Control processes refer to the gathering of information to enable proper decision-making. The information is usually collected from a system, individual, or group of people. According to Schermerhorn, managers adopt control systems with the following crucial steps in mind: establish standards, measure performance, compare set standards with actual performance and take corrective actions.
On the ft.com website, there is an article on UBS bank explaining how the Swiss bank intends to eliminate its investment bank so as to focus on the profitable business of wealth management. This will result in the loss of numerous jobs not only in the investment bank but also in the auxiliary functions within the group.
UBS bank operates in the banking and financial services sector with a client base spread across 50 countries. Its main services are investment banking, wealth and asset management. The bank suffered an enormous loss in 2007, in the mortgage markets leading it to a rights offering. This was meant to raise additional funds to bump the diminished capital reserves.
The effect of retrenchments can be viewed as a management control process since it seeks to enable the achievement of one of the main strategic objectives-profitability. This is a short-term and reactive measure since there is a need to act immediately by the bank. The long-term corrective action will come from the learning initiative that they are undertaking from Porsche coupled with the hiring of new, talented individuals. That calls for upgrading of the human resource department as a measure to form strong basis for future recruitment. Human resource department is currently viewed as the most important department in major companies.
As a student, this is an eye-opener on the need to be up-to-date with new technologies while ensuring that when in employment the employer constantly feels that I am adding value to the organization. Being up-to-date implies I will be knowledgeable of efficient and effective ways of conducting business. I will be able to offer more than one skill. This will make me an asset to the company in more than one way. This is also relevant in the event that I want to start my own business. The job market requires that one is versatile; therefore, there is a need to equip oneself with new and pertinent skills. Versatility means diversifying in different fields in a bid to survive in the job market.
Furthermore, one should strive to be informed with the operations of successful companies in the market and also know about the on-goings of competitors within the industry. This ensures that market-share is maintained, and the organization remains relevant in the market. This is because learning from others encourages innovation.
References
Schermerhorn, John. Management 11e. Canada: John Wiley and Sons Inc. 2010
Schafer, Daniel. “UBS ready to take axe to investment bank”. FT.com. The Financial Times Ltd. 23 Oct 2012<http://www.ft.com/intl/cms/s/0/feb07dcc-1d37-11e2869b00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies%2feed%2F%2Fproduct#axzz2ACUrvEJp>
