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The system

and processof controlling

By shikha

chauhan

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The main object of control is to bring to

light the variations between the standardsset and performance and then to take

necessary steps to prevent the occurrenceof such variations in future.

It is the process through which managers

assure that actual activities conform to

planned activities.

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According to Harold Koontz,

Controlling is the measurement and correction

of performance in order to make sure thatenterprise objectives and the plans devised toattain them are accomplished.

According to , E.F.L. Berch,Control is checking current performance against

pre-determined standards contained in theplans, with a view to ensure adequate progressand satisfactory performance.

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1. Establishing standards

2.

Measuring and comparing actualresults against standards.

3. Taking corrective action

Steps in a control process

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Step 1: Establishing Standards

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Step 1: Establishing standards:

Some key areas in all business organization are:

profitability

Marketposition

productivityPersonneldevelopment

Employeeattitudes

Publicresponsibilitykey areas

The standards the managers desire to obtain in each key areashould be defined as far as possible in quantitative terms.

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Types of standards:

Physical stds

Cost stds

Revenue stds Capital stds

Intangible stds

Workingpractice stds

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Physical standards: labor hours per unit of

output, units of production per machine hour,and so on.

Cost standards : direct n indirect cost per unitproduced, material cost per unit.

Revenue standards : average sale per customer,

sales per capita in a given market area.

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Capital standards: rate of return on capital

invested.

Intangible standards: competence of managersand employees, success of public relation

programme.

Working practice: such as shadow tool boards on

which a shadow of each tool is painted to denote tothe worker a clear standard for every tool to be

hung in a certain place.A vacant place on theseboards immediately warns the worker about the

breach.

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Step 2:

Measuring and comparingactual results against standards

The second step in the control process is to measurethe performance and compare it with thepredetermined standards.

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Measurement and

comparison are to be

done at variousstages or at the

end??????

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Step 3: Taking corrective action

The corrective action should be taken

without wasting time so that the normalposition can be restored.

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What are the causes for

deviation????????????????

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Causes:

Inadequate and poor equipment and

machinery.

Inadequate communication system.

Lack of motivation

Defective system of training and selection ofpersonnel.

Defective system of remuneration, etc.

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Need for control

Control is needed for three purposes:

To measure progress

To uncover deviations

To indicate corrective action

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