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Levels of Control

1. Operating Level Controls:

Controls at operating level are usually exercised by lower-level managers. They implement operating plans relating to day-to-day activities of the firm. That deal with monitoring of:

(a) Physical resources:

 Managers control physical resources like machines, equipments, raw material, semi-finished goods and final output. Physical resources helping generating output to achieve the shout-run objectives of the firm.

(b) Human resources:

Control of human resources refers to recruitment, selection, and training. Placement, performance appraisal and compensation policies for the employees.

(C) Information resources:

There should be control over access to right type of information at the right time.

(d) Financial resources:   

It is a scarce organizational resource. Funds are allocated to various units in the enterprise and controls are doped to ensure that money is spent effectively. The methods to control financial resources are budgets, ratios and financial audits.

2. Tactical Level Controls:

They control the departmental objectives and plans by monitoring department performance at regular intervals of time. These controls are exercised by middle level managers.

3. Strategic Level Control:

These controls are adopted by top-level managers. They ensure that strategic plans are implemented effectively. They assess the impact of environmental factors on organizational policies. Various external factors like technology, competition. Government regulation, suppliers, customers etc. affect organizational plans and, therefore mangers constantly monitor the environmental or external factors. In case of unstable environment which keeps changing frequently, monitoring should be done at shorter intervals, say monthly or quarterly while in relatively stable environment conditions, monitoring at longer intervals, like half-yearly or annual reporting can be effective.

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