Control as a Feedback System

● Managerial control is essentially the same basic control process as that found in physical, biological, and social systems. Many systems control themselves though information feedback, which shows deviations from standards and initiates changes. In other words, systems use some of their energy to feedback information that compares performance with a standard and initiates corrective action. A simple feedback systems was shown in Figure 4.1
_______ New Plans________________
[Planning]-> Implementation of plans-> Controlling: comparing plans with results -> No undesirable deviation from plans
^
| Undesirable deviation
|
____|___[Corrective action]

Management control is usually perceived as a feedback system similar to that clearly which operators in the common household thermostat. This can be seen clearly in Figure 18-1, which shows the feedback process in management control. This system control in a more complex and realistic light than if it is regarded merely as a matter of establishing standards, measuring, performance and correcting for deviations. Managers do measure actual performance, compare this measurement against standards, and identify and analyze deviations. But then, to make the necessary corrections, they must develop a program for corrective active and implement this program in order to arrive at the performance desired.
Figure 18-1 Feedback loop of management control
>[Desired performance]>[Actual performance]>[Measurement of actual performance]>[Comparison of actual performance against standards]
|
~
^[Implementation of corrections]<[Program of corrective action]<[Analysis of causes of deviations]<[Identification of deviations]
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Fundamentals of Management : Controlling [BBA 2305]
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