Scribd
Upload
117 views

Unit 7 Controlling

Controlling is a management process that involves setting performance standards, measuring and comparing actual performance against those standards, and taking corrective action. It is an ongoing, forward-looking process aimed at ensuring objectives are met. The key steps in the controlling process are establishing objectives and standards, measuring actual performance, comparing results to standards, identifying deviations, determining the causes of deviations, and taking corrective actions. Planning and controlling are closely related but separate management functions - planning sets the direction and controlling ensures plans are executed as intended. Together they form a feedback loop that allows for continuous improvement.

Uploaded by

Preeti Bhaskar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
117 views

Unit 7 Controlling

Controlling is a management process that involves setting performance standards, measuring and comparing actual performance against those standards, and taking corrective action. It is an ongoing, forward-looking process aimed at ensuring objectives are met. The key steps in the controlling process are establishing objectives and standards, measuring actual performance, comparing results to standards, identifying deviations, determining the causes of deviations, and taking corrective actions. Planning and controlling are closely related but separate management functions - planning sets the direction and controlling ensures plans are executed as intended. Together they form a feedback loop that allows for continuous improvement.

Uploaded by

Preeti Bhaskar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Prof.

Preeti Bhaskar Symbiosis Centre for Management Studies, Noida

Controlling
Meaning

Importance Steps in the process of control


Relationship between Planning and controlling
2

Controlling
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.

Continuous process

Action Oriented

End Function

Dynamic process

Characteristics of controlling
Forward looking

Management Function

Exercised at all levels

Control Process
Setting Standards

Goals and
Objectives
Organizational Divisional Departmental Individual

Measurement of actual Performance Comparison of Actual Performance with Standards

Taking Corrective Action

Follow Up

100
- 20 80

100

Step 1

Step 2

Step 46

Establish Objectives and Standards


Standards are the plans or the targets which have to be achieved in the course of business function

They can also be called as the criterions for judging the performance

Cont.
Standards generally are classified into two-:

Measurable or tangible - Those standards which can be measured and expressed are called as measurable standards. They can be in form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible- There are standards which cannot be measured monetarily. For example- performance of a manager, deviation of workers, their attitudes towards a concern. These are called as in tangible standards.

Measuring Actual Performance


Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.
Without measurement, effective control is not possible.

Comparing Results with Objectives and Standards


Comparison of actual performance with the planned targets is very important. Deviation can be defined as the gap between actual performance and the planned targets. The manager has to find out two things here- extent of deviation and cause of deviation

10

For example, if stationery charges increase by a minor 5 to 10%, it can be called as a minor deviation. On the other hand, if monthly production decreases continuously, it is called as major deviation.

11

Cont
Once the deviation is identified, a manager

has to think about various cause which has led to deviation. The causes can be Erroneous planning,

Co-ordination loosens,
Implementation of plans is defective, and Supervision and communication is ineffective, etc.

12

Taking Corrective Action


Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives here1. Taking corrective measures for deviations which have occurred; 2. After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow up is an important step because it is only through taking corrective measures, a manager can exercise controlling.

13

Relationship between planning and controlling


Planning and controlling are two separate fuctions of management, yet they are closely related. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other

14

Cont.

According to Billy Goetz, " Relationship between the two can be summarized in the following points: Planning precedes controlling and controlling succeeds planning. Planning and controlling are inseparable 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

16

You might also like