Stages of Management Control
Control means measuring the results of the action vs. the plans
- Establishment of standards
The first stage of the management control process is the establishment of standards, which will be the main source of information to compare the results obtained in the process. Here are some examples:
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Units purchased, Purchase price, Variable purchase costs, Financial costs of the area, Manufacturing period, Technological adaptation, Losses,
Returns for quality
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- Measurement of action results
Once the process that is being evaluated is finished, the corresponding process metrics must be taken that will allow us to keep track of how things are being done.
- Evaluation of the actions with the standards
One of the most important stages of the management control process is the measurement of the established standards with the results obtained. At this stage, the evaluator will be able to observe how far or close it is to the objectives set at the beginning.
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- Correction of deviations
Once the deviations are identified, they must be analyzed to find the root of the problem. The idea of this stage is to try to improve the process to achieve levels of excellence in the company.
