The Managers Impact on Control Mechanisms - Essay Example

Control Mechanisms Used At Carrier Corporation: Introduction: Carrier Corporation is a completely owned branch of United Technologies Corporation that deals with distribution of heating, ventilating, and air conditioning systems. It is also a universal leader in business refrigeration and food service appliances industry. The corporation has about one hundred and seventy markets in the world and is recorded to be employing over forty five thousand workers. The organization management over the years has been able to manage the corporation effectively and efficiently but there has been growing concerns recently over the manner in which they treat their workers, for example, the corporation is reported to be issuing photocopies of contract documents to the employees. Types of Control Mechanisms Used At Carrier Corporation: Carrier corporation is accredited for its success in business undertakings because of the various control mechanisms that the management use in day to day activities. These control mechanisms include the following; (Maund, 2001) Bureaucratic control; This can be defined as the application of regulations, procedures, policies, hierarchy of authority, written documents and other official systems to influence the workers behavior and evaluate their performance. Under this, Carrier Corporation has a well defined hierarchy of authority where the employees are subjected when undertaking the various duties in the organization, for example, the employees are answerable to their supervisors who in turn are answerable to senior managers who have the responsibility of reporting to the chief executive officer of the company. The corporation has laid down procedures and written documents to be followed by the entire human resources and that they have to comply fully with those policies. The corporation has been able to succeed in its undertakings because its bureaucracy control system has been efficient and effective Market control; This can be defined as the use of price contest to appraise output in an organization. Carrier Corporation through its marketing management has been able to analyze and compare the corporation’s profits and prices a process which has helped them to be efficient and effective in the organization. The marketing managers have developed strategies that have fostered the competitive advantage of the companies, for example they have been successful in opening of new markets thus increase the corporation market share and hence realizing considerable profitability. They have also incorporated technologies through training of employees and thus increasing their productivity. Financial control mechanism; whereby the management of the corporation through their financial analysts and accountants has been reliable in dealing with financial management of the corporation. The corporation is equipped with well qualified accountants, auditors, and financial managers that have ensured that sound management of the corporation’s finances is observed and thus have increased the efficiency and effectiveness of the organization. Also the corporation has well built structures of financial control and accountability, for example all decision makers are involved when it comes to spending of corporations financial resources. (Dale, 2001) Concurrent control; This is a process that takes place at the same time when another action is going on within an organization. In essence it is the regulation of activities that are regarded to be component of transformation procedure to make sure that they match with organizational principles. Under this, the corporation through use of advanced technologies has been successful in ensuring that the employees have adapted to the new changes without alteration of their output. For example, carrier corporation has developed refrigerators with new technologies which was an issue challenging to the workers since they had to familiarize themselves with the advanced technologies used. Comparisons And Contrasts Of The Mechanisms: The methods of control used in this corporation differ in some ways in that different control systems are applied to different departments. For example marketing control strategies are applied to marketing department, whereas finance control is applied to finance or accounting departments. Such strategies if integrated may not work together because they need high level of commitment and dedication in order to be efficient mechanisms. However, some control mechanisms work together and has proved to be efficient in the corporation business undertakings. For example concurrent control can be combined with market control in that marketing control mechanisms such as coming up with new methods of entry to the market require technology to be incorporated without stopping any activities being undertaken. Generally, some control mechanisms methods are similar to others in terms of their applications, for example financial and market controls are similar in the sense that both require accountability on the part of the employees and especially those involved. This is the main reason as to why the management of Carrier Corporation has integrated its activities, for example concurrent control with market control. (Sparrow, 1994) Effectiveness Of Control Mechanisms: Due to the application of these mechanisms the corporation has been efficient and effective in its business undertakings. This is explicitly seen in the way the corporation has diversified over the past few years through expansion of their markets. Also it can be clearly noticed through the considerable amount of profits that the corporation is making. The effectiveness can also be attributed to the level the way employees of the organization are performing their duties. According to latest revelations, reports suggest that the employees are being paid fair salaries and also they are entitled to fringe benefits. This is the reason why they have been motivated and thus producing good and commendable results. (Maund, 2001) Reactions To Use Of Control Mechanisms: There has been positive reactions to these control mechanisms and include; management being happy with increased productivity in the corporation, employees have been left to specialized in their areas of work, and that such control mechanisms for instance concurrent control through the use of new technologies have left the employees motivated to work and happy with the accrued remuneration attached to such developments. However, the applications of these control systems in the organization have not been met with good reception especially by the employees. There have been arguments that some control mechanisms such as concurrent control strains the employees in the sense that some activities regulated do not conform to the acceptable business standards and they lead to low morale by the employees. There is also discontentment by the employees because they feel that through the use of such control mechanisms they are being stretched by the corporation management to meet targets which are sometimes difficult to attain. How Control Mechanisms Impact Management Functions: Since management functions are employed in order to enhance the effectiveness of the corporation, the control systems have impacted both positively and negatively to management functions of planning, organizing, leading, and controlling. The control mechanisms impacts planning function in that, the management of the corporation has to come with a schedule of business activities that will match with the timing of control mechanisms used which has always been a challenging task to the management. The planning function has to cope with changes incorporated in terms of making decisions that will foster the control mechanisms if applied in conjunction with new technologies. The organizing function of Carrier Corporation has to deal with the issue of allocating the tasks to the employees. Resistance by the workers may be experienced if the control mechanisms used are rigid which affects the organization performance. So they have to convince the employees that everything will be okay and there interests will be taken care of. (Dale, 2001) The leading/directing function of the corporation will be faced with the tasks of demonstrating to employees how to do various activities and also involves the employment of charismatic leaders who can influence the employees towards positive attitude of performing their work. The Controlling function of the corporation will be impacted positively because the control mechanisms used will foster overall performance evaluation of the organization. The management will be able to monitor the results of any undertakings and thus can make any corrections or adjustments if need to do so arise. Conclusion: The managers’ impact on control mechanisms is great and immeasurable. It is therefore important that managers look for convenient, cost-conscious and appreciated ways of control mechanisms in order to build a dynamic, committed and, a motivated workforce that will result in better productivity and profitability of the organization thus enhancing effectiveness and efficiency of the organization. (Sparrow, 1994) References Dale, M. (2001): The Art of HRD: Developing Management Skills , Vol. 3, Crest Publishing House, New Delhi pg 48-83 Maund, L. (2001): An Introduction to Human to Human Resource Management: Theory and Practice: Macmillan, Palgrave pg 34-45 Sparrow, P. and Hilltop, J. (1994): European Human Resource Management in Transition: Prentice Hall, New York pg 111-123 Read More