Controlling

Controlling consists of verifying whether everything occurs in conformities with the plans
adopted, instructions issued and principles established. Controlling ensures that there is effective
and efficient utilization of organizational resources so as to achieve the planned goals.
Controlling measures the deviation of actual performance from the standard performance,
discovers the causes of such deviations and helps in taking corrective actions

According to Brech, “Controlling is a systematic exercise which is called as a process of

checking actual performance against the standards or plans with a view to ensure adequate
progress and also recording such experience as is gained as a contribution to possible future
needs.”

According to Donnell, “Just as a navigator continually takes reading to ensure whether he is

relative to a planned action, so should a business manager continually take reading to assure
himself that his enterprise is on right course.”
Controlling has got two basic purposes

1. It facilitates co-ordination
2. It helps in planning

Features of Controlling Function

Following are the characteristics of controlling function of management-

1. Controlling is an end function- A function which comes once the performances are made in
conformities with plans.

2. Controlling is a pervasive function- which means it is performed by managers at all levels and
in all type of concerns.

3. Controlling is forward looking- because effective control is not possible without past being
controlled. Controlling always looks to future so that follow-up can be made whenever required.

4. Controlling is a dynamic process- since controlling requires taking review methods, changes
have to be made wherever possible.

5. Controlling is related with planning- Planning and Controlling are two inseparable functions
of management. Without planning, controlling is a meaningless exercise and without controlling,
planning is useless. Planning presupposes controlling and controlling succeeds planning.

Importance of Control
Organizations try to achieve their objectives through various actions. Form this point of view, all
the actions lead to the achievement of organizational objectives. However, the organizations

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 must also monitor whether they are achieving their objectives or not. Thus, control is an
integrated action of an organization or manager. It offers helps in the following directions:

1. Adjustments in Operations. A control system acts as an adjustment in organizational

operations. Every organization has certain objectives to achieve which become the bases for
control. It is not sufficient merely to have objectives but also to ensure that these objectives are
being achieved by various functions. Control provides this clue by finding out whether plans are
being observed and suitable progress toward the objectives is being made, and action, if
necessary, to correct any deviation. This may result in taking actions more suitable for the
achievement of organizational objectives.

2. Policy Verification. Various policies in the organization generate the need for control. For
organizational functioning, managers set certain policies and other planning elements which
letter become the basis and reason for control. They become basis in the sense that
organizational’ performance is reviewed in these lights. They also become the reason for control
because through these, an organization tries that its various individuals adhere to such
framework. In this process, the organization and its management can verify the quality of various
policies.

3. Managerial Responsibility. In every organization, managerial responsibility is created through

assignment of activities to various individuals. This process starts at the top level and goes to the
lower levels. However, when a manager assigns some activities to his subordinates, he remains
responsible for total portion of activities for their ultimate performance. It is quite natural that
when a person is responsible for the performance of his subordinates, he must exercise some
control over them. Thus, the control is required because of the very basic nature of the
organization itself. In large organizations, many individuals contributed to the organizational
objectives. For efficient performance, they are arranged in hierarchy, forming superior is
responsible for the activities of his subordinates also, the control flows throughout the
organization beginning at the level, the only difference being nature and scope of control.

4. Psychological Pressure. Control process puts a psychological pressure on the individuals for
better performance. The performance of the individuals is evaluated in the light of targets set for
them. A person is likely to put better performance if he is aware that his performance will be
evaluated. He may feel pressure to achieve the results according to the standards fixed for him.
This is further complemented by the reward and punishment based on the performance. Since the
performance measurement is one of the basic elements of the control process, it ensures that
every person in the organization contribution to his maximum ability.

5. Coordination in action. Through coordination is the essence of management and is achieved

through the proper performance of all managerial functions, control affects this aspects
significantly. Control systems are designed in such a way that they focus not only on the

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 operating responsibility of a manager but also on his ultimate responsibility. This forces a
manager to coordinate the activities of his subordinates in such a way that each of them
contributes positively towards the objectives of the superior. Since this follows throughout the
organization, coordination is achieved in the organization as a whole.

6. Organizational Efficiency and Effectiveness. Proper control ensures organizational efficiency

and effectiveness. Various factors of control, namely, making managers responsible, motivating
them for higher performance. And achieving coordination in their performance, ensure that the
organization works efficiently. The organization also moves towards effectiveness because of
control system. The organization is effective if it is able to achieve its objectives. Since control
focuses on the achievement of organizational objectives. It necessarily leads to organizational
effectiveness.
Looking into the various roles that control system plays in the organization, the management
should devise a control system which effectively meets the demands of the organization. The
manager can do this if he is aware to the essential feature of effective control system.

Stages of Control
Depending on the stages at which control is exercised, it may be of three types : (1) control of
inputs that are required in an action, known as feed forward control; (2) control at different
stages of action process, known as concurrent, real-time, or steering control; and (3) post-action
control based on feedback from the completed action, known as feedback control. Control at
various stages of action is presented in

Feed forward Concurrent

Control
Control

Inputs Processing Outputs

Feedback Control

Stages of Control

Flow of information
Corrective Action

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 Feed forward Control. Feed forward control involves evaluation of inputs and taking corrective
action before a particular sequence of operation is completed. Thus, it attempts to remove the
limitations of time lag in taking corrective action. Feed forward control monitors inputs into a
process to determine whether the inputs are as planned. If inputs are not as planned, corrective
action is taken to adjust the inputs according to the plan so that the desired result are achieved
within the planned inputs. It is just like hunting a duck. A hunter will always aim ahead of a
duck’s flight to compensate for the time lag between a shot and a hoped-for hit.

To be effective, feed forward control should meet the following requirements:

1. Thorough and careful analysis of the planning and control system must be made and the more
important input variables identified.
2. A model of the system should be developed.
3. The model should be reviewed regularly to see whether the input variables identified and their
relationship still represent realities.
4. Data on input variables must be regularly collected and put into the system.
5. The variations of actual input data from planned inputs must be regularly assessed, and their
impact on expected results is evaluated.
6. Action must be taken to show people problems and the measures required to solve them.

Concurrent Control: Concurrent control is exercised during the operation of a programmed. It

provides measures for taking corrective action or making adjustments while the programmed is
still in operation and before any major damage is done. In the organizational context, many
control activities are based on this type of control, for example, quality control during the
operation, or safety check in a factory. Here, the focus is on the process itself. Data provided by
this control system is used to adjust the process.

Feedback Control: Feedback control is based on the measurement of the results of an action.
Based on this measurement, if any deviation is found between performance standard and actual
performance, the corrective action is undertaken. The control aims at future action of the similar
nature so that there is conformity between standards and actual. This is required because,
sometimes, feed forward or concurrent control is not possible to apply, for example, many
personal characteristics of an individual which go into behavioral process are not measurable,
and hence feed forward control is difficult to apply. In the business organizations, top
management control is mostly based on feedback. To make feedback control effective, it is
essential that corrective action is taken as soon as possible.

Essentials of Effective Control System

Management control is essentially the same basis control process as that found in physical,
biological and social systems. Many systems control themselves through information feedback,
which shows deviations from standard and initial changes. In other words, system use of their
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energy to feed back information that compares performance with a standard and initiates
corrective action.

1. Control by Objectives

Objectives clarify the expected results in meaningful and relative terms. For controlling process
individual and organizational objectives are to be refined and linked with individual
accountability for serving as effective control standards. For controlling objective should be
definite and determinable in a clear and a positive way. The standards regarding objectives
should be clearly defined in terms of quantitative and qualitative objectives.

2. Organization Suitability

A control system should be tailored to fit the organization pattern, showing the assignment of
tasks, the delegation of authority and the structural relationships between management positions.

3. Efficiency

Deviation from plans should be detected quickly and corrective action should be taken by a
control system promptly. A good control system should take corrective action to check further
deviations through appropriate planning. Organizing and directing.

4. Flexibility

On account of unforeseen circumstances plans are changed. Control should remain effective to
adjust with corresponding changes. Control system should be flexible so that it remains workable
in the case of changed plans, unforeseen circumstances and in failures. Much flexibility in
control can be provided by having alternative plans for various probable situations. In fact,
flexible control is normally achieved through flexible plans.

5. Forward Looking

The time lag in the management control process shows that control must be directed towards the
future if it is to be effective. What managers need for effective control, is a system that tells
them, in time to take corrective action.

Though many of the controls are instantaneous, they must focus attention as to how future
actions can be confirmed with plans. In fact, the control system should be such that it provides
aid in planning process. This is done in 2 ways: it draws situation where new planning is needed
and it provides some of the data upon which plans can be based.

6. Human Factor

A good controlling system should be ‘worker centered’ than ‘work centered’. A technically well-
designed control system may fail if human being reacts unfavorably to it.

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 7. Economy

A good control system must take into consideration the cost aspect. A small organization cannot
afford to have an elaborate and expensive control system. Economical factors responsible are
size of the organization, manager selecting the critical points and availability of funds. It is
ensured that costs of control system are less than its benefits.

8. Simplicity

A good control system should be easy to implement. Besides the simplicity in the design of
control reports, forms, and procedures, the control structure in to be balanced properly.

It must be simple and understandable so that all managers can be used effectively. Effective
control requires consistency with the position, operational responsibility, ability to understand
and needs of the individual concerned.

9. Self-control

A self-controlled system for controlling each dependent independently can be tied together by an
overall control system.

10. Promptness in Reporting Deviations

The success lies in the fact that it points the deviation promptly and takes corrective actions
immediately. Similarly, an ideal control system detects deviation promptly and informs the
manager concerned to take timely actions. This is done through designing appraisal and
informing systems.

11. Pointing out Exceptions at Critical Points

Control should point out exception at critical points and suggest whether action is to be taken for
deviations or not. Some deviations in the organization have no impact while others; though very
little in quantity may have great significance. Thus, control system should provide information
for critical point control and control on exception. The critical point control stresses that
effective control requires attention to those factors critical to appraising performance against an
individual plan.

CAUSES OF RESISTANCE TO CONTROL

Control implies and involves a continuous check on the performance and behavior of people in
the organization. Some individuals adjust with control, others resist it. The major causes of
resistance to control are as follows:

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1. Curb on Freedom. The basic notion of the term control is to curb freedom as it tries to
regulate behavior and performance in a specified way. This specified way may not match
with individuals’ own way of behaving and doing. To the extent, there is a difference
between specified way and natural way of behaving, control is resisted to make it more
meaningful. However, this gap may be interpreted differently by different individuals
because they differ in their orientations. Thus, some individuals resist control more
others.

2. Curb on Creativity and Innovation. Human beings have been endowed with great
amount of creativity and innovation. However, they can use their creativity and
innovation in inductive environment which must be free from control and regulation as
these put unnecessary curbs on the motivation to be creative and innovative. For
example, Chris Argyris, a famous social psychologist, has pointed that individuals want
to move from immaturity to maturity; from positivity to activity and creativity but
organizations tend to curb this movement by imposing several types of control.
Therefore, resistance to be controlled is a natural phenomenon.

3. Rigid Control Standards. Individuals’ resistance to control emerges from the feeling
that control standard are set too high and are observed rigidly. There may be a variety of
factors which influence their work performance, and many of these factors are not
controllable by them. Since control results are used as basis for the progression of
individuals’ career in the organization, they resist it to safeguard their career.

4. Faulty Evaluation System. Individuals object to control because of the perception that
evaluation system through which the performance is measured may not be objective and
many shortcomings may emerge in the evaluation process. This is likely to happen more
in the case of work performance which cannot be measured quantitatively. Expressing
work performance in qualitative way may have different interpretations as the concept of
quality is influenced by personal factors. Thus, what may be a good quality for one
person may not be good for another person? Because of these individual factors, often,
there is a clash between those who exercise control and who are controlled.

5. Fear of Discrimination. Individuals may perceive that they are likely to be discriminated
by those who exercise control. This perception is likely to enhance when evaluation
system is faulty; there is lack of trust between controller and controlled; and control
information is used to devise reward and punishment system. In these situations,
individuals tent to resist control terming it as unfair, unjust, and discriminatory.

6. Against Self-control. Organizations apply control because they feel that individuals lack
self-control and, therefore, some amount of control should be exercised for orderly
behavior and work performance. In fact, control mechanism is the basic in-built feature
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of modern organizations. For example, Charles handy has viewed. “Most of our
organizations tent to be arranged on the assumption that people cannot be trusted or relied
on, even in tiny matters.” Thus, this natural tendency of the organizations works against
self-control. This is the reason that controls are resisted by those individuals more who
have internal locus of control as against those with external locus of control. Those who
have internal locus of control believe that they control and shape the course of events.
These people believe more on self-control rather than externally- imposed control and
resist it.

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