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Efforts by-

YOGESH AGGARWAL

JASMEET SINGHHIMANI MANGAL

SHWETA KAPOORMANIK NARANG

DIKSHA GOYALRAHUL JOSHI

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CONTENTS

Concept of controlling.

Features of controlling.

Controlling and other functions.

Importance of controlling.

Steps in controlling.

Establishment of control standards.

Measurement of performance.

Comparison between performance and standards and

the communication.

Correction of deviation from the standards.

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One of the managerial functions like planning,

organizing, staffing and directing.

Process of gathering and feeding back information

about performance so that decision makers can compare

actual results with planned results and decide what to doabout any apparent discrepancies or problems.

Helps to check errors and take corrective measures so

that the deviation from standards are minimized and goalsof the organization are achieved in a desired manner.

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In other words, controlling is the process of measuring

the progress of work against set standards, assessingits achievements and deficiencies and taking remedialactions to assure attainment of objectives.

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CONCEPT OF CONTROLLING

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FEATURES OF CONTROLLING

Controlling is forward looking :

One can control future happenings and not the past.Managers suggest corrective actions for the future period.

Controlling is both an executive process and a result : Each manager has to perform control function in the

organization.

Nature, scope and limit of the control function may be

different for different managers. The word control is preceded by an adjective to

designate control problem : quality control, inventorycontrol, production control, administrative control etc.

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Controlling is a continuous process :

Managerial control follows a definite pattern and timetable, month after month and year after year on acontinuous basis.

Fundamental management function because if

controlling is excluded then all the other managementfunctions are rendered meaningless.

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IMPORTANCE OF CONTROLLING

Helps in achieving goals-

Improves employee motivation-Effective controllingsystem communicates goals and standards of appraisal toemployees.It also guides employees to come out of theirproblem.

Ensures order and discipline as all the undesirableactivities and delays are checked.

Helps in judging the accuracy of standards as anaccurate controlling system revises standards from time to

time to match with environmental changes.

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Organizational efficiency and effectiveness :

Proper control ensures organizational efficiency and

effectiveness. Control system brings the organization closer to its

objectives.

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L M T T ONS Psychological pressure :

Psychological pressure on individuals to perform better.

Rewards and punishment based on the performances.

Manager is responsible for the ultimate performance ofhis subordinates.

Coordination in action :

Coordination is achieved through proper performance. Manager coordinates the activities of his subordinates to

achieve the organizational goals.

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1. ESTABLISHMENT OF CONTROL

STANDARDS

Plans - goals, objectives, targets to be achieved. Actualresults are measured against them.

Precision:

Great precision Standards are set in quantities.

E.g. Physical Volume of products, man hour.Monetary Costs, revenues, investment.

Less precisionStandards are in qualitative terms.

E.g. Human relations.

It is also important to decide the level of achievementwhich will be regarded as good or satisfactory.

Desired level of performance -reasonable , feasible,some amount of flexibility, stated in terms of range

(maximum and minimum).

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2. MEASUREMENT OF PERFORMANCE

Involves measuring the performancein the work interms of control standards.

Methods of measuring performance :

Quantitative Physical and monetary terms, easily andprecisely measurable.

E.g. Production units, sales, volume, profits etc.

QualitativeIntangible, cannot be measured precisely.

E.g. Human relations etc.

Techniques Psychological tests, opinion surveys.

Measurement must be (i) clear, simple and rational, (ii)relevant, (iii) direct attention and efforts, (iv) reliable, selfannouncing, and understandable without complicatedinterpretation or philosophical discussions.

3 COMPARING ACTUAL AND

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3. COMPARING ACTUAL AND

STANDARD PERFORMANCE

Steps : Finding out the extent of deviations.

Identifying the causes of such deviations.

Accurate standardsand accurate measurement of actual

performance are very important for clear revelation ofvariations.

Required standards achieved :

No further managerial action is necessary.

Control process is complete. Required standards not achieved :

Extent of variation may differ from case to case, dependsupon the type of activity.

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Strict compliance with standards or permissible limit ofvariation.

E.g. Engineering products a very minute variation maybe significant.

When the deviation between standard and actualperformance is beyond the prescribed limit, an analysis ismade of the causes of such deviation.

Controllable factorsPerson concerned will takenecessary corrective action.

Uncontrollable factorsPerson concerned cannot beheld responsible.

Communication of datato the person who can takecorrective action.

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4. CORRECTION OF DEVIATIONS Organization is not a self regulating system.

Actions should be taken to maintain the desired degreeof controlin the system or operation.

Control actions :

Review of plans and goalsand change therein on thebasis of such review.

Change in the assignment of tasks.

Change in existing techniques of direction.

Change in the organization structure.

Provision for new facilities.

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DESIRED

PERFORMANCE

IMPLEMENTATION OF

CORRECTIONS

ACTUALPERFORMAN

CE

CORRECTIVEPLAN

ACTION

ANALYSIS OFCAUSES OFDEVIATION

MEASUREMENT OF

PERFORMENCE

COMPARISON OF ACTUAL

ANDSTANDARD

IDENTIFICATION OF

DEVIATION

MANAGEMENT CONTROL

PROCESS

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