Accounting technicians scheme west africa


(a) Adapting to changing condition



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(a)
Adapting to changing condition
The modern business operates under conditions of uncertainty. The conditions in existence and observed during planning phase may change so fast that it becomes difficult to achieve the set goals. A properly designed control system can help managers to monitor and respond to changing conditions.


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(b)
Minimizing Errors
Small errors can accumulate and become big problems. Every small error is going to cost some money and ultimately affect goal achievement. An effective control system can anticipate the errors, so that preventive steps are taken to avoid them.
(c)
Coping with Organizational complexity As the scale of operations of an organization increases, the organizational structure becomes complex. Direct personal supervision becomes inadequate to monitor and take corrective measures. To accomplish goals effectively under these conditions, a well-designed control system must be put in place.
(d)
Minimizing cost
Control helps to reduce costs. A well-designed control system can eliminate or reduce wastages and losses (non-value adding activities) and hence, minimize Cost.

E.3
Importance/Usefulness of Control
The fact that goals have been set and various activities planned to achieve them is not enough to guarantee success. Controlling is a management function designed to monitor and ascertain whether goals are being met and to take corrective action, if necessary, to ensure effectiveness. Control is needed to a) standardise performance through setting of benchmarks b) increase efficiency through reduction of waste c) safeguard organisational assets from theft, waste and misused) standardise quality to meet engineering and customer specifications e) set limits within which delegated authority can be exercised. f) measure the effectiveness of management plans and programmes g) measure the job performance of all organisational members h) make changes in the operational environment in response to changins in the external environment

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