The Different Types of Organisational Control

Now that we’ve established how important it is to recognize organizational control, let’s take a closer look at the types of control that occur within the workplace.

To start, there are four main categories that control falls into:

  • Physical control – the amount of inventory you have on hand, your quality control guidelines, and how well your equipment and facilities are maintained;
  • Human control – including human resource functions such as placement, training, benefits, and appraisals;
  • Information control – considers how well you can analyze sales trends, your ability to track the economy, and public relations; and
  • Financial resource control – which involves avoiding debt, managing cash reserves, and paying bills,

These categories aren’t presented in any specific order, but perhaps it’s important to note that without proper financial control you won’t be able to organise any of the other areas on the list. Financial control is the foundation for any successful business. Learn More

How Important Is Organisational Control?

While at times it may seem like allowing employees free reign over their tasks is best, it’s important to remember that organisations have established methods of control for a variety of reasons.

Control methods are often put in place to make sure deadlines are met, to control the number of errors that are made, and to ensure overall success.

There are four main things control does for an organisation:

It helps everyone within the group adapt to environmental changes;

Reduce the instance of error;

Manage complexity within the organisation; and

Minimize operating costs.

Each of these factors is incredibly important, especially in today’s turbulent economy. No one can afford to make mistakes that cause us to lose clients or waste money on unnecessary expenses.

For example, a few years ago the beautiful fountain in front of the Travelers Insurance corporate headquarters in the US broke down.

It would have cost $60,000 to repair the fountain. Would you spend $60,000 on something like that today?

Of course, it would look terribly unprofessional to have a broken fountain outside the building, so the CEO instead authorized the company spend only $20,000.

They used that money to fill the fountain with dirt and plant a tree. In the end, they’ll save thousands of dollars because the tree will require very little maintenance.

In this New Year we’re going to take a close look at how well you control your organisation.

You’ll soon see how your communication, influential, management, and leadership skills must all come together in order for you to keep a tight grip on the reigns!

Want to improve all of the above skills? Do so for free on our free management training course!

Thanks again,


Sean McPheat

Managing Director

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