•21.1.

·2 Characteristics of Control
The process of control has the followi ng charac teristic s
l. Pervas ive Funct ion. _Control i~ a functi~ n. of every_ 1nanager_ alongwith other
manage rial functio ns hke plannin g, organ1s1ng, staffin g and directing. It • .
.
fact , a follow-up action to other function f IS, In
. . . s o manag ement.
. Manag ers at all le
have to perform this functio n to contrib ute to the achieve ment of organisational ve1s
objectives.
2. Review of Past Event s. Contro l leads to apprais al of past activities. Thus, it is
looking back. The deviati ons in the past are reveale d by the control process. This
is also known as feedback informa tio~. It will help in knowin g the reasons of poor
perform ance. Correc tive actions can be initiate d accordi ngly.
3. Forwa rd Lookin g. Contro l is linked with f~ture as past cannot be controlled. A
manag er can take correct ive action only in regard to future operati ons. Control·
is usually preventi·ve ·as presenc e· of control system . te_nds ·.to· minimi se .[Link],
losses and deviati ons from standa rds.
4. Action -Orien ted. Contro l implies taking correct ive measur es. Action is the
essence of control . The purpos e of control is achieve d only when corrective action
is taken on the basis of feedbac k inform ation. It is only ~ction which adjusts
perform ance to predete rmined standa rds, whenev er, deviati ons occur. A good
system of control facilita tes timely action so that there is minimu m waste of time
and e~ergy .
5. Contin uous Proces s. Just like other functio ns of manag ement, control is also
a continu ous activity. It involves constan t analysi s o( validity of standar ds, policies,
proced ures, etc. It also sugges ts correct ive actions in various processes. It does
not stop anywhe re. A manage r has to perform this functio n continuously alongwith
other functio ns.
6. Dynam ic Proces s. Contro l is a [Link] process~ It is flexible and not rigid.
Contro l involve s continu ous review of standa rds of perform ance and results in
correct ive action which may lead to change in the perform ance of other functions
of manage ment. Since manag ement is manag ing a busines s entity which keeps ?n
changin g, manage rial control is also dynami c. Manag ement will be failing in its
duty if its approa ch is not dynami c.
 Co~,--.,,·:,
1n g•c
.
~ e p t and Pro ces
7• Co s
_J 21.5
~~1:~
is 0 do es no t Cu rta il the Ri gh ts of
?e avoi~it~ ?f freedom. It is no t so. Ind ivi du als . 'fo so~ e people, con
trol
is bas ed e in fut ure . It is, in fac It is a pre ven tiv e action so tha t losses may
t, an act Qf guidance. Control in
to achievoen fac ts and fig ure s and an ent erp ris e
not on the wh im s of ma nag ers . Its purpose is
ent erp ris e a nd .m~ int ain accept
able pr_oductivit.y from all the res
our ces of an
21.i.3 :[Link]• .• • .b • • . · • •...
... .· ;· · •.· ._. •. • 1P etween Co
pla nn ing an d co·ntr-on· . ntrol and• Planning
a pla n bec om es ope rat · ing tre close~ . .• . . . . • . . .
y rel ate d ·to·. eac h oth er as shown . . .
from the tar ge ts an ~o :a ' control · in. Fig.. 21.1. After
is necessary to mea~ure progress,
effective sys tem of con t ~ t~k e cor to uncover deviations
rec tiv e ste ps. u· is also not pos
the rel ati on shi p bet we :o w; th0 ~t sible to thi nk of an
the existence of good plans. Billy E.
planning see ks con sis t n tP ~n nin Geotz has explained
g and con tro llin g in the following
ntrol see ks to com pe; n ' int egr ate words, "Managerial .
co d an d articulated programmes, wh
eve nts conform to plans". ile management

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--------- ------ ------------ ----__,_____ ------ ---------- ---------.
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J: ~
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Pla ;ni ng
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Performance \: :\ C+ rol
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: - - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
:
I

- - - -
- - - -
- - - -
- - - -
- • ____
___ • - · - - - -
- - - • . . .
.! ' .

• Fig: 21.1. Relationship· betwe~n

- planni~g [Link]-control
C~ntrol is alw ay s ba sed o~ pla
nn ing . It is also tru e tha t in a
planmng d_e~ends up on con tro lh~ run nin g ent erp ris e
g. Ev ery ~a na ge r use s cer tai n sta
and app rai sin g pe rfo rm a~ ce wh ich nda rds for me asu rin g
are lai d dow n by pla nni ng. Th e
turn, may rev eal the def ici enc y of pla con tro l process, in
ns an d ma y lea d to the rev isio n Qf
also lead to set tin g of ne w go als , im pro pla nni ng. It ma y
vin g sta ffin g and ma kin g cha nge s
of supervision, mo tiv a~ ion an d in the techniques
lea der shi p.
. Planning wi tho ut control is me
~ an empty exercise wi tho ut contro
.aningless and control without planni
ng is blind. Planning
lling. A good pla n will not bring any
nthe management is lac kin g in controlling. Pla concrete result
lhe ways of ach iev ing the m. It is contro nn ing identifies the goals and· determine
l which ens ure s attainme s
l~ormance an d tak ing cor rec tiv e act nt of goals by evaluating
ion. Control pre-supposes the existe
"'th which the ac tua l pe rfo rm an ce is nce of standards
to be compared. If the standards of
~e not set in ad va nc e the ma na ge performance
r will ha ve no ide a of 'wh at is con
!\anning mu st be done bef ore the act trol' ? Th~s,
ua l operation and control should foll
:dafter the act ua l op era tio n. Th e ?w plan~ durmg
exp eri enc e gained in controlling wil
eProc
l help improve
ess of pla nn ing .
 controlling : Concept and Process
=:::==-
II 21.S
7. Control does not Curtail the Rights of Individuals. •ro some people, control
is opposite of freedom.· It is not so. It is a preventive action so that losses may
be avoided in future. It is, in fact, an act of guidance. Control in an enterprise
is based on facts and figures and not on the whims of managers. Its purpose is
to achieve and .mainta~n acceptable pr_oductivit.y from all the resources of an
enterprise ..
. . . . . ' .
21.z.~ :~el_ati~_nship between Control a~d Plan~ing
.r1~~n1~g a:~d: controlling.• are close~y r~iat~d :-to·: e·a~li. other as show.n· .in. Fig~ ,21-.1.· After
\ a plan becomes operational, control is ·frecessary to mea~ure. progress, to uncover deviations
from the targets and to take corrective steps. It is also not possible to think of an
\ effective system of control without the existence of good plans. Billy E. Geotz has explained
the relationship between planning and controlling in the following words, "Managerial
planning seeks consistent, integrated and articulated programmes, while management
control seeks to compel events conform to plans".

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...--------
I :
Pla;ning
I
I: ~ Performance I!
:
:~trol
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:]
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:
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~--------------------------------------------------------------------------·
~

•
Fig_- • d control
21.1. Rel~tio~ship: b~tween plann1·ng an

. ays ase on planmng. It is also true th~t• ,n •

p anmng is alwuponbcontrolling.
depends
Control d • mana er u
Every a running enterprise
and appraising performance which are laid do!n b sesi°e~n standards for measuring
1
t~rn, may reveal the deficiency of plans and may lea~ fo :nmg._ The c;ntrol ?rocess, in
:t lead ~o _setting ~f n~w goals, improving staffing and mak:;;::::~:s ~:::gi,It_ may f
superv1s1on, mot1vat1on and leadership. c roques
. Planning without control is meaningless and control without planning is blind. Planning
~s an empty exercise without controlling. A good plan will not bring any concrete result
if the management is Jacking in controlling. Planning identifies the goals and ·determines
the ways of achieving t:hexn. It is control which ensures attainment of goals by evaluating
performance and taking corrective action. Control pre-supposes th• existence ofstandards
with which th• actual perforxnance is to be compared. If the standards of performance
are not set in advance the manager will have no idea of •what is control' ? Thus,
111
I planning must be done before th• actual operation and c~ntrol should foU~w plan~ du
and after the actual operation. Th• experience gained 1n controll g will help ,mpr

the process of planning.

 v,-,-

pROCE SS OF CONTR OL
Ii1- 3
sential elements of any control system are : (1) Setting standard s ; (2) MeasuTe ment
tfllee;;ormance ; (3) Compari son of performa nce with standard s ; and (4) Taking coTTective
of~ These steps are discusse d below :
act1on-
t. Setting Standar ds. The first step in control process is the setting up of standard s
f measure ment. Standar ds represen t criteria for performa nce. A standard acts as a
' 0 fi •rence line or a basis of appraisa l of actual performa nce. Standar ds
should be set
re e:isely and preferab le in qua~tita tive terms. It should be. noted that setting standard
( also closely linked with and is an integral part of the planning process. Standar ds are
:sed as the criteria or benchma rks by which perform ance is measure d in the control
process. Differen t standard s of performa nce are set up for various operatio ns at the
planning stag~. As a matter of fact, planning is the basis of control.
 21.s II
Essentials of Manage
ment
~
-------- -------- ------ Feedback
···············-----------------~------·-◄·······----------------------------·-,I
I
I I
I

e mg Operations Measurement Meets

Standards (Organising of Standards
(Planning) staffing, directin Performance

Does not
meet
Standards

Feedback
'----~·---------------◄------------------------ Corrective
.________ -_;. ___ -..------- ----♦- ---------------------------~-------------- A ct ion
Feedback

Fig. 21.2. The process of control

Establishment .of standards in terms of quantity, quality and time is necessary for
eff~ctive control because it is essential to determine how the performance will be appraised.
The [Link] step in the control process, i.e., measurement of performance, has no sense
unless it can .be compared with some predetermined standards. Standards should be
· accutate, precise, acceptable and workable. Standards should be flexible, i.e., capable of
being· changed when the circumstances require so. Standard is bound to fail if it is based
on reco·rds of past.. performance which show either too high or too low achievement.
2. Measurement of Pe_rformance. After establishing the standards, the second step
is t9 measure actual performance of various individuals, groups or upits. Management
should not depend_ upon the guess that standards are being met. It should measure the
performance and compare· it .with the standards. The quantitative measurement should
be ·[Link]·· in cases.· where· standards have. been set. in· numerical terms. This will make
evaluation easy and simple. In all other cases, the performance should be measured in
term·s of qualitative factors as in case of performance of industrial relations manager. His
performance• can be measured in terms of attitude of wQrkers, frequency of strikes and
morale of workers. Again, attitude and morale of workers are not capable of being
measured ·quantitatively. They have to be measured qualitatively.
3. Comparison.· of Performance with Standards. Appraisal of perforµiance or
comparing of actual performance with predetermined standards is an important step in
control process. Comparison is easy where standards have been set in quantitative terms
as in prpduction and marketing. In other cases, where results are intangible and cannot
be measured quantitatively, direct personal observation, inspection and reports are a few
methods which can be used for evaluation. The evaluation will reveal some deviations
from the set standards. The evaluator should point out the defects or deficiencies in
perfoiman~e and investigate the causes responsible for these.
AU deviations need· not be brought to the native of top management. The deviations
should be brought to the notice of top management when they are too high. A range ~f
deviations should be established beyond which the attention of top management• 15
warranted. Only such cases should be reported up which pinpoint exceptional situations.
 I
oUinQ : Co nce pt and Process .
oot1tr ll
21.9
is kn ow n as 'm an ag em t b -
w; at Y except·ion. ' According to Dale th
~sl
nt [Link]::., ts
J Id
sho u me e
t th ere cri ter ia. •Firen st[ c control
- ontroldreports mu st produce fi~ eth
lrePot coIIlP ara
1t,~1ter Sec on dly
ble
,
fro m
the y
on
mu
e per
st be
iod
coo
to a:O
rdi nat
,th
e~r a~ h from one section of the ~::a- at are
ss)to
ns of the bu sin ess bu t als o so k at they no t only ~ortray the1ne res u ts
,Jlo~[Link] sec tio ' ma e pla in th wh y the bus ine ss
d11•• • ll
cou ld be exp ect ed. Fin al[ e reasons
lill t is no t do ing so we as h
ge t the bir d's eye vie Y, the y mu st be presented in suc
i5 o tha t the ma na ge r can
{otJJl C t. A ct1. on . Th e final ste p •[Link] .
, ra kin g d or•ret'c 1v e in th e con • taking corrective
tro.l process l8
l •• ur aga in an d
. so tha t ev1a ion s ma y no t occ n decisions be ~h~ectives of the organisation are
ing cer tai
b.
l9ct1_0:ed. Th is wi ll inv olv e tak g
go als or sta nd ard s rea ssi gn me nt or Yl ~fim~agement like replannin
/'cbtedrawing of ion and t;a~r1_ ica ti;n of:ut ies . It may also
ing the pro ces s' of sel ect
I°' r:s ita ble ref orm fiu lt~ing Iof twho r ers. Thus, con tro1
ma nag eri al r- d
oecet1·on ma y req uir •
ftl1lc
e ch an ge in all oth er
i~
nc ions.
in the lig ht of observations. Jos eph
e sta
M=i:'::u
nd ard s

at thi s sta ge : (1) takin ~

io be def ect ive , the y wi ll be set up aga
y com mi t two typ es of mi sta kes
l ointed ou t tha t a ~a n~ ge r ma fai lin g to tak e action when some corr ctivg
nee ded , an d (2)
Yction wh en no act ion is vid e women basis for help. e t~
t 'ction is nee ded . A good con
of
tro
ma
l sys
kin g
tem
eit he
sho
r of
uld
the
pro
se typ es of errors. Of course, th ~final
,e •~anager est im ate the ris ~s rec t act ion is tak en at the correct
time.
a con tro l sys tem 1s wh eth er cor
,e iest of
>f
ES OR RE QU IR EM EN TS OF EFFECTIVE CONTROL
d ,1.4 PR IN CI PL
ipl ~
eff ect ive con tro l ov er org ani sat ion al act ivi tie s, the following pr inc
p
For ha vin g
should be followed:
tt
Ob jec tiv es. Be for e pla nn ing a control sys tem , it is ess en tia l to
1. Em ph asi s on ect ed
.e
ob jec tiv es of the org ani sat ion . The control sys tem mu st be dir
d lnow clearly the ion s fro m the objectives ear ly en ou gh to
pe rm it
ten tia l or act ua l dev iat
e 1owards the po
n . dfective cor rec tiv e act ion . y
.S
of Co ntr ol Te ch niq ue s. Co ntr ol tec hn iqu es are eff ici ent wh en the
d . 2. Ef fic ien cy sib le cor rec tiv e act ion wi th the mi nim um
of
fro m pla ns an d ma ke pos
g ~etect deviations· •
'mslought con seq uen ces . t
ty ~o r Co ~tr ol. Th e ma in res po nsi bil ity fo-r con t~o llin g sho uld res
r 3. Re sp on sib ili
im ple me nta tio n of pla ns.
n 11 the ma nag er ch arg ed wi th the
1

y con tro l sys tem sho uld be des ign ed to ma int ain dir ect co nta ct
.: 4. Di rec t Co ntr ol. An the re are a nu mb er of co ntr ol sy ste ms
d con tro lle d. Ev en wh en
.., ~tween the co ntr oll er an ts, the for em an at the fir st level is sti ll im po rta nt be cau se he •
s ~ovi~ed by sta ff spe cia lis • ·
8
direct kn ow led ge of per for ma nce .
n n. Th ~
0 ity . Co ntr ols sho uld be tai lor ed to fit the ne ed s of th~- org an isa ti?
·low • S~ ita bil th the
ati on co nc ern ing cu rre nt pe rfo rm an ce sho uld co rre spo nd wi
s 1 of inf orm
yed . If a sup eri or is to be abl e to con tro l ov era ll op era ~o ns,
.f ~ganisational str uc tur e emplo ota s ,an q
st pa tte rn tha t wil l pro vid e con tro l for ind ivi du al pa rts . Bu dg ets , ·qu
s • th:u find a llin g sep ara te de pa rtm en ts.
1
• techniques ma y be use ful in con tro