TOPIC NINE: THE CONTROL FUNCTION
9.1 Learning objectives
By the end of this topic the learners should be able to;
a) Explain the purpose of control and the relationship with planning
b) Discuss the essentials for effective control and the characteristics of control
c) Describe the three types of control
d) Describe the steps in the control process
e) Explain the principles of control
This is the process through which managers assure that actual activities conform to
planned activities
It is checking current performance against predetermined standards contained in the
plans with a view of ensuring adequate progress and satisfactory performance
Steps in Control Process
1. Establish standards
2. Measure/monitor performance
3. Compare performance with standards
4. Take corrective action
Characteristics of control
1. Planning is the basis of control: Control is said to be checking performance as per
what has been planned. So planning precedes controlling and sets the standards
and targets of performance.
2. Control is a continuous process: It is an ongoing and dynamic function of
management. It involves a continuous review of performance and is not a one-time
exercise. The period of control normally depends upon the nature of work, the
amount of work and the policies of management.
3. Control is all pervasive: Control is exercised at all levels of management, and is
done in every functional area and at each unit or department. Thus, control is all
pervasive.
4. Action is the essence of control: Control is an action-oriented process. The very
purpose of control is defeated if corrective action is not taken for improvement of
performance or the revision of plans.
5. Control is forward looking: Control is futuristic in nature. It measures current
performance and provides guidelines for the corrective action. This ensures future
performance as per plans. Thus, it is forward looking.
Essentials of Good Control
In order to ensure that the control system is effective and serves its purpose, it
must meet the following requirements.
(a) Simple: It should be simple and easily understandable.
(b) Clear objectives: Objectives should be clearly and specifically laid down and
expressed in quantitative terms leaving no scope for subjective interpretation.
(c) Appropriate: It should be appropriate to suit the requirements of the
organization.
• Control system for a manufacturing concern is to be different from that of a
trading or service organization.
(d) Flexible: It should be flexible and responsive to changing requirements of the
organization and be adaptable to the new developments.
(e) Forward looking: The control system should be directed towards future. It
should indicate the steps to be taken in future so that the deviations do not
continue and reduced to the minimum.
(f) Concentrate on exceptions: An effective and economical control system must
focus attention on factors critical to performance. The significant deviations from
the standard (whether positive or negative) should be brought to the knowledge
of the management.
If we try to control every small aspect, the system is likely to create problems
rather than ensuring planned performance, and may prove costly.
(g) Efficient control techniques: The control techniques are considered efficient
if they help in detecting the derivations at an early stage and help in achieving
the desired results. There are various techniques or methods that are used for the
purpose of control.
Importance/Purpose of Control of Control
(a) Helps in achieving the targets;
(b) Helps in taking corrective action on time;
(c) Helps in monitoring and improving employees’ performance;
(d) Helps in achieving better coordination;
(e) Helps in better planning;
(f) Helps in minimizing errors;
(g) Facilitates decision making; and
(h) Simplifies supervision
Types of Control
• Preliminary- These are future oriented (feed forwarding) e.g. assuring quality of
raw materials before the transformation process begins
• Concurrent control- Takes place while the activity is ongoing e.g. quality control
at every process. This serve as warning posts with an aim of directing attention
e.g. periodic performance reviews
• Feedback control- this takes place at the end of the process. The aim is to provide
feedback and assist in the improvement of future performance e.g. accounting
records, inspection of goods,
Principles of Control
Principle of assurance of objective
• The task of control is to assure accomplishment of objectives by detecting
potential or actual deviation from plans early enough to permit effective
corrective action.
Principle of efficiency of controls
• The more control approaches and techniques detect and illuminate the causes of
potential or actual deviations from plans with the minimum of costs or other
unsought consequences, the more efficient these controls will be.
Principle of control responsibility
• The primary responsibility for the exercise of control rests in the manager
charged with the execution of plans.
Principle of direct control
• The higher the quality of managers and their subordinates, the less will be the
need for indirect controls. (The principle may be termed as principle of reduced
controls. A superior can spend less time in control activities if he has higher
quality managers and their subordinates in his department.)
Principle of reflection of plans
• The more controls are designed to deal with and reflect the specific nature and
structure of plans, the more effective they will serve the interests of the
enterprises and its managers.
Principle of organizational suitability
• The more controls are designed to reflect the place in the organization structure
where responsibility for action lies, the more they will facilitate correction of
deviation of events from plans.
Principle of individuality of controls
• Controls have to be consistent with the position, operational responsibility,
competence, and needs of the individuals who have to interpret the control
measures and exercise control.
Principle of standards
• Effective control requires objective, accurate, and suitable standards.
Principle of critical-point control
• Effective control requires attention to those factors critical to appraising
performance against an individual plan.
The exception Principle
• The more a manager concentrates his control on exceptions, the more efficient
will be the results of this control. Managers should concentrate their efforts on
matters that deviate significantly from the normal and let subordinates handle
routine matters. The idea here is that managers should concentrate on those
matters that require their abilities and not become bogged down with duties that
their subordinates should be doing
Principle of flexibility of controls
• If controls are to remain effective despite failure or unforeseen changes in plans,
flexibility is required in the design of controls.
Principle of Action
• Control is justified only if indicated or experienced deviations from plans are
corrected through appropriate planning, organizing, staffing and directing.
Common Techniques of Control
1. Break Even Analysis
2. Programme Evaluation and Review Technique (PERT)
3. Critical Path Method (CPM)
4. Statistical Quality Control (SQC)
5. Management Audit
6. Budgetary control
Review questions
a) What is the relationship between controlling and planning functions of
management
b) Explain the principles of control. What is the rationale for the principle of
exception and the principle of action?
c) Discuss the importance of the control function of management