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Control Mechanisms Team Paper - Essay Example

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Control mechanisms are a part of management and marketing strategies aimed to manage, organize and direct changes and planning functions. For AIG, an American insurance Corporation, control mechanism is more than the act of regulation or governing. Both strategic planning and marketing intelligence are fundamental to the development of effective controls, since they attempt to assure the guidance of a business to its predetermined marketing objectives (Daft, 2003)…
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Download file "Control Mechanisms Team Paper" to see previous pages... The main types of control mechanisms used by AIG are administrative control and management control, budgeting an cost control, quality control and auditing. For AIG, control is a multidimensional activity. It is diagnostic and prognostic. It examines past activities and proposes future improvements. It monitors present activities to assess a company's health.
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It must foresee future barriers and prepare to overcome them. Though realistic and concrete, control must be concerned with hypothetical sales potentials and future goals. It deals with firm yardsticks and standards, yet requires flexibility (Dobson and Starkey 2004).
Control helps AIG management to reach goals efficiently with a minimum of error. From knowledge gained through control mechanisms, management is better able to relate resources and programs to goals. Control mechanisms are intertwined with planning. Without a plan there is nothing to control, and without control, marketing plans probably cannot be realized. Inseparable components of management, both use many of the same tools, such as sales forecasts and budgets. The general purpose of control mechanisms is to help achieve internal and external balance. ...Download file "Control Mechanisms Team Paper" to see next pagesRead More
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