The concept of control in business differs from that used in engineering, where controls are designed to work continuously, to use physical measures as their information inputs, and to work largely independently of human decision making. Thermostats and fuses are simple examples of engineering controls. In contrast, the control process in business always includes a human decision maker. In addition, the information on which control actions are based includes financial information, and the control activity is periodic rather than continuous.
The concept of control in business also differs from that used in military and police work, in which the need for coercive force is always possible, although undesirable, in achieving control. In business, control is achieved through others’ actions only with their cooperation.
Authority, Responsibility, and Accountability
In a small firm, planning and control are performed by a single person, usually the owner or general manager intimately familiar with the firm’s products, processes, financing, and customers. In a large company with many organizational units and a variety of products
The concept of control in business differs from that used in engineering, where controls are designed to work continuously, to use physical measures as their information inputs, and to work largely independently of human decision making. Thermostats and fuses are simple examples of engineering controls. In contrast, the control process in business always includes a human decision maker. In addition, the information on which control actions are based includes financial information, and the control activity is periodic rather than continuous. The concept of control in business also differs from that used in military and police work, in which the need for coercive force is always possible, although undesirable, in achieving control. In business, control is achieved through others’ actions only with their cooperation. Authority, Responsibility, and Accountability In a small firm, planning and control are performed by a single person, usually the owner or general manager intimately familiar with the firm’s products, processes, financing, and customers. In a large company with many organizational units and a variety of products
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