How Important Is Organisational Control?

While at times it may seem like allowing employees free reign over their tasks is best, it’s important to remember that organisations have established methods of control for a variety of reasons.

Control methods are often put in place to make sure deadlines are met, to control the number of errors that are made, and to ensure overall success.

There are four main things control does for an organisation:

It helps everyone within the group adapt to environmental changes;

Reduce the instance of error;

Manage complexity within the organisation; and

Minimize operating costs.

Each of these factors is incredibly important, especially in today’s turbulent economy. No one can afford to make mistakes that cause us to lose clients or waste money on unnecessary expenses.

For example, a few years ago the beautiful fountain in front of the Travelers Insurance corporate headquarters in the US broke down.

It would have cost $60,000 to repair the fountain. Would you spend $60,000 on something like that today?

Of course, it would look terribly unprofessional to have a broken fountain outside the building, so the CEO instead authorized the company spend only $20,000.