Control Mechanism

Control Mechanism

All types or organization utilize some control mechanism that help a way in which the organization performance can be measured and ensure that the plans and goals are been meet. Wal-Mart use many of these control mechanism to measure and evaluate its performance; however, the essential control mechanism use by Wal-Mart are budgetary control, financial control, management audits, and performance standards. Although these control mechanism are measure the effectiveness and efficient of Wal-Mart organization they come with negative and positive reactions that can help the organization o cause damage to it. Because the reaction of these mechanism positive or negative they all affect the four function of management. The control mechanism use by Wal-Mart are essential to discover its weakness, reinforce it strength and solidify Wal-Mart' Organization as the world largest retailer.

Four Types of Control Mechanisms

Wal-Mart is an organization that uses multiples mechanism control; budgetary control, financial control, management audits, and performance standards. Budget control is use by Wal-Mart to monitor expenditures throughout specific periods of times, mostly yearly Old Dominion University Self-Study (2000-2002). Budgetary control is the way Wal-Mart keeps track of what comes in and out of the business. This way you can review what is being done, and what is being spent. Budgetary control also “compares the results with the corresponding budget data to verify accomplishments or remedy differences” (Bateman & Snell).

Financial Control refers to the financial activities of an organization that "aims achieving desire return on investments" (Business Dictionary, n.d.).Wal-Mart Stores, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying “Management’s Report to...