Feedback Nature of Control

Managers measure actual performance, compare it with standards, identify and analyse deviations. They then develop a program for corrective action and implement this program in order to arrive at the desired performance. However, some time-lag happens between detection and correction and this demonstrates the need for future directed control if control is to be effective. The time-lag also shows the deficiency of historical data such as from accounting reports which tells you in December that you lost money in June or July because of something that happened in May! The information only becomes a distressing fact. Managers need a system of control that will tell them in time to take corrective action, that problems will occur if they do not do something about them now!