Significance Of System Control In Business

In modern business and corporate management, regulation has been and continues to be a significant undertaking for the growth of the business. Control is the gateway to other corporate functions, such as the performance of an entity identified by successful control. Over the years, various articles have been written defining and describing the growth, implementation, progression and relevance of management control in the enterprise. This essay addresses a recent article on management regulation, more so on the importance of control systems in the industry. Authored and published on 25th April 2017, the article by Assad, ‘Why are Internal Controls Important in Business?’ addresses the issue of internal controls in a business. The article explains what internal control is, as well as its purposes. According to Assad (2017), organizational internal controls are structural and procedural aspects that are set up in an organization to govern the decision making and behavior of the employees. Examples of controls include rules, budget policies, etc. More so, the article discusses the two major branches of internal controls namely: structures and systems. One major use of controls in a business establishment is that they provide direction as well as ensure that employees and managers remain on course for the achievement of goals and objectives set. Nevertheless, controls come with different demerits to the organization. According to the author, some of the shortcomings related with controls include: slowing things around the organization as well as limiting employee creativity among other limitations (Assad, 2017).

The article by Assad is an important reference material for managerial control related topics, more so when it comes to control systems in an organization. Drawing from Assad’s work, I have learnt about internal controls of business and their importance. In addition, I have learnt the merits that can be experienced with adoption of internal controls within an organization. With regard to the topic (Managerial Control), the article provides detailed insight into internal controls, their importance to a business as well as their downside in reference to organizational management. The article has several key terms that I have learnt. These include: internal controls, systems and structures, internal controls, as well as employee creativity.


Assad. S. (2017, April 25). Why are Internal Controls Important in Business? Retrieved on September 9, 2017 from

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