Controlling – A Function of Management

Controlling is a primary goal-oriented function of management in an organization. It is a process of

Management needs to monitor and evaluate the activities at all levels. It helps in taking corrective
actions by the manager, in the given timeline, in order to avoid contingencies and losses. Controlling is
performed at the, upper, middle and lower levels of the management.

1. What is Controlling

According to Brech, Controlling is a systematic exercise which is called as a process of checking actual
performance against the standards or plans with a view to ensure adequate progress and also recording
such experience as is gained as a contribution to possible future needs.

Characteristics of Controlling

1,Controlling is an end function – It is a function, which comes once the performances are made in
conformity with plans.

2,Controlling is a pervasive function – It is a pervasive function because it is performed by managers at

3,Controlling is backward as well as forward looking – Effective control is not possible without past being
controlled. Controlling always look to future so that follow-up can be made, whenever required.

4,Controlling is a dynamic process – Controlling requires taking revival methods, changes have to be
made wherever possible. Focus has to be on controlling all the time, which makes it a dynamic function.

5,Controlling is related with Planning – 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.

Advantages of Controlling

It helps plans to be implemented effectively.

Controlling facilitates coordination in organizational functioning, by reducing diversity.

It encourages high morale on the part of employees.

It ensures order, discipline and obedience on the part of subordinates.

Controlling helps the organization to preserve and promote its distinct identity against environmental
changes.
It makes effective use of physical and human resources, for achieving organizational goals.

It enables organization to keep watch on external environmental for better control over it.

Control promotes integration between Short Term Goals and Long-term Objectives Corporate Goals and
Departmental Goals.

It saves time and energy and helps in timely corrective action by the manager.

Control allows managers to concentrate on important tasks.

It also allows better utilization of the managerial resource.

Limitations

There is difficulty in setting qualitative standards.

There is no Control over External Factors.

There is resistance to change from Employees.

It is a costly affair, especially for small companies.

6. Steps in Controlling Function

Steps in Controlling Function include establishing standards, measuring performance, comparing actual
performance with standard performance and finally taking remedial measures.

Steps in Controlling Function

Figure : Steps in Controlling Function

1. Establishment of Standards – Standards are the targets required to be achieved. Controlling becomes
easy through establishment of these standards because controlling is exercised on the basis of these
standards. They are the criterions for judging the performance. Standards generally are classified as

❤Measurable or Tangible Standards- Those standards which can be measured and expressed are called
as measurable standards, such as cost, output, expenditure, time, profit, etc.

🙄Non-Measurable or Intangible Standards –These cannot be measured monetarily, such as performance

2. Measurement of Performance – Deviations are found out by comparing standard performance with
the actual performance. Performance levels are sometimes easy to measure and sometimes difficult.
Measurement of tangible standards is easy as it can be expressed in units, cost, money terms, etc.
Performance of a manager cannot be measured in quantities. It is also sometimes done through various
reports like weekly, monthly, quarterly, yearly reports. It can be measured only by their-
Attitude ,Morale to work,Response towards physical environment

Comparison of Actual with Standard Performance –By comparing the actual with standard, deviations
are identified. Manager has to find out whether the deviation is positive or negative or whether the
actual performance is in conformity with the planned performance. The managers have to exercise
control by exception.

4. Taking Remedial Actions – Once the causes and extent of deviations are known, the manager has to
detect those errors and take remedial measures for it. There are two alternatives as follows:Taking
corrective measures for deviations which have occurred In the end, if the actual performance is not in
conformity with plans, the targets are revised