Corporate Strategic Control
Strategic Control is the company’s internal tools used to measure the company’s achievement toward its main objective. After the company sets up the proper goal, management needs to prepare internal control or policy to follow the goal.
Strategic Control is the tool aim to maintain an effective plan to work toward the main goals. It will help to guide management, staff and organize the structure that is perfectly fit with future plans.
Effective control helps to guide proper leadership and align the management style to lead people to achieve goals. It will ensure that there are enough human resources to build a business for the future. The human resource that able to manage and lead the people to reach the potential point. The technology also needs to have proper control to achieve the target result.
Type of Strategic Control
Financial control is the procedure which the company monitors and control the direction and usage of financial resource. The process requires control and adjustment to make sure the business plan is being followed. It is the tools that help management to check if everything is running well and proper financial resource usage.
Effective financial control measures the company’s performance and compares it with the targeted result. It includes budgetary control, ratio analysis, and financial audit.
It is the tool to measure each company’s department’s daily operation. In order to achieve the target profit or sale, each department needs to set the proper target too. The production department must ensure that the budget production will be met. The controls are in place to measure on a daily, weekly, and monthly output. If the projected targets are not meet, we need to adjust the operation such as overtime work, add more machines and increase more workers.
Behavior controls is the internal policy use to guide the employee and management to follow the other internal control. It is included the operational budget and standardization.
An operational budget is the process of allocation of resources to achieve the operational target. The resource includes humane resources, raw materials, and labor.
Standardization is the level which the company sets as the minimum acceptable level for the employee to follow.