Sign Of Inadequate Control Systems

Financial control and other control techniques are designed to provide adequate control for the organization. Often, however, management control systems are not working properly. Indicators of the need for a more effectively control approach or revised management control systems are as follows:

  • Deadlines missed frequently.
  • Poor quality of goods and services.
  • Declining or stagnant sales or profits.
  • Loss of leadership position or market share within the industry.
  • Inability to obtain data necessary to evaluate employee or departmental performance.
  • Low employee morale and high absenteeism.
  • Insufficient employee involvement and management- employee communications.
  • Excessive company debts or unpredictable borrowing requirements.
  • Inefficient use of human and material resources, equipment, and facilities.

Properly used, controls help management respond to unforeseen developments and achieve strategic plan. Improperly designed and used, management control systems can lead a company into bankruptcy.

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Control Systems And Techniques
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