Controlling
Ms. Gurpreet Kaur
Definition of Controlling
• Henry Fayol: Control consists in verifying
whether everything occurs in conformity with
the plan adopted, the instructions issued and
the principles established.
• Koontz and O’Donnell: Controlling implies
measurement of accomplishment
/performance against the standard & the
correction of deviations to assure attainment
of objectives according to plans.
CONTROLLING AS A MANAGEMENT
FUNCTION
A process of monitoring performance and taking action
to ensure desired results.
• It sees to it that the right things happen, in the right
ways, and at the right time.
• Done well, it ensures that the overall directions of
individuals and groups are consistent with short and
long range plans of the organisation
• It helps ensure that objectives and accomplishments
are consistent with one another throughout an
organization.
• It helps maintain compliance with essential
organizational rules and policies.
FEATURES/CHARACTERSTICS OF
CONTROLLING
• Continuous process
• Flexible and dynamic process.
• Future oriented.
• Planning and controlling closely related.
• Function of management.
• Strategic and results oriented
• Understandable
• Timely and exception oriented
• Essence of control is action
THE CONTROL PROCESS
• Establish objectives and • Comparing Results with
standards: Performance Objectives and Standards:
objectives are defined and the Establishes the need for action.
standards for measuring them Ways of making comparisons:
are set. There are two types of Historical / Relative and
standards- output standard Benchmarking
(measures performance results • Taking Corrective Action:
in terms of quantity, quality, Taking any action necessary to
cost, or time) and input correct or improve things.
standard (measures work
efforts that go into a
performance task)
• Measure actual performance:
To spot deviations or variances
between what really occurs
and what is most desired.
Three types of control based on time
of action
• Feed Forward Control-Control that attempts to
identify and prevent deviations before they occur
is called feed forward control, sometimes called
preliminary or preventive control.
• Concurrent Control-Control that monitors
ongoing employee activities during their progress,
to ensure they are consistent with quality
standards, is called concurrent control.
• Feedback Control-In this case, the control takes
place after the action. Sometimes called
post-action or output control
Control techniques
• Control techniques may be broadly classified
into two categories:-
Traditional control techniques.
Advance / Modern control techniques.
Traditional Control Techniques
• Personal observation is one of those techniques
which enables the manager to collect the
information as first-hand information.
• Break-even analysis shows the point at which a
business neither earns profits nor incurs losses. This
can be in the form of sale output, production
volume, the price of products, etc.
• Budgetary control is to regulate the activity of an
organization using budgeting. This process firstly
requires managers to determine what objectives
they wish to achieve from a particular activity. After
that, they have to lay down the exact course of
action that they will follow for weeks and months.
Advance control techniques:
• Management Audit: systematic appraisal of the
overall performance of the management of an
organization.
• Programme Evaluation and Review Techniques
(PERT) and Critical Path Method (CPM): These are
important network techniques useful in planning &
controlling and deal with such factors as time
scheduling & resources allocation for these activities.
• Management Information Systems (MIS): is an
information system used for decision-making, and
for the coordination, control, analysis, and
visualization of information in an organization.