Principles of Management

Principles of Management

The organizational control process is a process that involves the cautious compilation of information about company processes, systems, staff or management, in order to aid one to make decisions about each of these. Without control, an organization or a firm would not run smoothly. The groups in the organizations that are normally in charge of this duty are the managers. They set up systems that control the organization. There are four steps in which control systems are set-up to ensure maximum efficiency.

First, one establishes standards that are going to measure the performance of the organization. Secondly, one uses the set standards to measure the actual performance of the organization. Thirdly, the results are compared with the actual set standards. Fourth and finally, actions are taken to align the results with the standards. A firm, XYZ limited, is under audit. The external auditors find out that the firm does not maintain proper internal audit procedures. In an audit report, the auditors task the management of this shortfall in their running of the firm. The auditors then advise the management to follow the four steps of organization control to be able to handle the matter (Bose, 2004).

The management of XYZ limited first reviews the contents of their strategic plan. They go through the goals set for the audit department as an organizational unit. They then review the standards that had been set before as advised by the auditors and they set new ones. The new standards are set as the measure of performance for the audit department. The actual performance that the auditors had assessed is collected through the preparation of a formal report by the internal auditor. The report is then addressed to the managers. The management then reviews the performance and compares it to their newly set standards. They find out they are doing quite poorly since after computing the variance between the two, the difference acquired was quite high (Ogilvie, 2005).

Since the necessary corrective action had already been taken by formalizing new audit procedures, no other work was required to be done. Observation of the next quarter in their financial period was all that was required. The auditor was tasked with this duty and the management had the duty of repeating the steps to all the departments and doing it periodically to achieve the best organizational goals (Saxena, 2009).


















Bose, D. C. (2004). Principles of Management and Administration. New York, NY: PHI Learning Pvt. Ltd.

Ogilvie, J. R. (2005). CLEP Principles of Management: The Best Test Preparation for the CLEP. New York, NY: Research & Education Assoc.

Saxena, P.K. (2009). Principles of Management: A Modern Approach. New York, NY: Global India Publications.

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