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What actions might an underperforming organization take to reach the break even point

Share through Email The control function of management can be a critical determinant of organizational success.

One more step

Most authors discuss control only through feedback and adjustment processes. This article takes a broader perspective on control and discusses the following questions: What is good control? Why are controls needed? How can good control be achieved?

  • This may assist you in focusing your attention on the specific tasks at hand, one by one, and provide you with important feedback about your progress;
  • It can take a long time just to get your ideas across, and longer to help people overcome their suspicions and break old habits;
  • First, be clear with yourself about what your natural tendencies and talents are;
  • In this section we'll look at a variety of these direction words and consider related preparation strategies;
  • Yet, good controls can be established and maintained using other techniques.

If multiple control strategies are feasible, how should the choice among them be made? This is the critical control function of management.

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And since management involves directing the activities of others, a major part of the control function is making sure other people do what should be done. The management literature is filled with advice on how to achieve better control. This advice usually includes a description of some type of measurement and feedback process: The basic control process, wherever it is found and whatever it is found and whatever it controls, involves three steps: In many circumstances, a control system built around measurement and feedback is not feasible.

What Is the Break-even Point and What Decisions Can Break-even Analysis Help an Organization Make?

And even when feasibility is not a limitation, use of a feedback-oriented control system is often an inferior solution. Yet, good controls can be established and maintained using other techniques. What is needed is a broader perspective on control as a management function: The first part summarizes the general control problem by discussing the underlying reasons for implementing controls and by describing what can realistically be achieved.

Break-even Point

In the second part, the various types of controls available are identified. The last part discusses why the appropriate choice of controls is and should be different in different settings. Why Are Controls Needed?

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  • Fixed costs are the costs incurred as a result of operating the business, such as overhead expenses, depreciation, rent, insurance and taxes;
  • Some models of democratic leadership might put the responsibility in the hands of a small group - a management team or executive committee - rather than an individual;
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If all personnel always did what was best for the organization, control — and even management — would not be needed. But, obviously individuals are sometimes unable or unwilling to act in the organization's best interest, and a set of controls must be implemented to guard against undesirable behavior and to encourage desirable actions. One important class of problems against which control systems guard may be called personal limitations.

People do not always understand what is expected of them nor how they can best perform their jobs, as they may lack some requisite ability, training, or information.

  • Allocate your time according to the relative worth of questions;
  • On the other hand, good management without a clear vision creates an organization with no sense of purpose;
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  • Leadership is about getting to the top, and being recognized as having the highest status.

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