Defined
"Control is the measurement and correction of performance of activities of subordinates in order to make sure that enterprise objectives and plans are being accomplished".
- Koontz and O'Donnell
Characteristics
Following are the features of controlling:
1. Pervasive function
Controlling is essential at all levels of management. So it is a pervasive function.
2. Review of past activities
Control function always review the past activities to conform working is as per plan. So it will help to know whether all activities are in track or need corrective actions.
3. Forward looking
Control is future oriented and past cannot be controlled. A manager can take corrective action on a future period. So controlling is forward looking.
4. Action Oriented
Controlling is action and result oriented. The main aim of controlling is to take corrective action whenever performance is not as per the standards. I f action is not taken immediately; planned performance will not be an actual. So action is the essence of control.
5. Dynamic Process
Business is a dynamic activity, so controlling must be a dynamic function. It is flexible and not rigid. Control involves continuous evaluation of performance against the planned performance.
Importance of control
Control is an important function of management, which helps to realise the objectives of the organisation. An effective device of control will help to achieve the following benefits:
1. It makes planning meaningful
Controlling keeps continuous watch over the performance of the subordinates, this helps to detect the mistakes and enables the management to take corrective action. So controlling keeps the organisation on the right track and ensures the attainment of planned results. So controlling makes planning meaningful.
2. Correction of deviation
Control evaluates the actual performance against standard. This will help organization to detect the deviations, if any, from the standard performance and take steps to correct it and avoid the repeated occurrences of it.
3. Decision making
Controlling helps the management to identify the gap between plan and actual before they become unmanageable and leads the management to take suitable decisions to erase the gap. Moreover for taking rectifying decision, the controlling system provides information about why and how the deviation occurred.
4. Better planning
Controlling also investigates the causes of deviation, if any and identifies the shortcomings of a plan. This will be useful for bettering planning in future.
5. Co-ordination
Controlling facilitates the work of coordination. Planning decides the standards of each department. If any section deviate coordination is impossible. Controlling ensures smooth functioning of each department by avoiding overlapping and duplication of activities and there by act as a means of coordination.
6. Decentralisation of authority
Under decentaralisation authority is delegated to various levels of the management. So top management have to watch the delegated authority is using properly, if not it must be controlled. Thus sound control system is essential for effective decentaralisation.
7. Control facilitates effective supervision
The supervisor in the course of controlling identifies possibility for deviations in action and points out the timely remedial measures for further occurrences of such deviations
Relationship between planning and controlling
Planning means deciding in advance what is to be done, how it is to be done, where it is to be done, when it is to be done and by whom it is to be done.
Controlling
means ensuring actual performance are equal to planned performance.
Planning and
controlling are interdependent and interrelated. Without planning there is no
base for controlling and without effective controlling, planned activities
cannot be properly implemented and have no improvement in future plans. It is
often said that planning is looking ahead and controlling is looking back. This
means, planning decides the future and controlling ensures safe to planning,
when it implemented.
Planning act as the first step in the process of controlling. Control act as a watch dog for ensuring the planned results. If deviations are find out, controlling arranges all the necessary steps to rectify the deviations and clear the path towards the attainment of the planned results. Thus planning and controlling may be called as the inseparable twins of management.
Steps in the Control Process
There are four important steps in the process of controlling. They are as follows:
1. Establishment of standards
2. Measurement of performance
3. Comparison of performance with the standards
4. Taking a corrective action.
1. Establishment of standard
Standards refer to the criteria for evaluating the performance. Fixing standards is the first step in the process of controlling. These are the guidelines to the workers about the expectation of the management from them. The standards are set on the basis of objectives, policies and programmes laid down in planning. It may be set in terms of quality, cost or time, and usually in the form of budgets or targets in clear terms. It should be always flexible, realistic, attainable, understandable and acceptable.
2. Measurement of performance
Measurement of actual performance of individuals, groups and departments is the second step in the process of controlling. It means evaluation of work actually done and result achieved. It may done on the basis of money spent, unit produced, customers contacted, volume of sales affected, time taken or result achieved.
3. Comparison of actual performance with standards
This is the third important step in the control process. If performance matches the standards we can say that everything is under control. If it is not matched, this step helps the management to find out the extent of deviation, why and how they occurred and enables the management to prevent their occurrence.
4. Taking corrective action
If find out any deviation, the next step of controlling is to take corrective action so that deviations may not occur again and the plans are properly executed. Right action at right time should be taken in order to avoid deviation in future. Following are the some important corrective action:
1. Redrawing plans
2. Modifying the planned objectives
3. Re organising the organisational structure
4. Employing additional workers through scientific
selection and training.
5. Providing better leadership
6. Revising policies
7. Providing positive motivation techniques.
Management by exception
All deviations
need not be brought to the attention of top management. Usually only those
deviations which seem exceptionally high and which cannot be easily solved by
lower level management alone, should be reported to top management. This is known
as management
by exception. This exemption helps to save managerial time, effort and talent
and use it only in case of greater importance.
End
