Free Custom «The Controlling Function of Management» Essay Paper

Walt Disney is a worldwide entertainment private company that has several other subsidiaries of its own. Walt Disney uses control mechanisms that stress the regulation of its procedures and guidelines. The mechanisms are effective as they help the organization to achieve its goals. This has made the company succeed both nationally and internationally. The company’s key control mechanisms focus on budget system, audit management, financial and performance standards. Budget control is aimed at aligning company’s costs and financial operations. Such kind of control has enabled the Walt Disney company to diversify and make its way to new markets.. It keeps track of anything that comes in and gets out of the company. Walt Disney uses financial mechanism to control its financial activities, audit management to analyze and evaluate procedures, as well as management of the company, and performance standards to increase their output to input ratios.

The budgetary control mechanism has enabled the company to practice the expense control mechanisms like reduction of materials and equipment cost, it also made possible to control the balance of talented actors and support stuff and to improve marketing of movies, leading to their worldwide circulation. The mechanism has helped the company venture in production of clothing and toys in order to implement their sales budget and manage the costs that come with their entry to new markets.

 

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The budgetary control mechanism in Walt Disney has several drawbacks. One of the main drawbacks is the tendency to save costs by limiting the number of trained actors. Such short term decisions can cause long term negative effects in terms of profit maximization. Unconsciously, the company could be risking to lose potential actors, who might end up being a magnificent source of input to the company. This would be aggravated when a competing company with similar mode of operation tends to take the risk of hiring more actors, thus, getting more chances to succeed in future as the public would be drawn to its production due to the variety of actors it will advertise. Budgetary control mechanisms help the company to work with the money it has, but it is insufficient for the company to use only these mechanisms, as the practice shows it is not enough to have them is case the company needs to make significant changes.