Controlling
1. Introduction
Management has four main functions:
Planning
Organizing
Leading
Controlling
There is also an important function:
Staffing
Management means:
Doing work through others
So the manager must choose the right people
Controlling is the last function of management
Without controlling, management is incomplete
Controlling ensures that the organization achieves its goals and mission
2. What is Controlling?
Controlling means:
The activities that ensure that the organization achieves its goals and
standards
It also means:
Making sure that actual performance follows the planned performance
And identifying any deviations and their causes
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3. The Controlling Process
A successful manager follows four main steps:
1. Setting performance standards (objectives)
2. Measuring actual performance
3. Comparing actual performance with planned performance
4. Taking action (decision-making)
4. Step One: Setting Performance Standards
Important idea:
If you cannot measure something, you cannot manage or control it
Standards are:
The measures used to evaluate performance
These standards come from objectives
Objectives are translated into:
Strategy
Business plan
Action plan
KPIs
Each management level has different standards:
Top management
Strategic goals
Middle management
Business plans
Department managers
Action plans
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Employees
KPIs
Standards are used to:
Measure performance
Motivate employees
Evaluate employees
They are also used in performance appraisal
Types of Standards
1. Administrative Standards
Focus on:
Who
When
Why
Example:
Monthly reports
2. Technical Standards
Focus on:
How work is done
Example:
Safety standards
Quality standards
ISO standards
5. Step Two: Measuring Actual Performance
After setting standards, the organization measures actual performance
This includes:
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Service quality
Actual results
Measurement depends on:
Importance of activity
Nature of organization
Examples:
Citizen satisfaction may be measured daily, weekly, or monthly
Air pollution must be measured daily or more
6. Step Three: Comparing Performance
The manager compares:
Actual performance with planned performance
If there is a difference, this is called a gap
Important idea:
The gap is only a symptom, not the real problem
Managers must search for the root cause
They must use analysis and thinking
7. Step Four: Taking Action
After identifying the gap, the manager takes action
There are three main types of decisions:
1. Corrective Action
If performance is below standards
The manager fixes the problem
This may include improving:
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Planning
Organizing
Leading
Examples:
Improving planning:
If goals are unrealistic, they must be changed
Improving organizing:
Clear structure helps identify responsibility
Improving leading:
Improve communication and motivation
2. Change Standards
If standards are too high or too low
The organization should adjust them
Because conditions may change
3. Reward Positive Performance
If performance is good
Employees should be rewarded
Rewards can be:
Financial
Moral
Promotion
This encourages good performance
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8. Relationship Between Planning and Controlling
There is a strong relationship between planning and controlling
Planning sets the goals
Controlling checks if goals are achieved
Without planning:
There are no standards
Without controlling:
We do not know if we succeeded
9. Types of Controlling
1. According to Time
Pre-control (before work)
Focus on inputs
Example:
Selecting employees
Checking materials
Concurrent control (during work)
Monitor work while it is happening
Feedback control (after work)
Evaluate results
2. According to Source
External control
From outside organizations
Examples:
Auditors
Government agencies
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Internal control
From inside the organization
Examples:
Finance department
Legal department
Self-control
From the person himself
Based on responsibility and ethics
3. According to Level
Strategic control
Top management
Tactical control
Middle management
Operational control
Daily activities
[Link] of Controlling
Controlling helps organizations to:
Achieve goals
Improve performance
Correct mistakes
Improve services
Ensure accountability
In public organizations:
Controlling ensures good service to citizens
[Link] and Public Service
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Public organizations exist to serve citizens
So controlling ensures:
Service quality
Efficiency
Citizen satisfaction
Sometimes organizations use external agencies to measure citizen
satisfaction
[Link]
Controlling is a very important function
It ensures that work is done correctly
It helps managers:
Detect problems
Solve problems
Improve performance
Final idea:
Without controlling, there is no successful management
Discussion Question
What is the main problem in public organizations:
Lack of resources
or
Weak controlling and management