Financial Stability of a Business and Its Correlation with Control Systems and Effective Organizational Structure

An effective organizational control system entails prerequisite rules, procedures and guidelines appropriate particularly when directing various roles and responsibilities within different organizational departments. These controls involve setting suitable rules and regulations with regards to employee behavior, best practices exclusive to individual departments and transparent procedures for financial transactions. Therefore, an effective organizational control system helps the organization stabilize its finances, increase its productivity and brand management and hence enhancing the overall growth and efficiency of the business.

Financial stability is one of the key objectives of any business. Thus, many organizations create and implement appropriate financial regulation procedures to strengthen the organizational control system helping the business stabilize its finances. Consequently, the communication channel throughout the organization is improved allowing managers to determine their efforts with respect to meeting the annual goals and prevention of fraudulence and erroneous practices in business. As a result, the effectiveness and efficiency of the organization are guaranteed.

Additionally, an operational organizational control system is significant in brand management as it helps to maximize sales to a target customer segment. Thus, it communicates the brand through marketing messages as well as packaging, the price, and features of the product. This prevents prospects of inconsistent brand messages and ultimately increasing productivity and proficiency of the organization. Also, organizational control helps departments work together and better. This is achieved through the weekly interdepartmental meetings and the enactment of specific communication procedures and regular management memos.

In as much an employer is not allowed to mismanage his/her employees, it’s important to provide them with proper supervision so as to maximize the productivity and efficiency of the organization. Thus, the establishment of effective management controls such as strategic objectives and suitable policies and procedures with regards to employee guidelines and behavior will be helpful in directing various operational activities, roles, and responsibilities of employees.

Therefore, the article relates directly to organizational structure and control system in the sense that, the performance of an organization is dependent on the efficiency and productivity of the type of organizational structure and control system in place. Thus, in order to ensure timely achievement of organizational goals and by extension greater performance, the structure, and control system of the organization must be operational, relevant and appropriate. As a result, the efficiency and productivity of the organization are directly proportional to the suitability of organizational structure and control system in place.