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Steps in The Control Process & Issues in Control System

The document outlines the steps in the control process and issues that managers must deal with in designing a control system. The five steps in the control process are: 1) determining SMART standards, 2) measuring performance against standards, 3) comparing actual and standard performance, 4) analyzing deviations, and 5) taking remedial actions. Some issues that managers must deal with include the magnitude and rate of change, establishing accurate standards, avoiding information overload, and gaining employee acceptance of the control system.

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Ali Hasanie
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50 views14 pages

Steps in The Control Process & Issues in Control System

The document outlines the steps in the control process and issues that managers must deal with in designing a control system. The five steps in the control process are: 1) determining SMART standards, 2) measuring performance against standards, 3) comparing actual and standard performance, 4) analyzing deviations, and 5) taking remedial actions. Some issues that managers must deal with include the magnitude and rate of change, establishing accurate standards, avoiding information overload, and gaining employee acceptance of the control system.

Uploaded by

Ali Hasanie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Steps In the Control Process

• Controlling is the measurement and correction of


performance in order to make sure that objectives and the
plans formulated to attain them are being accomplished, as
we all know, the controlling function will be unnecessary to
the management if other functions of management are
performed properly and if there is any imperfection in the
planning and actual performance, control will be needed.
Controlling assures that the right things are done in the
right manner at the right time. Control may be seen as a
process by which the management assures that the actual
activities conform to the planned activities. By controlling,
the manager of an organization or agency checks the
progress and compares it to the planned system. If the
planned and actual processes are not running on the same
lines, then the required corrective action can be taken.
The first step in the control process is the determination of
Smart Standards, a standard means a benchmark. It means a
specific set of factors relating to any organization, indi­viduals,
or groups of individuals working in departments or divisions of
an organization. A standard should be SMART, meaning Specific,
Measurable, Achievable, Realistic and Time-based. Another is
that Standards indicate the criteria against which actual
performance is measured. They reflect the desired results or
acceptable level of performance. There are two types of
standards, Quantitative standards a set of physical or monetary
terms. Such standards are set up in production, sales, finance
and other areas where results can be measured in quantitative
terms. Second type is the qualitative standard which refers to
the goodwill, employee morale, motivation, industrial relations,
etc. In these areas standards are laid down in intangible terms.
• A second step of control process is the measuring
of the performance in respect of a work in terms
of control standards. Measurement becomes
easy when the concern has clearly laid down its
objectives and established standards. If
measurement detects deviations at the earliest,
then it will enable appropriate action in time. If
that is not possible, then deviations should be
detected as early as possible.
• The third step in the process of control the
comparison of actual performance with
standard performance. This comparison will
reveal the deviation between actual and
desired results. Comparison is very easy when
standards are expressed in quantitative terms.
If results are intangible or qualitative, personal
observation will be used to find out the extent
of deviation.
• The fourth step is analysis of deviations; all
deviations need not be brought to the notice
of top management. When the deviation is
beyond the prescribed limit, an analysis of
deviations is made to identify the causes of
deviations. The causes of deviation are
reported to the managers. The managers take
necessary corrective actions.
• The last step is taking remedial actions;
Variations are reported to the management
for action. The manager takes necessary
corrective actions so that deviations may not
occur again, corrective actions may be:
Revision of standards, Change in the
assignment of task, Training of employees and
Improvement in the technique of direction.
ISSUES THAT MANAGER HAVE TO
DEAL IN DESIGNING A CONTROL
SYSTEM
• One of the issue is the Magnitude of change, management
control system is designed to cope with changes of a limited
magnitude. While designing the control system certain as
assumptions are made concerning the variables expected to
change and the degree of change. For example, overtime may
be decided on the assumption that five per cent of the
employees will on an average be absent. When the magnitude
of change is too high, the corrective action cannot work, if 90
per cent of the employees remain absent, on a particular day
due to a strike, management can do little to correct the
change. Thus, the control system fails when the variables go
outside the range, which the system was design to handle.
• Second issue is the Time Rate of change, control
system in any organization depends upon accurate
and timely feedback’s on actual performance. Such
feedback largely comes through written report. It
takes time to write and transmit the control
reports. When an activity is changing very fast, the
feedback becomes outdated by the time reports
reach the higher authorities. Such time log in
feedback slowdowns the adaptive process. The
control system takes greater time to respond.
• Third issue is the Faulty Standard, when the
control standards are erroneous, It becomes
difficult to discriminate between proper and
improper performance be decision-maker is
not certain whether the deviation in
performance is due to the activity being out of
control or due to the improperly set standard.
• Fourth issue identified is the Information
Overload, too much information is harmful for
control, as incomplete information. When
managers, at all levels receive identical
information they may be overburdened and may
suggest remedies before giving subordinates an
opportunity to take action. Therefore,
management must decide the quantity and type
of information that should reach to every
manager.
• Next issue is the Resistance, employees often
consider any control system as a tool to exert
pressure on them. They complain that the targets,
are non-feasible, time span of appraisal is too short
to permit fair assessment and control staff lacks
objectivity. Employees may also resent the control
department to sit in judgment. They may question
the location of the decision level regarding
corrective action. Therefore, a control system must
first be sold to employees before it is installed.
THANK YOU!

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