C h a p2
ter
4
Controlling
definetheresults that are expected rom a person performing a job.
artomance standardstobe meaningful, all persons doing that jobshouldknow and
standards.
Arthur R. Fell, HR Consultant and Author
tducton:
important
an, telementin the management process. Control monitors
is
activities
organisational
Control are according to plans andif not the corective
shether taken. It
involves. setting standards, measuring performance,
performance with standards, finding out deviations andtaking
be
to
AtIon
of
AIparison
oneofthefundamental forces that keeps the organisation
action. Itis
CaTective
tgether: to ensure that deviations between standards and
objectiveoffcontrol is andlocorrective action is takenimmediately.
pertormanceareidentified
The
atual
Definitions:
"control of an undertaking consists of seeing
that everything
Henry Fayol,
in accordance with the plan which-has been adopted, the
carried out laiddown.
s being been given, and the principles which have beenrectified and
which have they may be
orders
point out mistakes in order, that
to
sobjject is occurringagain". performance
Meventedfrom "Controllingis themeasurementand correction of átain
Harold Koontz, objectives and the plans devised to
that enterprise
inorderto makesure
temareaccomplished."
"Controlling is determining what is being
Franklin, applying
As perTerry and evaluating performance and, if necessary,to plans."
BXComplished - that is according
the performance takes place guides
that
corrective measuresso Fundamentally, control is any process that in
Haynes andMassie, of the concept is
goal. The essence results."
predetermined
aCivitytowardsome activity is achieving the desired record
imining hetherthe only provides ahistoricalreasons
which not pinpointsthe
Emest Dale,,"Controlis assystem as a whole, but also executive or
of what hass happenedtothe business the chief
data that enables the wTOngtrack.
"
provides the
Why it has happened and steps if heis on
lie departmental head to take corrective
PROCESs OF CONTROL(Or) STEPS IN CONTROL:
The process of control involves the following five steps.They are:
(a) Setting standards of performance
(b) Measuring actual performance
(c) Comparing performance against standards and measuring deviations
(d) Analysing the causes of deviations
(e) Taking corrective actions.
24.5
PROCESS OF CONTROL
Setting Standards of Performance
MeasuYing Actual Performance
Comparing performance against standards
and measuring deviations
Analysing the Causes of Deviations
Taking Corrective Action
of performance : A standard is the levelofexpected
l@ Setting standards objective. They are performance targets
that
eformance to achieve a given activity
motivate performance. Standards can be set for any should
uide and resources etc). The organisation
(oroduction, marketing, finance, human present situation before setting standards.
performance and its
analyse past
challenging and should aim for improving overpast performance.
They shouldbe well as qualitative. Production,
Standards can be both quantitative asareas where quantitative standards
productivity, profitability, sales, costs are of employees, quality of service,
canbe set. Morale and motivation levels qualitative standards can be set.
employee satisfaction,are areas where
actual performance : The second step in the control
9) Measurement of
processis the measurement of actual performance.
they will measure and how they
Managers shouldhaye a clear idea of what or assoonsas
willmeasure. Performance should be measured as it is being done
0activity is completed.
24.6
The data on performance can be obtained through:
Principles ofManagem
0 Oral reports (salesman reporting daily sales data to his
) Written reports (cost data, debtors collection
reports, produdion
(i) Personal observation(a manager visiting the area of activity
standarfoxamlis). e
the shop floor to observe adherence to quality,
safety
Without measurement,control is not possible. As Peter Drucker
remarked, "Ifyou want it, measure it. If you can'tt
measure
(c) Comparison of actualperformance with standards : ,forget i"
idMeasentiufirceratneriotn of
comparison of actual performance with standards enables identife and
deviations.
Deviations as arule are not undesirable. Positive deviationss
signifythe
of operations (e.g., actual usage of raw materials being less than
usage,
usage, number of defective items being less than the standard effiency
than thefxedstandrd
ec)
In some activities relativelysmall deviations from the s
(for example price variations in low value, low estandard may be accepabie
some areas even a slight deviation may lead to seriousconsumed items), whereas in
high value, highly consumed iterms). Therefore problems (for exarmple
and point out areas requiring immediate corectíve managerS Must carefully analyse
action.
(d) Analysing cause of deviations : After
deviations, their cause should be analysed. Deviations identifying and measuring
by internal inefficiencies or external might have been caused
than the targeted sales,can be because of factors. For e.g., actual sales being less
lack of
poor product knowledgt of salesmen(internal initiative, inadequate training.
inefficiency) or due to economic
depression (external environmental factor). Athorough
initiating effective corective action. analysis is the basis for
(e) Taking corrective action : Management has to initiate
correct deviations. Any needless delay would lead to heavy losses. prompt action to
if thereis adeviation in product quality, it may not only lead to loss For example
sales,and profits but also spoil the reputation of the of customers,
economy.
Corrective action may include improvement in technology, qality,
restructuring the organisation, training employees, focus on cost efficiency etc.
For e.g., when Tata Indica was introduced in the market, there were some
technical
defects in the product relating togear box, suspension etc., Only because the
management undertook immediate corrective action by removing the defects
the product was accepted.
meetand overcomne competition in the industry.
ensure regular
24,9
communi
Sub-ordinates in order to c
achieveation between the superiors and
objectives.
e Merits and Advantages of Control:
of Control is
system
objectivesaandi sucoeed. essential in all
effective
etof sucoeed. following organisations
The benefits of
to ensure
control highlight
Achievementof objectives : Every
Objectives may include increasingorganisation has its own objectives.
sales, market share and profits,
improving quality, customer sattisfaction,
an organisation to achieve
reducing costs etc. Control
enables objectives.
mproves efficiency :CControl helps a manager to detect
and take suitable action to correct deviations. It points outdeviations
whether
the organisation is moving in the way as was originally planned.
Itinforms whether changes have to be made and in what areas they
haveto be made.
Basisfor Planning :Control points to deviations and weaknesses in
implementation of plans. It identifies areas requiring remedial action.
Such information is useful while preparing future plans to ensure that
problems do not recur.
a Aids co-ordination : Control provides unity of direction. It motivates
everyone to achieve the common objectives through co-ordination.
taids co-ordination among the different units of the organisation and
establishes harmony.
Influences employee behavior : Employee behavior is influenced in a
e employees are aware that their
positive manner by control. Since improving the quality
on
performance is subject to control, they focusuties
They promptly discharge their and responsibilities.
of their work.
Lossesand wastages are minimised. feedback
employee morale : Employees are provided regularpointed out
D Better perfomance. They can corectdeficiencies
regardingtheir security and comfort to employees
provides
at the initialstages. This degree ofmorale and motivation.
andcontributes tohigher superior to
delegates authoritythe
authority : A
B Monitoring delegated things done. Control system enables in
his sub-ordinates to get used
the authoritydelegated is being
Superiorto monitor whether
the right manner.
(m) 24.10
Deal
with(n) ) K)
trol
tructure
global
with asControl ) (@ ()
very organisation To have of
Detect
changes customers.
regulations Tostandards.
well avoid errors, taken. Ensures
contintously
performance.
is monitor action areas
supervision.
Facilitates
important. a Cope management Simplifies
is maximise as costs andnegative errors, and with
Thi s and of
complexity
very : mistakes Deficiencies quality
detect
example keep follow weakness
Control :
(recent mistakes adapt change results decentralisation to supervision The
tant In impact changing. :
erations output. th e such and to decentralise supervisor the
global : inControl right in
ganisations system errors onthem.he
andfrauds
frauds. Technology, customer are
the an :
to Control immediatelyhelps path. can
organisation. An
sure and helpsmarketorganisation.
andbeing Even operations. : efficient
frauds, : satisfaction an Control guide
ifferent Control customer
helps
ancost the small organisation
cy organisation of place, spotted instills the control
today control Satyam an The
product Frauds
mistakessystem organisation
preterences, workers to
Management
ItPrinciples
and superiors simplifies
are and confidence system
competitivenessComputers system
is better to
and complex can enables corrective
lines theirin to and maintain ta ke of
ony control destabilise wil points
is errors governmentfo retention in the
herefore essential. detection detect be in
tothep Corective
scam). quality
actinn able tale
costs to
of ancan the of
