approved. However, when someone apparently typed “bailout” into a Domino’s promotional code window and found it was good for a free medium pizza, the word spread like wildfire on the Web. Somewhere, somehow, a lack of control cost the company big time.2

What Is Control?

Control is the management function that involves monitoring activities to ensure that they’re being accomplished as planned and correcting any significant deviations. Managers can’t really know whether their units are performing properly until they’ve evaluated what activities have been done and have compared the actual performance with the desired standard. An effective control system ensures that activities are completed in ways that lead to the attainment of the organization’s goals. The effectiveness of a control system is determined by how well it facilitates goal achievement. The more a control system helps managers achieve their organization’s goals, the better it is.

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