In management control is a critical fuction. Management control problem can lead to large loses and possibly even to organizational failure. (Kenneth and Van Der Stede, 2004). Why controlling became the crucial thing on an organization or company? it because controlling handle the process of monitoring, comparing, and correcting work performance. (Robbins and Coulter, 2009). So, what the impact to the company or organization if you had bad controlling department or bad controling managers?
There is many thing can causes by bad control, such as bad final product that impact to the selling growth of companies or organizations. Can said, controlling are the final step on management process. Aside from that, controlling are important for managers to help manager know wether goals are being met and it provides information and feedback so managers feel empowring employees and helps protect an organization and its assets. (Robbins and Coulter, 2009) Good control or good management control means that mangement can be reasonably confident that no major unpleasant surprise will occur. Kenneth and Van Der Stede, 2004). Managers have to do controling step by step, there many control system that offering but there is one commonly used by managers, called cybernetic control system (Schermerhorn, 1996), these system has four steps on controling , the first step is established objectives and standards, then measure actual performance, after measuring manager compare the result with objectives and standards that have been made by mangers, and finally take necessary action (Schermerhorn,1996). DISCUSSION 7-eleven, the world largest chain convinience retailling industry, founded on Dallas, Texas 1927.
Based in Dallas, Texas, the company operates, franchises and licenses more than 7,100 stores in the U. S. and Canada. Of the 6,000 stores the company operates and franchises in the United States, close to 4,800 are franchised. 7-Eleven licensees and affiliates operate approximately 31,400 7-Eleven and other convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia (under PT. Modern International), Norway, Sweden and Denmark (corp. 7-eleven. om/AboutUs). With huge numbers of store that open around the world, a big company like 7-eleven have to control everything that happened on the company. From the product quality control to the management control. Everything have to run on the right track, or the company will lose their customer. To keep maintaining and controlling all 7-eleven store and make sure all store are running on the right way, management of 7-eleven on the mid-1989 decided to use cmputers programs to forecast and proposed store’s sale for the first five years.
A store that does not measure up to standards id often to closed. Jon Thompson, son of the founder and now the chairman, says that whe the store look like losers, “we would rather close them and take our licks” (1989). Jon Thompson purpose to take that decision is to keep the market or customers satisfy and to push down the cost so company gain higher profit. This decission are right, because this decision are apropriate to the definition of controlling, a process of monitoring performance and taking action to ensure desired result (Schermerhorn,1996).
On that age, 7-eleven becoming the leader in computerization of store operation. There is so many benefit that 7-eleven got with using computerized store operation, it help the distribution center to keep watching on customer need, so it helps distribution center to know what kind of product that market need on specific 7-eleven store area. Careful analysis is made of which items sell best in which store and see the trend of market. When the trend are change, 7-eleven can change the product that they are sell, they can replace the product with low bargain power by product with high bargain power.
This system caused product on each store can be different, but why not, as long as can keep the customers satisfy. On previous case, manager decision are the final step on control system, managers are decided to take action based on result from comparing the result of the market demand with management standards and objectivenes, that they have made when they decide to use computerize system. Commonly, managers using cybernatic control system. Cybernatic control system is entirely self-contained in its performance monitoring and correction capabilities.
There is four step in management control system (Schermerhorn, 1996), firstly managers have to made objectives and standard that they use to standarization and objectiveness when they monitoring performance. The standard are devided into two types, the first type are output standard that measure performance results in term of quantity, quality, cost, or time and the second type is input standard that measure work effoert that go into a performance task (Schermerhorn,1996).
Managers second step on controlling are measuring actual performance, the task here is to measure accurately the performance outcomes achieved (under output standards) and/or the performance input applied (under input standards). The third step is comparing the result with objectives and standards and the final step is taking necessary action (schermerhorn, 1996). 7-eleven are not only good on management control or store control that proof by how 7-eleven managers decide to using computerized system to keep their eyes on market, but 7-eleven also good on quality control. -eleven known as store that selling people daily needs, 7-eleven offering many thing, one of them are food and beverages. They sell snack, homemade bread, coffe, slush ice, you named it. What is the reason why they can still exist until this day selling those things? That is quality control. 7-eleven have a good quality control. There is three step on controlling quality of some product, begin with process control, on this step managers have to understanding how a process works, what material, equipment, and other resources are needed.
Then continuo with inspection, managers have inspecting the materials, materials with poor quality will made the final product with poor quality too. The purpose of inspecting is to ensure conformance to requirement before value-adding operating beging beside the inspection on this step managers have to do spot-check procedures or acceptance sampling, both are method that managers can use to controling the quality. With this method, inspector take a statistically determined random sample amd use a decision rule to deterimine acceptence or rejection of the lot based on the observed number of nonconforming items.
The final step is final inspection (Evans & Lindsay, 2002). 7-eleven always keep watching on the trends of market, and always try to make a renewal of product that they are sell and the quality of product that 7-eleven sell, company have to follow the market or consumer situation and needs, because customers are the final decider that deciding a company can keep running or stop. A company like 7-eleven are adopting theory of customer-driven quality (Evans & Lindsay, 2002), where quality is meeting or exceeding customer expectation.
The meaning of quality it self is the tottaly of features and characteristics of a product or service that bears on its ability to satisfy given needs, based on the American National Standards Institute (ANSI) and American Sociality for Quality (ASQ) that were standardized in 1978. This definition draw heavily on the product and user approaches and is driven by need to contribute value to customers and thus to influence satisfaction and preference. CONCLUSION Management control involves managers taking steps to help ensure that the employees do what is the best for the organization.
This is an important fuction because it is people in the organization who make things happen. Management control are necessary to guard against the possibilities that people will do something the organization does not want them to do or fail to do something they should do (Kenneth and Van Der Stede, 2003). If some company or organization control their self well and offering good products to market, that company will get consumer satisfy and loyalty. Good in control also made company get good social responsible.
Social responsibillity is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interest of groups other then themselves (Mondy, Sharplin, and Premeaux. 1991). On this case, 7-eleven, succesfull to get customer satisfy, loyalty, and social responsibel. It could be proofing by seeing how 7-eleven now growth becoming the largest convinience chain store in the world. Their succes are related to the good service that they offers and give to their customers. So, ontrol are so important because it helps managers know wether organizational goals are being met and, if their not being met, the reason why (Robbins and Coulter, 2009).
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