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General Analysis and Critical Evaluation of the Proposed Management Control System Evaluation Essay

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Updated: Jun 10th, 2019

Introduction

The human resource function in any organisation is often charged with the responsibility of planning and controlling the human resource needs of the organisation. Organisations must have the right skills to be able to achieve their objectives and targets.

A control mechanism must be in place to enable the HR department perform its roles and functions in the most efficient way. This paper carries out an analysis and evaluation of a typical management control system adopted for use by the HR department.

Personal and Control Cultures

Recruitment

Recruitment entails getting the right worker for a given job and, therefore, the HR staff must be able to consult with the candidate to determine whether he or she has the right qualifications for the job. Recruitment interviews are an example of communication exercises where ideas are exchanged.

Without better communication skills, the HR staff will not be in a position to determine whether the responses given are accurate, thus, making it appropriate for the firm to hire the worker.

Information technology has become integral in the present day operations of firms. It has the potential of reducing HR costs, while also improving the quality of performance. Having an understanding of the basic software used in office operations helps the HR to offer quality performance and lower the overall costs of the function. In other words, it enhances efficiency of the department.

The right motivation as well as professionalism helps in boosting the level of one’s performance. It potentially influences the performance of other staff members, as well. Being proactive and working independently enhances initiative on the part of the HR.

A worker’s background must tally with the organisation’s culture, integrity, and ethics for the firm to achieve its intended success. HR staffs must be ready to fit within the cultural framework of the organisation to influence the rest of the workforce toward aligning in the same direction.

Drawbacks

The control mechanism does not identify the need for HR staffs to have leadership skills. Unless the HR staffs are leaders, their recruitment roles will never achieve the right workers. Strong leadership qualities enable recruits to follow on the staff and perform their roles to the expectation.

Promotion and Training

The HR is about planning and organising personnel resource such that the organisation can achieve its desired objectives. Thus, knowledge of the firm’s culture, design of jobs and position, as well as ability to select the right person and evaluation management are all critical for HR staff in as far as promotion and training is concerned.

It will enable the staff to determine areas that need additional skills and help in designing new skills that will be appropriate for the running of the organisation.

Drawbacks

Apart from employee tests, it is important to establish a mechanism that evaluates the actual performance of staff. Some people are capable of passing exams highly, yet they lack the practical ability to execute their roles. On the other hand, there are workers who would perform dismally on their tests, but perform excellently when it comes to execution of roles.

Cultural Controls

Because the executive management may issue cultural values expressed in complex terms, the HR department must transform the language without changing the meanings in order to make it easy for the staff to understand.

Drawback

The cultural values of a firm must not strictly be a reserve for the executive management to formulate. It should involve even the middle and lower cadre managers because they are also stakeholders in the running of the organisation. An all-inclusive culture value formulation will make the entire HR feel as part of the culture and, thus, perform excellently in its execution.

Action Control

The control mechanism must establish a standardised framework upon which judgments and measurements must be carried out. The main drawback of this HR control system is in its subjective and flexible structure. Such an arrangement gives a leeway to the HR staff to bend rules as they may find it suitable for them. In essence, this would end up affecting the quality of performance of the HR department.

Result Control

The HR department, like all the departments in the organisation, must seek to achieve cost efficiency. Its actions and decisions must be weighed against the compensation decisions, motivation, and turnover.

Drawbacks

The HR department needs to operate on its own budget for specific periods. This will enhance planning. Thus, the department must have its own financial results for each year to help in its financial planning and drawing of budgets. Relying on non-financial KPIs affects the quality and ability to plan financially for the department (Merchant & Stede, 2011, p. 236).

Conclusion

The human resource department within any organisational set up undertakes the role of planning the human resource and ensuring it is capable of achieving an organisation’s objectives. Control of the HR’s activities and operations is critical in enabling the organisation to enhance its performance.

The control system ensures that the HR staff has attained the right qualification in the department and ensures that the recruitment exercise obtains the right skills for the workers. HR staffs must have predetermined qualifications and personal attributes to enable them achieve greater results in their roles.

List of References

Merchant, KA & Stede, WAV 2011, Management control systems: Performance measurement, evaluation and incentives, Financial Times/Prentice Hall, Harlow

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IvyPanda. "General Analysis and Critical Evaluation of the Proposed Management Control System." June 10, 2019. https://ivypanda.com/essays/general-analysis-and-critical-evaluation-of-the-proposed-management-control-system/.

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IvyPanda. 2019. "General Analysis and Critical Evaluation of the Proposed Management Control System." June 10, 2019. https://ivypanda.com/essays/general-analysis-and-critical-evaluation-of-the-proposed-management-control-system/.

References

IvyPanda. (2019) 'General Analysis and Critical Evaluation of the Proposed Management Control System'. 10 June.

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