CONTROLLING
Controlling in management is the systematic process of monitoring
organizational activities, comparing actual performance against set
standards (plans), and implementing corrective actions to ensure goals
are achieved effectively. It is a continuous, forward-looking function that
links current performance to future goals, ensuring organizational
efficiency, accountability, and profitability.
Controlling Process
1. Setting Performance Standards: Establishing targets (e.g., financial
goals, production quotas, quality standards) derived from the planning
phase.
2. Measuring Actual Performance: Actively monitoring work progress
through personal observation, reports, or data systems.
3. Comparing Performance with Standards: Analyzing deviations
between what was planned and what was achieved.
4. Taking Corrective Action: Implementing changes to correct negative
variances or improve performance for future cycles
Types of Control Systems
Feedforward (Pre-control): Anticipates problems and sets policies
before work begins.
Concurrent (Real-time): Monitors ongoing work to fix problems
immediately.
Feedback (Post-action): Examines final results to improve future
performance
Importance of Controlling
Goal Realization: Ensures that organizational activities align with
objectives.
Efficiency: Promotes optimal resource usage and reduces waste.
Adaptability: Enables management to adapt to changing environmental
factors and correct errors.
Performance Improvement: Enhances accountability and provides
feedback for better decision-making.
Techniques of Controlling
Controlling techniques in management are the methods and tools
organizations use to monitor performance, ensure plans are executed as
intended, and implement corrective actions. They are broadly
categorized into Traditional and Modern techniques, designed to
maintain efficiency and reach company goals.
Traditional Techniques
These are classic, historically established methods used by managers to
oversee daily operations and financial health.
Budgetary Control: A highly systematic method where all
organizational operations are mapped to budgets (e.g., sales, cash,
production). Actual performance is continuously compared to the budget
to keep expenditures in check.
Personal Observation: The oldest technique where supervisors directly
oversee employees on the shop floor. It provides first-hand insights,
though it can be time-consuming and subjective.
Break-Even Analysis: A mathematical technique that calculates the
exact point where total revenue equals total costs
Statistical Data & Reports: Using historical charts, graphs, and
averages (such as correlation or variance analysis) to identify
operational and quality control trends
Modern Techniques
These techniques focus on measuring overall efficiency, assessing long-
term strategic viability, and evaluating performance in modern, complex
environments. It allows managers to gauge how effectively capital is
being used to generate profit.
Management Audit: A comprehensive, independent evaluation of the
management's overall performance. It assesses organizational policies,
operating procedures, and administrative efficiency
PERT / CPM: Program Evaluation and Review Technique (PERT) and
Critical Path Method (CPM) are used for planning, scheduling, and
controlling large-scale projects by mapping out step-by-step tasks and
identifying potential bottlenecks(blocks/hindrances/obstacles).
Management Information System (MIS): An integrated software
and human framework that provides managers with continuous,
structured, and real-time data to support decision-making and
performance tracking.
Proactive vs. Reactive Timing
In addition to the specific tools above, controlling techniques are applied
at different stages of the operational workflow:
Feedforward Control (Preventative): Identifies and addresses
problems before they happen. (e.g., rigorous employee training, strict
raw material inspections).
Concurrent Control (Real-time): Monitors processes as they
occur. (e.g., direct supervision, automated assembly-line sensors).
Feedback Control (Reactive): Measures outcomes after a process
or project is complete. (e.g., analyzing annual financial statements, end-
of-quarter customer satisfaction surveys)