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Controling

Control is a key management function that involves comparing actual performance with set standards to ensure organizational goals are met. The control process includes establishing standards, measuring performance, comparing it with standards, and taking corrective actions. Planning and controlling are interrelated functions that reinforce each other, ensuring effective management in a dynamic environment.

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8 views3 pages

Controling

Control is a key management function that involves comparing actual performance with set standards to ensure organizational goals are met. The control process includes establishing standards, measuring performance, comparing it with standards, and taking corrective actions. Planning and controlling are interrelated functions that reinforce each other, ensuring effective management in a dynamic environment.

Uploaded by

beniyam keder
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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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Control is a primary goal-oriented function of management in an organisation.

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.

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.

Controlling is performed at the lower, middle and upper levels of the management.

Features of Controlling

An effective control system has the following features:

It helps in achieving organizational goals.

Facilitates optimum utilization of resources.

It evaluates the accuracy of the standard.

It also sets discipline and order.

Motivates the employees and boosts employee morale.

Ensures future planning by revising standards.

Improves overall performance of an organization.

It also minimises errors.

Controlling and planning are interrelated for controlling gives an important input into the next planning
cycle. Controlling is a backwards-looking function which brings the management cycle back to the
planning function. Planning is a forward-looking process as it deals with the forecasts about the future
conditions.

Process of Controlling

Control process involves the following steps as shown in the figure:


steps of control

Establishing standards: 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. Qualitative standards, on the other hand, includes intangible items.

Measurement of actual performance: The actual performance of the employee is measured against the
target. With the increasing levels of management, the measurement of performance becomes difficult.

Comparison of actual performance with the standard: This compares the degree of difference between
the actual performance and the standard.

Taking corrective actions: It is initiated by the manager who corrects any defects in actual performance.

Controlling process thus regulates companies’ activities so that actual performance conforms to the
standard plan. An effective control system enables managers to avoid circumstances which cause the
company’s loss.

Types of control

There are three types of control

Feedback Control: This process involves collecting information about a finished task, assessing that
information and improvising the same type of tasks in the future.

Concurrent control: It is also called real-time control. It checks any problem and examines it to take
action before any loss is incurred. Example: control chart.

Predictive/ feedforward control: This type of control helps to foresee problem ahead of occurrence.
Therefore action can be taken before such a circumstance arises.

In an ever-changing and complex environment, controlling forms an integral part of the organization.

The relationship between planning and Controlling.

Planning and controlling are two separate fuctions of management, yet they are closely related. The
scope of activities if both are overlapping to each other. Without the basis of planning, controlling
activities becomes baseless and without controlling, planning becomes a meaningless exercise. In
absense of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each
other. According to Billy Goetz, " Relationship between the two can be summarized in the following
points

Planning preceeds controlling and controlling succeeds planning.

Planning and controlling are inseperable functions of management.

Activities are put on rails by planning and they are kept at right place through controlling.

The process of planning and controlling works on Systems Approach which is as follows :

Planning → Results → Corrective Action

Planning and controlling are integral parts of an organization as both are important for smooth running
of an enterprise.

Planning and controlling reinforce each other. Each drives the other function of management.

In the present dynamic environment which affects the organization, the strong relationship between the
two is very critical and important. In the present day environment, it is quite likely that planning fails
due to some unforeseen events. There controlling comes to the rescue. Once controlling is done
effectively, it give us stimulus to make better plans. Therfore, planning and controlling are inseperate
functions of a business enterprise.

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