Describe the business-control process and list the steps used.

While there four main steps to the control process in management, there are many aspects to be considered within each step.

The step and control process in management is a performance measurement where deviations can be seen in advance, and therefore corrected before a problem exists.  What follows are the four steps in the control process, including the aspects of each needed to use the model successfully.

1) Standards

Standards measure results or non-monetary outputs:...

While there four main steps to the control process in management, there are many aspects to be considered within each step.

The step and control process in management is a performance measurement where deviations can be seen in advance, and therefore corrected before a problem exists.  What follows are the four steps in the control process, including the aspects of each needed to use the model successfully.

1) Standards

Standards measure results or non-monetary outputs: trust, job and customer satisfaction, customer acquisition and loss, etc.  Standards often include the following. 

• Measuring the length of time it takes to achieve a goal.


• Measuring the cost of units, persons, outcomes, etc. in terms of production or financial cost each.


• Prioritizing income activities and inputs based on revenue generation.


• Determining market placement or the amount of business held by a particular item, group, organization, etc. 


• Measuring productivity or the cost of units based on man hours, etc.


• Setting goals or profitability based on market placement and productivity.

2) Performance 

Performance compares and contrasts actual accomplishment with intended accomplishment using clearly predetermined criteria. 

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  Control points or the high-leverage measurement are placed precisely within such points as income, expenses, inventory, product quality, attendance, production, ratio analysis of sales to working capital, net sales to inventory, assets to liabilities, net profits to net sales, profits to tangible net worth, net profits to net working capital, credit collection, inventory to net working capital, etc.

  
  

3) Actual To Expected Performance

Actual to expected performance is an overall ratio between what a business accomplished compared to what the business wanted to accomplish.  The standards and performance steps above are used to determine these ratios.

4) Deviation Correction

Comparing the actual to expected performance reveals correction opportunities, including inventory, production, personnel, creating best practices, cost analysis, etc., and thus avoid cumulative loss while increasing profitability.