Confines of business controlling
Control system loses its effectiveness when standard of performance can not be defined in quantitative terms and it is very difficult to set quantitative standard for human behavior, efficiency level, job satisfaction, employee’s morale. I such cases judgment depends upon the discretion of manager. An enterprise can not control the external factors such as government policy, technological changes, change in fashion, and change in competitor’s policy.
Employees often resist control and as a result effectiveness of control reduces. Employees feel control reduces or curtails their freedom. Employees may resist and go against the use of cameras, to observe them minutely. Control is an expensive process. It involves lot of time and effort as sufficient attention has to be paid to observe the performance of the employees.
To install an expensive control system organizations have to spend large amount. Management must compare the benefits of controlling system with the cost involved in installing them. The benefits must be more then the cost involved then only controlling will be effective otherwise it will lead to inefficiency.