ER

controlling

Chapter Outline
.Meaningofcontrol Requirements of an effective control system
Featuresofcontrol Techniques of controlling
Elementsof controlling
process Traditional control techniques
Signifcanceof controlling Modern control technique
Scopeofcontrol Limitations of control

CONTROL
i CONCEPT OF
Beml is the regulation of work activity in accordance with predetermined plans to ensure the attainment
ixganizational objectives. Planning identifies the activities to be performed and controlling regulates those
tis Controlguides the activities in the desired direction. Success of planning depends on the success of
aroling. Therefore, planning and controlling go side by side.
Cumtol is the last function of management. Control reduces the chances of mistakes repeated in future
bagsting preventive steps. Controlling function identifies the deviation between actual performance and
jned (or expected) performance. Control ensures work accomplishment according to plans. Control eval
is performance so as to securethe best results of managerial efforts.
gunzons of control given by eminent management experts are as jollows:
"Conirol is checking current performance against predetermined standards contained in the plans, with a
EW to secure satisfactory performance." (E. EL. Breach]
He
is
ue measurement of accomplishment against the standard and the correction of deviations to
Bre atainment of objectives according to plans. Koontz and O'Donnell]
nale objective.
assures that resources are used efectively and efficiently in the accomplishment of an organisa
[Robert N. Anthonyl
Control evaluates the performance and applies corrective measures so that the performance takes place
rding to plans. [George R. Terry]
Cont
pans rol guides activities towards some pre-determined goals. It seeks to compel events to conform to
Control is a managerial function that provides direction in performance to the plans.'Haynes J.andK.Massie]
Rosen]
Control envisages system that pinpoints the reasons for happening of events and take corrective actions
o
Tectfy the wrong track, if any. [Earnest Dale]
130 Pinciples of Management and Business Communication

Therefore, control is a process that guides activities towards attainment of

predetermined
chsures efhcient execution of plans and successful accomplishment of organizational goals. goals. Conirol
8.2 FEATURES (OR CHARACTERISTICS) OF CONTROL
The features of controlling may be understood on the basis of the following points:
Basic function of management Control is the concluding managerial function, and it
involves checking
and correcting other functions. Effective control is required to gettbetter results and to achieve
organizatiootnalher
objectives. There is noscope for controlling if everything goes well and according to plan. Therefore, all
functions of management are linked to controlling functions.
Continuous process Controlling is a continuous process, having no definable ends. It involves review of
performance and revision of standard operations on acontinuous basis. Control continues to exist as
an organization exists. long as
Dynamic activity Control involves continuous review of standards of performance. Control results i
corrective action that leads to change in other functions of management. The process of control shouldk
modern and dynamic so as to cope with new business environments.
Pervasive function Control is a pervasive function as it is required at all levels of management and in all
types of organization. Controlling is done throughout the length and breadth of the organization to seCure
optimum utilization of resources.
Forward-looking approach The process of controling starts immediately after the actual perfor.
mance. It compares actual results with the planned (or expected) results and determines the deviations
between the two. Control is exercised to make the future bright. Control is futuristic as it is to conform to
plans.
Action-oriented process Control is an action-oriented process in the sense that it starts after the actual
performance of activities. Control has no meaning if corrective action is not taken on the basis of adverse
deviation. Control ensures that each action on the part of the employees is checked in conformity with pre
determined standards.
Corrective measures The essence of control is corrective action on the basis of feedback information.
Once deviations are brought on the surface, suitable corrective actions are necessary to check the re-occur
rence of such deviations in future. Agood system of control facilitates timely action so that there is minimum
waste of time and energy.
ighly correlated with planning functions Controlling is based on planning, Planning and controlling
go side by side. Planning lays down the attainable standards against which the actual performance is comt
pared for controlling functions. Controlling presupposes the existence of planning No control is possible
without planning, Controlling functions aim at achieving the planned target.
Normative force Control sets the norms (or standards) for performance.The result of an operation cannot
be positive in the absence of proper control. Control sets the standard and makes the employees reach lor
cross) the standard for their personal distinction and prosperity of the organization. Control channelizes the
efforts and energies of human factors towards expected standards.
Line function It is the duty of every manager working in a line of authority to control the activities or
subordinates, Theprocess of controlling helps the line manager in discharging his responsiblity.
8.3 STEPS IN (OR ELEMENTS OF) CONTROLLING PROCESS
Managerial control isa systematic process involving the following steps (sce Fig 8.1;:
 Controlling 131
Establishiment of
standard of
pertormance actMeasurement of
ual pertomance Comparson of
dctual pertomance
with the standarde

Taking correcive
acion Analysing the
causes ol deviation
Fig. 8.1
Elements of controling process
ksablishmentof standard of performance Standard
I during aspecified period. represents the
and competence of the Standard performance are generally planned performance to be
ahieved of
apabiliny

to be compared. T}
employee concerned. Standard is the determined keepingin view the
The control
manceis
measuringthe performance. Standards
process starts with the vardstick with which actual
pertor-
Szandards must be neither too high nor too low for
establishment
should be fixed in the light of
of
standards and methods tor
any obiectives set by the top
quantitative terms (such as
time, cost, money, performance managrment.are
achievement. Normally, standards
Measurement actual performance The output, man-hours, etc.).
of
petformance. The actual
pertormance. performance besecond step in the control process is to
should measured and
There are several techniques for the expressed in the same unit measure actual
the
as the planned
ion, sample checking, management by measurenment of
performance
exception, etc.). Asound management (such as personal observa-
Tloned for timely and accurate information system should be
ormance may be done at periodical measurement of performance. The measurement
ould preferably be measured in intervals (weekly, monthly, quarterly, yearly, and
etc.).
reporting of actual
quantitative terms as far as possible. The performance
Comparison of actual performance with the
DCompare the actual standards The third step in the
fnd out the extent of performance with the predetermined standards. The purpose ofcontrolling process
deviation and to identify the causes of comparison is to
te standard, the manager feels deviation. If actual performance
When actual performancematches
that everything is within his control. with
Ssandard performance, the manager should exceeds the
omance falls below the standard appreciate the employees for their achievement. If
Sch asituation does not recur. performance, the manager should take immediate remedial action so that
actual per
Ccation with minimum losses. Comparison of performances helps in quick location of defects and
All
ond the reasonable limit should be deviations need not be reported to the management. Only
resultsin
brought tothe notice of the top deviations
Aaalysing the
Minto the possiblecauses
Wns (such as
of deviation The manager identifies and management.
causes responsible for such asituation. There mayinvestigates various deviations so as to
be various reasons for actverse devia-
aniyproprvzaiiateonal defectconstivreaints,
processes, inadequacy of resources, structural drawbacks, lack of proper moniturng,
external constraints, etc.). Therefore, it s necesary to identify and isolate the
causes of adverse deviations.
Jaking corrective
of action Any corrective action is initiated on the basis oe caretul analysis oe ossible
Mle of the deviation.
All controlling activities terminate at this point. Corrective actçons are employed taking
nature
mscuohpnoetrrdov,limsinognd,ifying
and type of deficiencies occurred. Acorrective action may involve: a change in pruducion
the existing process, change in the method ol selection ol workers, change in he nature
, use of
quality materials, improvng the plysicalconditions ol' work, ce. Therelore, he essence
lies in taking suitable corrective action so as to improve pertornance.
 132
Boosting nor
standard.should
actionfuture
Essence on standards
tion. Bringing
for Disorders, do. to the atesan accidents, employees.Facilitating
defectiveamong
Efficient activities. Bringing
of achievement
tions. ofthe goalsaction.
in achieving
spirit Accomplishing
organizational of This
enablestaken. goals.plansresponsibility
measures achieving
facilitating Efective
manner. to A LThe
Control strnucture.
tional
Managerial 8.4
Efective
the helps Thisthe work are control organization process bottom,
SIGNIFICANCE
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employees. morale cost of system accountability of
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of
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to and setting
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133
 134
involves r It and Budgetary
focompare Budgetary
Control Some
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7.1 Controlling ProperTECHNIQUES feedback.
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erformance
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he management
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o 135
 charts. organization
agement specialparticular
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