CHAPTER 7
THE CONTROLLING FUNCTION
MEANING AND NEED FOR CONTROL
Controlling is a process of monitoring performance, comparing with goals, and
correcting work performance as needed to make sure performance meets objectives.
If done well, it ensures that the overall directions of individuals and groups are
consistent with short and long range plans.
Ensures that the right things happen, in the right way, at the right time.
Planning and Controlling are two inseparable functions of management. Without
planning, controlling is a meaningless exercise and without controlling, planning is
useless. Planning presupposes controlling and controlling succeeds planning.
Control is needed
To adapt to change & uncertainty
To discover irregularities & errors
To reduce costs, increase productivity, or add value
To detect opportunities
To deal with complexity
THE CONTROL PROCESS
Steps in the control process:
Step 1 — Determine Areas to Control
Step 2— Establish objectives and standards.
Step 3 — Measure actual performance.
Step 4 — Compare results with objectives and standards.
Step 5 — Take corrective action as needed
Step 1 — Determine Areas to Control
It would be impossible to control all activity in an organization. Consequently,
it is important for the manager to decide which activities should have the
control process applied.
Critical control points include all the areas of an organization's operations that
directly affect the success of its key operations, areas where failures can not be
tolerated, and costs in time and money are greatest.
Step 2- Establish objectives and standards
This means setting up of the target which needs to be achieved to meet
organizational goals. Standards indicate the criteria of performance.
Performance objectives are defined and the standards for measuring them are
set.
There are two types of standards:
Output Standards - measures performance results in terms of
quantity, quality, cost, or time.
Input Standards - Measure effort in terms of amount of work
expended in task performance.
Step 3 — Measure actual performance
Measurements must be accurate enough to spot deviations or variances between
what really occurs and what is most desired.
Effective control requires measurement.
Step 4 — Compare results with objectives and standards.
Need for action reflects the difference between desired performance and actual
performance.
Step 4 — taking corrective action
Taking action when a discrepancy exists between desired and actual performance.
If performance fulfills expectations (meets standards), no control problem exists.
However, if performance exceeds or fails to meet expectations, further investigation is
required to determine the cause.
TYPES OF CONTROL
Some major control types are based on timing. These include feed forward
controls, concurrent controls, and feedback controls.
1. Feedforward controls/ Preliminary
Employed before a work activity begins.
Ensures that:
Objectives are clear.
Proper directions are established.
Right resources are available.
Focuses on quality of resources
2. Concurrent controls / steering controls
Focus on what happens during work process.
Monitor ongoing operations to make sure they are being done according to plan.
Can reduce waste in unacceptable finished products or services.
3. Feedback controls/ Post-action
Take place after work is completed.
Focus on quality of end results.
Provide useful information for improving future operations .
Based on the degree to which human discretion is part of the system A basic
control process can be either cybernetic or non-cybernetic
Cybernetic control system is a self-regulating control system that, once it
is put into operation, can automatically monitor the situation. One that is
self-contained in its performance monitoring and correction capabilities.
Non-cybernetic control system is a control system that relies on human
discretion as a basic part of its process .
CHARACTERISTICS OF AN EFFECTIVE CONTROL SYSTEM
The best controls in Organizations have the following characteristics
Future–Oriented Monitor able
Multidimensional Organizationally Realistic
Economically Realistic/ Cost Effective Flexible
Accurate Focus on Critical Control Points
Acceptable to Organization Members Easy to Understand
Timely Emphasis on Exception
Reliability and Validity Over-control versus Under-control
