SUMMARY

MEANING
(ontrolling
means comparing an
g
iking
corrective
action if the two organi
do notzatmatch.
ion's actual performance to its planned performance and

NATURE OF CONTROLLING
: goal-oriented function.
Controlling issa
Controlling is an
all-pervasive function.
3.Controlling is both a
, Controlling isa backward-looking as well forward-looking function.
continuous function.

MPORTANCE OF CONTROLLING
the controlling runction of management is regarded as key to
1. Helps in achieving organizational goals.
organizationalsuccess because,
2. Judging accuracy of standards.
Making efficient use of resources.
4, Improving employee's motivation.
5. Ensures order and discipline.
Facilitates coordination in action.

RELATIONSHIP BETWEEN PLANNING AND CONTROLLING

1. Nature and concept.
2. Planning and controlling are interdependent and interlinked.
3. Planning and controlling both are backward and forward-looking.
4. Planning is prescriptivewhereas controlling is evaluative.

CONTROLLING PROCESS
The main steps in controlling the process are:
l. Setting up of (target) standards
L. Measuring of performance
Lomparing performance against standard
4. Analysing deviations
J. Taking corrective measures
6. Feedback in controlling

Controlling (213)
 |MIND MAP
Limitations of Controlling
Meaning
() Difficultyin setting quantitative standards
external factorg
Controlling is a process that entails comparing (n Litle control on
from employces
actual performance to the desired outcome, to (iti) Resistance
assure the achievement of objectives. (iv) Costlyaffair

Relationship between Planning and

Importance of Controlling Controling

are inseparable
() Accomplishing organisational goals o Planning and controlling
twins ofmanagement.
(in Judging accuracy of standards
Interdependent
(ii) Making efficient use of resources (i) Planning and controlling are
and interlinked.
(iv) Improving employee motivation (ii) Planning and controlling are Backward:and
() Ensuring order and discipline Forward looking.
(vi) Facilitating coordination in action (i) Planning is prescriptive whereas controlling
isevaluative.
Controlling

Controlling Process
4. Analysing Deviations
1. Setting Performance Standards
focused
CriticalPoint Control: Control should be
It means the target or the yardstick against which the on key result areas (KRAS)that
are crucial to an
actual performance is measured.
organization's success.
Management by Exception: The manager should
2. Measurement of Actual Performance deviations
give attention to significant
This step involves collecting data and information to
assess the actual performance of the organization. 5. Taking Corrective Action

3. Comparison of Actual Performance Once deviations are identified, controlling requires

with Standards
taking corrective actions to bring the performance
back on track and achieve desired results.
It needs to be compared with the predetermined
standards to identify gaps and areas for improvement.

(214) Business Studies VoluMe I