Control of business activity
Control of business activity takes place at two levels - control from within the organisation and external control.
Internal control
Internal control involves the creation of management systems to control business activity. For example, there will be control systems:
- for managing the consistency and quality of products coming off a production line
- for the management of waste and pollution
- for monitoring employee absence rates
- to ensure that the best candidates are recruited to a company, etc.
A control system involves the creation of programmes and activities, which operate automatically. In the same way that the thermostat on your central heating system may switch it off when the temperature in your house goes above a certain temperature, a business control system will seek to keep activities under control. For example, if the production system is creating faulty products, this might be detected by an 'electronic eye'. Once the controllers of the system are aware of the fault they can put it right.
External control
There are a number of external controls which limit regulations about safe working practice, and the contents that can legitimately be put into products. Standards are set by organisations such as the British Standards Institute (BSI). Government appointed bodies regulate competition and take action against firms that try to compete unfairly with others. Other organisations like the Inland Revenue exert control over business activity by making sure that businesses pay appropriate levels of taxes on time.
Internal and external controls are designed to make sure that a business runs efficiently in working towards its business objectives, while complying with the objectives and requirements of the wider society in which we live.
Printing companies like Polestar have developed their own waste management systems as well as complying with external regulations relating to waste production and disposal.
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