Controlling

• Meaning, features, purposes and process of

controlling;
• Types of control; importance of control; essentials
of effective controlling the hospitality industry
• control tools and techniques
• Quality: concept and importance; dimensions of
quality; factors affecting quality
• total quality management: concept, components,
principles;
• emerging issues in quality management.
 1. Meaning, purpose, Process and types of
• controls
Control is a primary goal-oriented function of management in an
organization.
• It is a process of comparing the actual performance with the set
standards of the company to ensure that activities are performed
according to the plans and if not then taking corrective action.
• Control means identification of variations
• Control function has close relationship with the planning function
• Controlling is performed at the lower, middle and upper levels of
the management.
• Every manager needs to monitor and evaluate the activities of his
subordinates.
• It helps in taking corrective actions by the manager in the given
timeline to avoid contingency or company’s loss.
 Features of Controlling
• Management Function • Forward Looking
• Pervasive Function • Measurement and
• Continuous Process Comparison
• Dynamic Process • Corrective Action
 Purpose of control system
• To ensure that work is done as per the objective set and activities
planned with in time allocated and resources provided.
• To make manager know the gap in knowledge and skills of
employees and arrange proper trainings.
• To enable managers to recognize and reward good work.
• To ensure adequate resources are provided in for the work to the
employees.
• To enable the management to identify the causes of any
deficiencies.
 Purpose of Controlling
Primary Objective Subordinate Objective
• Location of Deviation
• Study the causes of deviation
• Taking necessary measures
• Prevent causes of deviation
• Reduce costs and maximize
profit
• Maintain discipline
• Support to maintain
coordination
 The Control Process
1. Performance standard
2. Performance measurement
3. Comparison between standards and actual performance
4. Analyse the causes of deviation
5. Corrective action
The Control Process
 1. Performance standard

• The first step is fixing performance standards( a reference

point against which performance can be measured)
• This means setting up of the target which needs to be achieved
to meet organisational goals eventually.
• Standards indicate the criteria of performance.
• Control standards are categorized as quantitative and
qualitative standards.
• Quantitative standards are expressed in terms of money.
• Clearly stated standards are easier to measure and evaluate.
• Via job descriptions and job instructions, performance
standards are communicated to the employees
 1. Performance standard

Examples of Quantitative Examples of Qualitative

Standards: Standards:
(a) Revenue to be earned. (a) Improving motivation
(b) Units to be produced level of employees.
and sold. (b) Improving labour
(c) Cost to be incurred. relations.
(d) Time to be spent in (c) Improving quality of
performing a task. products.
(e) Amount of inventories (d) Improving goodwill etc.
to be maintained etc.
 2. Performance measurement
• Once the standards have been determined, the next step is to
measure the actual performance.
• The actual performance of the employee is measured against the
target.
• This is the phase of evaluation, measurement and assessment.
• With the increasing levels of management, the measurement of
performance becomes difficult.
• The various techniques for measuring are sample checking,
performance reports, personal observation etc.
• It could be measured weekly, monthly, quarterly and annually.
• For effective measurement, effective management information
system should be designed and strengthened.
• This help to determine strength and weakness of the employees.
 3. Comparison of actual performance with the
standard:
• This step involves comparing the actual performance with
standards laid down in order to find the deviations.
• This help to determine how well the goals and objective have
been met.
• If performance matches the standard, achievement is
considered as good.
• If there is a big gap in the performance, it is considered as poor.
• For example, performance of a salesman in terms of unit sold in
a week can be easily measured against the standard output for
the week.
 4. Analyze the causes of deviation
• Performance can be suffered because of external environment,
internal environment, defects in planning, organizational
defects and others.
• External factors: Change in price, government rules, strategy of
competitors, intense competition
• Internal factors: shortage of raw materials, inappropriate
production facilities, outdated technology, lack of coordination.
• Organizational factors: lack of job description, lack of span of
control, imbalance between authority and responsibility
 5. Corrective Actions
• The last step in the process of controlling involves taking
corrective action.
• This step is required only when there is a gap between
performance standards and actual performance.
• If the deviations are within acceptable limits, no corrective
measure is required.
• However, if the deviations exceed acceptable limits, they should
be immediately brought to the notice of the management for
taking corrective measures, especially in the important areas.
• The corrective action may lead to changes in original standards,
work procedures, schedules etc.
• Types of control; importance of control;
essentials of effective controlling the
hospitality industry
Types of Control
Pre-control System or Free-forward controls

• Free-forward controls are future-directed — they attempt to

detect and anticipate problems or deviations from the standards
in advance of their occurrence (at various points throughout the
processes).
• They are in-process controls and are much more active, aggressive
in nature, allowing corrective action to be taken in advance of the
problem.
• Feed forward controls thus anticipate problems and permit action
to be taken before a problem actually arises.
• Uniform procurement system is also other form of pre-control
system.
• All departments of the organization have to follow this system.
• This ensures the fixed quality and quantity of inputs.
 Concurrent Control System
• This is also called gatekeeper control or real-time control.
• Concurrent control, also called steering control because it allows
people to act on a process or activity while it is proceeding, not
after it is proceeding, nor after it is completed.
• Corrections and adjustments can be made as and when the need
a rises.
• Such controls focus on establishing conditions that will make it
difficult or impossible for deviations from norms to occur.
• The continuous checking or control helps organizations to prevent
supplying defective or badly made goods to consumers.
• If some defects are found it is solved by for repair or reprocessing.
• Any activity in manufacturing is processed, watched, checked,
verified and controlled.
 Post-control System
• Feedback control is future-oriented.
• It is historical in nature and is also known as post-action control.
• The implication is that the measured activity has already
occurred, and it is impossible to go back and correct performance
to bring it up to standard.
• Rather, corrections must occur after the act.
• Such post-action controls focus on the end results of the process.
• Such control provides information for a manager to examine and
apply to future activities which are similar to the present one.
• This also helps manager in repeating past mistakes.
• The basic objective is to help prevent mistakes in the future.
• For example, financial analysis is done at the end of the year.
 Importance of control;
1. Execution of plan
2. Improve efficiency
3. Basis of future action
4. Aid to decentralization
5. Morale checks on employees
6. Means of coordination
7. Effective supervision
8. Maximize productivity
 Essentials of effective controlling the
hospitality industry
6. Accurate: the information provided by control
system should be reliable and accurate.
7. Acceptable: Control system should have the
general acceptance of employees to be
effective otherwise, it may not be successful if
it is imposed.
 Essentials of effective controlling the
hospitality industry
1. Simple: effective control system should be very simple and easy to
understand by the concerned manager and subordinates.
2. Timely– control system in the management of the organization
should be used to evaluate the deviations timely and take
corrective measures in time.
3. Objectives– the control system should be clearly understood by the
managers working under it.
4. Flexibility– every organization operates business in a dynamic
environment. Controlling system should be flexible so that it could
be adjusted in every environment.
5. Focus on strategic plans– controlling system should focus on critical
areas where deviations from standards are most likely to occur, and
they cause loss and damage.
• control tools and techniques
• Quality: concept and importance; dimensions
of quality; factors affecting quality
• total quality management: concept,
components, principles;
• emerging issues in quality management.
• emerging issues in quality management.