Management control is aimed at organizing the work processes of employees to achieve the company’s goals. Each enterprise has resources that must be used competently to promote the business and form competitive advantages. The main ones are labor or human, financial, material, and non-material. Management control monitors their rational use and flexibility in an ever-changing environment.
It is a critical parameter since it can provide the right direction of activity in any situation. Company managers are very attentive to the personnel who have the right to make decisions to avoid failures. They consider it critically essential because problems can lead to financial losses, reputation damage, and even bankruptcy. The importance of management control can be seen in the case of the Under Armour store; this essay will present recommendations for improvement and a conclusion.
The store mainly relies on the control of the result and the staff, which are two components of effective management. The administration has come up with its system of rewards for good indicators and punishments for bad ones. They give employees of the shoe department a 10% discount for every ten pairs of shoes sold. Additionally, there is a performance competition for all employees, and the winner receives a childcare package at the end of the month. It consists of a certificate for one hundred dollars, a bottle of water, and a bracelet. Furthermore, the company has organized control of actions, which is based on the honest behavior of employees. It consists in eradicating theft by constant video surveillance and checking the contents of pockets and a backpack at the entrance and exit.
The main category, without which it will not be possible to achieve results, is personnel control, which is also called cultural control. It is aimed at self-discipline and observation of other employees. The company’s mission is “to make all athletes better through passion, design, and the relentless pursuit of innovation,” which contributes to the motivation of employees to work for a high goal (About Under Armour, 2021).
In other words, the management supports the team spirit and tries to show unity through their actions. For example, every month, they receive funding and buy lunches for the entire team. An alternative measure taken is the control of working hours; it acts as a strategy for punishing bad behavior. Managers have the right to give more and less time to the employees, based on their productivity, and meet the requirements of a minimum of 15 hours per week. At the same time, workers want to get more hours, which encourages them to increase sales. All these strategies and fairly strict control generally work well and allow the company to develop and avoid failures, but there are also negative aspects.
The first negative aspect that needs to be improved is the lack of staff training. When hiring, managers take care of issuing instructions only to the employees of the cash register. It happens because of the staff turnover, and the authorities do not see the point in teaching a person who will work for less than a year. However, if one looks at this question from the other side, a person comes to work and does not know what to do.
It can cause confusion or panic, bad results, and subsequent dismissal. According to the company’s concept, employees should contribute to sales to receive bonuses and strive for a common goal, but they cannot do this because they do not understand precisely how they should behave. The recommendation to correct this situation is to revise the principles of personnel control. In research from World Support Cycle (2018), two main methods of adapting a new employee are training and providing the necessary resources. The first implies a transparent goal and result, and the second is an opportunity to show the best qualities.
The second point is closely related to the first and consists of insufficient attention to personnel selection. It is the reason for the lack of training, which, in turn, depends on staff turnover. The solution to the problem is to pay more attention to the selection and placement of employees. Each person has certain qualities; therefore, the tendency to accuracy should be applied when laying out clothes, and mathematical skills and accuracy at the checkout. The company’s unwillingness to deal with this need worsens the quality of management, customer service, and profit growth.
The third point that needs to be corrected is the system of rewards for good work. Earlier, an example was presented in which an employee receives a 10% discount for shoes sold, which can be considered motivation. However, in practice, such a strategy has a more negative tone and forces people to fulfill the plan only for fear of punishment. The recommendation for solving this problem is the introduction of a new motivation system. It is generally accepted that money is the best motivation; therefore, it is worth implementing a strategy of additional payments. It will help people feel both community and competition at the same time and try for motivation, not out of fear.
The fourth weak point is the lack of control of pockets and bags when leaving the store. It passes quickly, and employees think they can steal something since they are not checked much. It rather affects psychologically since, in practice, the chances of being caught stealing are minimal. The solution to the problem may be to strengthen control measures to let employees know that management is attentive to its business. Besides, it would be possible to choose an alternative strategy and remove this type of control. Such a gesture will allow employees to understand that they are trusted, and increase loyalty, community, and mutual respect.
The last and most crucial point is that managers may not follow the rules or they are not clearly indicated. In other words, many employees have not even seen the precepts; consequently, they partly do not understand what can and cannot be done. Additionally, some may break the rules if they make good sales. To eliminate this situation, it is necessary to draw up a book of rules and a code of honor, which every new employee will be required to read and pass the exam. First of all, companies should work on their concept and reputation, not profit, since only such an approach will allow it to develop steadily and long-term.
To sum up, the Under Armour store applies working management control strategies, but several aspects need to be finalized. To confirm the theory that managers can make improvements, the example of Nike will be considered. One of the points of their business is the sufficiency and maintenance of human resources (Ferguson, 2017). They develop internal leadership, train, and provide a mentor to achieve the success of each employee. Additionally, the company evaluates work assignments to identify the employee’s compliance. Nike is an excellent example of cultural control, which ensures the company’s development for many years. Management control can help an organization get rid of most internal problems and generate stable growth.
About Under Armour. (2021). Underarmour.Co. Web.
Ferguson, E. (2017). Nike Inc. Operations management: 10 decisions, productivity. Panmore Institute. Web.
World Supporter Cycle. (2018). Summary management control systems: Performance measurement, evaluation and incentives. WorldSupporter Summaries and Study Notes. Web.