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Question: Discuss about the Control Management. Answer: Introduction: Control and controlling is considered as one of the most important managerial function like planning, organizing, staffing, and directing. This function is important because this function helps the management in checking errors and takes actions to rectify those errors for the purpose of minimizing the deviation from standards, and for achieving the stated goals of the organization. As per the modern concept, control is considered as foreseeing action but earlier this function is only used when errors were detected. The main function of controlling is to measure performance and conduct actions for ensuring desired results in the organization. it also helps the organization in ensuring that objectives of the organization are consistent with the accomplishments of the organization. It also helps in ensuring that organization is complied with all the rules and policies adopted by the organization. Therefore, it is very important for the organization to ensure that effective control syst em is implemented in the organization (Banerjee, n.d.). In the present era, control in management means setting the standards, measuring the actual performance of the organization, and take corrective action in this regard. Robert J. Meckler stated the definition of management control, and as per Robert, control in management is defined as systematic effort conducted by the management of the business for the purpose of comparing the performance with predetermined standards, plans, objectives for the purpose of determine whether performance is in line with these standards or not. If performance does not meet the predetermined standards then control management help in taking remedial action for the purpose of ensuring that both human and corporate resources are used in the most effective and efficient manner for achieving the corporate objectives. Management control system is a system which collects and uses the information for the purpose of evaluating the performance of various resources of organization such as human, physical, financial and also the whole organization in context of strategies of the organization. This system also influence of the organization resources behavior for implementing the strategies of the organization. Management control system can be both formal and informal in nature. It is used as tool which helps the management for directing the organization towards the strategic objectives and also in getting the competitive advantage to the organization. Management control is the only tool which is used by the managers in implementing the desired strategies (Guenther, 2011). This paper defines the meaning and important of control management system with the help of the case study, and for this purpose case study is Woolworths Limited (Retail chain). This paper explains the detailed meaning and elements of control management in the Woolworths Limited, and lastly paper is concluded with brief conclusion. Control management: An effective organization is the organization where mangers has understanding of managing and controlling. The main purpose of control is to help the management in motivating and directing the employees in their roles. Understanding the managerial control process and systems is necessary for the purpose of ensuring long term effectiveness in the organization. Without exercising enough control in an organization there is always threat of confusion and chaos. However, in case control system choking in an organization then organization will suffer from erosion of innovation and entrepreneurship. There are number of managers who use number of methods for the purpose of controlling their organization. These executives generally initiate with the mission statement of the corporation for the purpose of communicating the primary objectives of the company to the employee of the company (carpenter Bauyer, n.d.). Some objectives of the organization include other factors such as finding new mar kets for their products or maximize the earnings for primary shareholders of the organization. Top managers of the organization work towards the objectives of the organization by assigning the specific duties to direct reports. Subsequently, direct reports assign tasks to the employees within their department. Top managers then take various key steps for the purpose of controlling the progress of their goals (Jordan Portis, 2014). Management control system is considered as business tool which provides the idea of how well an organization is performing in accordance with the objectives stated by organization. A management control system is considered as: A way through which mangers can frame the objectives of the organization. A way through which mangers can frame the strategies and policies of the organization. A way through which mangers can assess the performance of internal corporate processes A way through manger show performances in relation to declared objectives and policies (Libraries, n.d.; Devos, Buelens Bouckenooghe, 2007).). This system provides the knowledge to the managers for taking decisions and corrective actions whenever necessary in the organization and this translates to the management control. Following are the ways through which top managers can control their organization: Establishing the performance standards- top managers can exercise control in their organization by establishing certain performance standards, and these standards are mainly described in way of clear objectives. This can be understood through example, president of the company desired to increase the stake of the company in the market and also the profit by 5 to 10%.he also wants that his marketing vice president introduce almost 10 new products within the year in the market. Generally, top manager has power to hold various managers accountable for completing the goals of the organization in form of job description. Job description is the summary of the primary job responsibilities of the employee, and it is necessary that these job descriptions must be clearly defined by both executives and human resources when direct reports are hired by top management. Measuring the improvement in the performance- Executives track the goals of the organization on monthly or quarterly basis, and through this way they determine whether their managers are on path to meet the goals of the organization. These organizations may have periodic reviews for communicating the managers who is falling short in achieving the goals of the organization. However, the most important tool used by top managers for controlling the performance is the performance appraisal (Suttle, n.d.; Objective Control, n.d.). Case study: There are number of organization which set strategies and goals for the purpose of leading the organization towards the success and growth. Generally, organization is consists of resources that are human resources and non-human resources which help the organization in its production activities and rendering other services. Various organization set control system which mainly assess the performance of the available resources in context of predetermined strategies and goals set by the organization. It can be said that management control system mainly helps the organization in achieving its objectives (Burke, 2013; Eddy, 2005). Woolworths is the retail organization which is engaged in selling food, liquor, and petroleum. This company is also engaged in home improvement also, and it is considered as the biggest retail chain in the Australia. Organizational structure of this company includes the board of directors, management board, and brands. The board of directors of the Woolworth has responsibility to evaluate and oversee the operations of the organization. Some major brands of Woolworth are BIG W, home improvement, supermarket and petrol, hotels, and liquor group. For the purpose of managing the number of operations and ensures efficiency, management of the Woolworths is involved in the management control system. Management board of the Woolworths includes number of individuals at different positions such as CEO, CFO, and managing director (Grabner Moers, 2013). All of these managers are specialist in their working areas, and they work in their areas for the purpose of collect, analyze and report information related to the performance of these areas. In includes the study of the organization strategy and also make the comparison between the predetermined strategies with the performance of the specific unit of a group within an organization. This system helps the Woolworths in achieving its predetermined objectives. This can be understood through example (Jagd, 2010); performance measurement in Woolworth can be done in these areas that are home improvements, hotels, and others. This performance measurement of the Woolworths includes the detail ed report on the units listed above. Performance measurement is done for the purpose of assisting the board of directors of the company on how to allocate the resources and how to evaluate the performance of these units. Generally, performance of these units is measured on the basis of number of factors such as income earned by the units before interest, tax, and individual relevant items. While conducting the performance measurement, organization not only reviews the report but also considers and reviews other factors such as revenue, expenses and financial cost of the group. Revenue of the organization is based on the fact that organization is able to be recognized, and expenses are depreciation and aromatization, employee benefits, and leases. Depreciation and aromatization are done by estimating the useful life of an asset in the organization, and this assessment helps the organization in determines by how much and after what period asset should depreciate. Employee benefit actually considered as liability to the company. These factors help the management in assessing the performance of the company. After ensuring control management system, organization can ensures effective growth in the sales which automatically increase the earnings of the organization. This can be understood through diagram sated below: It must be noted that each and every organization has its own culture, and this culture identifies the by the organization itself. This culture includes the values which govern the people in the organization and state how to behave and carry out themselves in the organization. Another option to check whether organization strategies are met by using the control system is to ensure that the employees behave as per the standards of the organization (Otley Emmanuel, 2013). This section of the control management control system includes the communication, coordination and motivation. It must be noted that, management control system includes various components such as action, result, and personnel controls. Component related to action ensures that employees must behave in such way that would benefit the organization. Component related to results ensures that outcomes related to any particular performance in an organization are as per the predetermined strategies. Personal control in the co ntrol management system ensures that the type of employees work in the organization is experienced and possesses required qualification, more than educational qualifications. This component also ensures that employees of the organization are loyal towards the organization and hardworking. In the management control system of Woolworths, some factors which contribute in the action control are administration, separation of duties, and those definitions of actions which are acceptable. The administration of the Woolworths is the sole decision maker in Woolworths. Board of directors and their role is also considered as important in the control management, and it can easily identified that decisions taken by the board makes after influencing the actions of the employees. Woolworth is the organization which is big in size and had different number of units, and may not require same management to conduct all its function effectively, which means it is necessary to separate the duties. This helps the management in reducing their workload and it also help in easily identifying those who are accountable for their particular actions. Definitions of acceptable actions includes the observing the actions of employee, tracking their actions, and provide reward for good actions. One wa y through which Woolworth rewards its employees is remuneration, and remuneration paid to the employees is clearly depends on the performance of the employees. Rewarding the good performance of the employees is considered very important because through this way employees get motivated and perform their best for the purpose of performing the actions which mainly aims in achieving the strategies of the organization. Instead of keeping the track of the good actions this activity also tracks the undesired actions of the employees and ensures that such things does not happen again (Dekker, 2004). Current remuneration structure of Woolworths is comprised of two component structures that are: Fixed remuneration which includes base salary, superannuation contributions, and if appropriate then use of fully maintained motor vehicle. The variable or at risk component which is based on performance and also includes cash based Short Term Incentive Plan (STIP) and a Long Term Incentive Plan (LTIP). The complete package of remuneration related to all executives is designed for the purpose of ensuring an appropriate mix of fixed remuneration which includes short term and long term incentive opportunities. The relative weightage of fixed and varied components in relation to target performance changes on the basis of role, level, and complexity. Generally, proportion of remuneration risk increases on the basis of organization responsibility and also accountability level. Woolworths requires significant proportion of senior executives under which total potential reward is at risk for the purpose of awarding the performance in both the short and long term. For the purpose of stating the relationship between the performance of the company and individual, Woolworths mainly aims to position remuneration of all senior executives at: The median of the relevant market for fixed remuneration. Third quartile of the relevant market for total remuneration for outstanding performance. Target of Woolworth in terms of fixed and variable remuneration is as follows (PC, n.d.): Percentage of total target remuneration Fixed remuneration STIP LTIP Directors report to CEO 40% 30% 30% Other senior executives 60% 20% 20% Generally, Woolworths makes sure that at the time when they are hiring the employees for any post or position, then at that time they must set such conditions which result in selection of deserving candidate. Woolworths also arrange some training programs for providing training to their employees because training increase their knowledge related to the particular job (Piltan, Mansoorzadeh, Akbari, Zare, ShahryarZadeh, 2013; Grimshaw, n.d.). There must be enough resources to facilitate the task done, which means Woolworths must allocate its resources in fair manner and there must be enough resources to facilitate the task done. This can be understood through example; director of human resource management must ensure that allocation of human resources are must be done in such manner as it make jobs to be done in efficient and effective way. Result of the action and performance control ensures that the employees of the organization must perform such actions which can be put in place. T hese dimensions generally differ from organization to organization (Cliff notes, n.d.). There is clear example related to tight and loose controls, and dimension shows the criteria at which it is easy to identify the impact of control system on the employees of the company. Tighter control greatly influences the employees of the company such as when considering the tight actions controls, then it can be easily seen that it has very high impact on the employees. They require that employees of the Woolworths are accountable for each and every action they conduct in the organization (Methner, Hamann Nilsson, 2015). They involve lot of constraints to the employees such as restrict the decision making to the higher authorities and in the hand of top management only. It also includes the determination of rules, procedures, and codes of conduct that must be followed by the employees of the organization. Those actions which are not acceptable must be communicated to the employees and organization must set some consequences for any such action. Woolworths can also ensure tighter control if frequent and detailed reviews are done related to the performance of the employees in the organization. When there is lot of diversity in an organization, then cultural control in this regard is generally loose or weak. Tight personnel control includes setting high qualifications for any particular job. As compared to tight controls, loose control does not have high influence on the employees of the organization. Loose controls have conditions and constraints. Lose control is not specific on the regulation of the employees and thus it can cause confusion and ambiguity in the working environment of the organization. After considering the above facts it can be said that management control system is very important aspect of the organization which involves large number of workers in the organization, and it also helps in structuring the performance criteria of the organization. If control management system of the organization is good then it can be said that performance of the organization is good and this results in long term growth and success in the organization. Conclusion: This paper defines the control management system with the help of the case study of Woolworths. Understanding the managerial control process and systems is necessary for the purpose of ensuring long term effectiveness in the organization. Without exercising enough control in an organization there is always threat of confusion and chaos. Control includes three components, and these components are setting standards, measuring actual performance, and taking correct action. In case of Woolworths, Woolworths, some factors which contribute in the action control are administration, separation of duties, and those definitions of actions which are acceptable. References: Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA. Banerjee, A. What is the Importance of Control in management?. Retrieved on 23rd November 2017 from: https://www.preservearticles.com/2012051932632/what-is-the-importance-of-control-in-management.html. Carpenter, M. Bauyer, T. types and Levels of Control. Retrieved on 23rd November 2017 from: https://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch15_s02. Cliff notes. Types of Organizational Controls. Retrieved on 23rd November 2017 from: https://www.cliffsnotes.com/study-guides/principles-of-management/control-the-linking-function/types-of-organizational-controls. 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