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Assumptions Underlying Preventive Control System


Following one the basic assumptions underlying preventive control system: 

(i) Assumption that qualified managers makes a minimum of errors.

It appeals to logic that more qualified the managers are the lesser is the probability that they will make mistakes. In fact, qualified managers are likely to make a minimum of errors. However, while evaluating the quality of the decisions made by a manager; emphasis must be laid so much not on the quantity of errors, but on the quality of errors. A manager could be wrong in only 2% of the decisions made by him; but the quality of wrongness may be such as to seriously endanger the survival of the company.

(ii) Assumption that management fundamentals can be used to measure performance

Application of managerial concepts, principles, theory, techniques (i.e. fundamentals of management) is much dependent on the state of knowledge concerning managing, possessed by a manager. Fundamentals of management are useful and can be applied in measuring managerial performance i.e. while analyzing negative deviations, it could be discovered whether the manager applied the established principles, techniques, etc. of management in the right way and with the right perspective.

(iii) Assumption that the application of management fundamentals can be evaluated

This assumption is different from the preceding one in that here we are interested in the measurement of the skill with which managers apply management fundamentals to their five functions of planning, organizing, staffing, directing and controlling. For instance, in a scheme of MBO, the ability to set and achieve verifiable objectives reveals some measure of a manager’s performance. Such performance (as revealed e.g. by MBO programmes) is a reflection on the knowledge and skill of a manager and his competence to occupy the particular managerial position.