Result controls are not the only form of management control. Managers supplement or substitute the result controls with other forms of management control to meet the same objective, that employees should act in the best interests of the organization. One important controlling category is the so-called action control, which involves assurance that employees execute (or not perform) certain actions to benefit (or harm) the organization. Action controls can be implemented and run effectively only if managers understand the desired (or undesirable) actions, and have the ability to ensure that the desired actions occur (or the unwanted actions do not occur). Action controls have 4 (four) basic forms: behavioral constraints, preaction reviews, action accountability, and redundancy.
Behavioral constraints are a negative form of action control. Behavioral controls are meant to make things impossible, or more difficult for employees to do something that should not be done. Behavioral constraints can be applied physically (physically) or administratively (administratively)
Many companies implement various forms of physical constraints, such as locks on desks, computer passwords, and restrictions on access to areas that store valuable inventory and sensitive information. Some behavioral constraints tools are technically very complicated and expensive like magnetic identification-card readers, voice-pattern detectors, and fingerprint or eyeball-pattern readers.
Administrative constraints can also be used to limit the ability of employees to perform all or part of a particular action. One of the commonly used forms of administrative constraints is the limitation of decision-making authority. For example, lower level managers are only authorized to approve spending up to the $ 100 limit, and managers at higher levels up to the $ 500 limit. Another form of administrative constraints is the separation of duties. This separation of duties involves division of work to accomplish certain important tasks to some employees so that the task is not possible to be solved by one employee.
Preaction reviews
Preaction reviews are researching action plans of controlled employees. The researcher will approve or disapprove the proposed action plan, then request to be adjusted or request a more rigorous plan before final approval is given. Preaction reviews consist of several forms, both formal and informal. The formal form of these preaction reviews is the need to obtain approval for the expenditure of money for a certain amount.
Action accountability
Action accountability involves charging employees the responsibility for the actions they take. Implementing action accountability controls requires steps to : (1) define what actions are acceptable or unacceptable, (2) communicate the definition to employees, (3) observe or investigate what occurs, and (4) rewards good acts or punishes those who commit irregularities.
What actions are the responsibilities of employees can be communicated both administratively and socially. Matters communicated administratively include the use of work rules, policies and procedures, contract provisions, and company codes of conduct. The desired actions are certainly not always communicated administratively. It can also be delivered orally, either through meetings, in person, or through discussions. Generally, action accountability controls will be most effective if the desired actions are communicated well. But in reality that is not enough. Each individual employee must understand what needs to be done and be sure to do so that individual actions will be noticed, and rewarded or punished in a meaningful way.
Redundancy
Redundancy involves the appointment of more employees (or at least preparing an additional employee (or machine), for the execution of a very necessary task. This can still be regarded as a control because this form of control may increase the probability that the task is satisfactorily completed Redundancy generally applied to computer facilities, security functions, and other critical operations, but this form of control is not applied in other areas because it is very expensive.Action controls and the control problems
Action control, as any other control forms, is provided to remove one or more than 3 (three) control problems:
Many companies implement various forms of physical constraints, such as locks on desks, computer passwords, and restrictions on access to areas that store valuable inventory and sensitive information. Some behavioral constraints tools are technically very complicated and expensive like magnetic identification-card readers, voice-pattern detectors, and fingerprint or eyeball-pattern readers.
Administrative constraints can also be used to limit the ability of employees to perform all or part of a particular action. One of the commonly used forms of administrative constraints is the limitation of decision-making authority. For example, lower level managers are only authorized to approve spending up to the $ 100 limit, and managers at higher levels up to the $ 500 limit. Another form of administrative constraints is the separation of duties. This separation of duties involves division of work to accomplish certain important tasks to some employees so that the task is not possible to be solved by one employee.
Preaction reviews
Preaction reviews are researching action plans of controlled employees. The researcher will approve or disapprove the proposed action plan, then request to be adjusted or request a more rigorous plan before final approval is given. Preaction reviews consist of several forms, both formal and informal. The formal form of these preaction reviews is the need to obtain approval for the expenditure of money for a certain amount.
Action accountability
Action accountability involves charging employees the responsibility for the actions they take. Implementing action accountability controls requires steps to : (1) define what actions are acceptable or unacceptable, (2) communicate the definition to employees, (3) observe or investigate what occurs, and (4) rewards good acts or punishes those who commit irregularities.
What actions are the responsibilities of employees can be communicated both administratively and socially. Matters communicated administratively include the use of work rules, policies and procedures, contract provisions, and company codes of conduct. The desired actions are certainly not always communicated administratively. It can also be delivered orally, either through meetings, in person, or through discussions. Generally, action accountability controls will be most effective if the desired actions are communicated well. But in reality that is not enough. Each individual employee must understand what needs to be done and be sure to do so that individual actions will be noticed, and rewarded or punished in a meaningful way.
Redundancy
Redundancy involves the appointment of more employees (or at least preparing an additional employee (or machine), for the execution of a very necessary task. This can still be regarded as a control because this form of control may increase the probability that the task is satisfactorily completed Redundancy generally applied to computer facilities, security functions, and other critical operations, but this form of control is not applied in other areas because it is very expensive.Action controls and the control problems
Action control, as any other control forms, is provided to remove one or more than 3 (three) control problems:
Control problems
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Types
of action control
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Lack of direction
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Motivational problems
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Personal limitations
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Behavioral constraints
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X
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Preaction reviews
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X
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X
|
X
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Action accountability
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X
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X
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X
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Redundancy
|
X
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X
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Prevention versus detection
Action
controls can also be classified as either preventing or detecting undesirable
behavior. This distinction is important because controls that prevent
undesirable errors and mistakes are the most powerful forms of control, because
the costs as a result of unwanted behavior do not occur. Detection-type action
controls differ from prevention-type action controls, because detection-type
action controls are applied after the unwanted behavior occurs. However,
detection-type action controls can be effective when detection is timely and
results in the termination of undesirable behavior and correction of the
effects of harmful actions. Most action controls are
intended for prevention, except for action-accountability controls. Although
action-accountability controls are designed to motivate employees to behave
well, it can not be proven whether good actions have been done, until proof of
action is collected. However, when the collection of evidence coincides with
the actions taken, action-accountability controls can be approached to the
prevention of undesirable actions.
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