Organizational Control Definition

Definitions

Organizational control – this term consents with the management science, control is defined as a process through which managers direct attention, motivate, and encourage organization’s members to act in desirable ways that lead to achieve the organization's objectives (Jaeger and Baliga, 1985; Merchant, 1988; Ouchi, 1977, 1979; Snell, 1992).

Control mechanisms – describe the components of organizational control (e.g., standards, policies, norms) that are applied in control processes. Some researchers suggest that control mechanisms are either formal or informal according to their position along the formality continuum (Anthony, 1952; Barnard, 1938; Blau and Scott, 1962; Makhija and Ganesh, 1997; Merchant, 1985). Others, like Sitkin

Pfister (2009), there are several types of control, and they can be grouped into strategic, management, and internal control. Research defines management control from different aspects targeting mainly the detection of anomalies between planned and targeted. However, management control is known by its deliberate negligence of the process of strategic planning. Figure 1 shows examples on the variety of management control definitions. Strategic control refers to the process in which plans, activities, and performance results become evaluated, can be defined as, the critical evaluation of plans, activities, and results, by this means information is provided for future action (Schreyogg, and Steinmann, 1987). The limitations of management control have been overcome in part by the strategic control system by employing a feed forward approach that is future-directed and anticipatory. In its essence, feed forward control aims at meeting the problem of delay in feedback systems by monitoring inputs and predicting their effects on outcome variables’ (Koontz and Bradspies, 1972). Finally, the internal control concept by its strategic nature, its span of dominance, sufficiency to handle all business aspects, and its risk-oriented direction, provides for all kind of proactive and reactive controls related to the whole business from the environmental scanning proceeding with planning until receiving feedback information about the provided products and services. The

The evolution of formal controls happened in parallel with the development of business and the extreme desire to improve management of organizations. formal controls are designed to monitor the agency relationships within business setting (Jensen and Meckding, 1976). Different definitions of internal control have been previously introduced by researchers, section 2.1 shows some of those definitions. However, Millichamp, A. H. (2002) provided a comprehensive management-wise definition of internal control as the whole system of controls, financial and otherwise, established by the management in order to carry on business and safeguard the organization assets and secure the completeness and accuracy of