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Controlling

Controlling is a managerial function that ensures organizational activities align with planned goals, involving setting standards, measuring performance, and taking corrective actions. It is a continuous, flexible, and future-oriented process aimed at achieving efficiency and effectiveness in resource use. However, controlling faces limitations such as difficulty in setting standards, external factors, and employee resistance, which can be addressed through effective management techniques.

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Paul Shåbâh Jr.
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9 views21 pages

Controlling

Controlling is a managerial function that ensures organizational activities align with planned goals, involving setting standards, measuring performance, and taking corrective actions. It is a continuous, flexible, and future-oriented process aimed at achieving efficiency and effectiveness in resource use. However, controlling faces limitations such as difficulty in setting standards, external factors, and employee resistance, which can be addressed through effective management techniques.

Uploaded by

Paul Shåbâh Jr.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONTROLLING

UNIVERSITY OF BLANTYRE SYNOOD


2025
CONTROLLING - MEANING

• Controlling is a managerial function that ensures that activities


in an organization are performed according to laid plans.
• Controlling ensures efficient and effective use of organizational
resources for achieving the goals.
• Management control refers to setting of standards, comparing
actual performance with these standards and if necessary,
taking corrective actions to ensure achievement of
organizational goas.
CONTROLLING: MEANING

• Managerial control implies the measurement of


accomplishment against the standard and the
correction of deviations to assure attainment of
objectives according to plans. - Koontz and O’Donnell.
• Control is the process of bringing out conformity of
performance with planned action. -Dale Henning
FEATURES OF CONTROLLING

• Continuous process
• Flexible and dynamic process
• Future oriented
• Strategy and result oriented
• Understandable
• Timely and exception oriented

• Essence of control is action


THE PURPOSE OF CONTROL
IMPORTANCE OF CONTROLLING

• Accomplishing organizational goals.


• Judging accuracy of standards.
• Making efficient use of resources.
• Improving employee motivation.
• Ensuring order and discipline
• Facilitating coordination in action.
LIMITATIONS OF CONTROLLING

• Difficulty in setting quantitative standards


• No control on external factors
• Resistance from employees
• Is a costly affair
STEPS IN THE CONTROL PROCESS
ESTABLISH OBJECTIVES AND STANDARDS

• Performance objectives are defined and the


standards for measuring them are set.
• There are two types of standards-output
standard and input standard.
MEASURE ACTUAL PERFORMANCE

Involves getting information about actual performance


To spot deviations or variances between what really occurs and what is
most desired.
Common sources of information include:
personal observation e.g. MBWA
statistical reports
oral and written reports
What managers measure is more critical than how they measure…why?
COMPARING PERFORMANCE/RESULTS WITH OBJECTIVES AND
STANDARDS

• Establishes the need for action.


• Ways of making comparisons: Historical / Relative
and Benchmarking
• Determining Need for Taking Corrective Action
• Entails taking any action necessary to correct or
improve things.
DETERMINING NEED FOR CORRECTIVE
ACTION

• Maintain status quo


• Correct deviation
• Change standards
WHEN DOES CONTROL TAKE PLACE
LEVELS OF CONTROL

• Operational control: – Focuses on the processes used to


transform resources into products or services.
• Financial control: – Concerned with financial resources.
• Structural control: – How the elements of structure are
serving the intended purposes.
• Strategic control: – How effective are the functional
strategies helping the organization meet its goals.
CONTROL TECHNIQUES

• Control techniques may be broadly


classified into two categories:-
• Traditional control techniques.
• Advance / Modern control techniques.
TRADITIONAL CONTROL TECHNIQUES

• Personal observation.
• Statistical reports and analysis.
• Break-even analysis.
• Budgetary control
ADVANCE CONTROL TECHNIQUES

• Self Control
• Management Audit.
• Programme Evaluation and Review Techniques
(PERT).
• Critical Path Method (CPM).
• Management Information Systems (MIS).
CHARACTERISTICS OF EFFECTIVE CONTROL

• Integration with planning


• Control should be linked to goals as are espoused in the plans

• Flexibility
• Need for change is inevitable when circumstances change
• Adjusting the standards of control should therefore, be inevitable

• Accuracy
• Has to do with information on which the control standards are based
which may be accurate or inaccurate.
CHARACTERISTICS OF EFFECTIVE CONTROL

• Timeliness
• Pertains to establishing a control system that promptly
provides required information
• Objectivity
• A control system should not be based on an individual
manager’s understanding, but rather on the needs of
the organisation in line with its goals.
RESISTANCE TO CONTROL

• There is natural resistance to controls because controls take away a certain amount
of individual freedom
• Over-Control – When organizations try to control too many things, employees perceive
these as unreasonable and unacceptable and then trouble begins to surface.
• Inappropriate Controls – Often Controls are not related to the objectives of the
organization. If the wrong thing is being controlled, this will not contribute to doing the
right thing efficiently.
• Unachievable standards- Unattainable standards produce negative reactions from
employees and thus this may lead to the employees quitting the company in frustration.
• Unpredictable standards – When the control system is unpredictable and constantly
changed, frustration and resentment of the control process can result
DEALING WITH RESISTANCE TO CONTROL

How can resistance to


control be overcome?

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