Operational Control:
- The thrust of operational control is on individual tasks or transactions as against total or more aggregative management functions.
- For example, procuring specific items for inventory is a matter of operational control, in contrast to inventory management as a whole. One of the tests that can be applied to identify operational control areas is that there should be a clear-cut and somewhat measurable relationship between inputs and outputs which could be predetermined or estimated with least uncertainty.
- Many of the control systems in organisations are operational and mechanistic in nature. A set of standards, plans and instructions are formulated.
- The control activity consists of regulating the processes within certain ‘tolerances’, irrespective of the effects of external conditions on the formulated standards, plans and instructions. Some of the examples of operational controls can be stock control (maintaining stocks between set limits), production control (manufacturing to set programmes), quality control (keeping product quality between agreed limits), cost control (maintaining expenditure as per standards), budgetary control (keeping performance to budget).
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