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Understanding the Control Process in Management

Controlling is the management process of monitoring and evaluating performance against established standards, and taking corrective actions when necessary. The control process involves establishing standards, measuring actual performance, comparing it with standards, and implementing corrective actions if needed. Effective control systems should be understandable, flexible, economical, and provide useful information to support decision-making.

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5 views14 pages

Understanding the Control Process in Management

Controlling is the management process of monitoring and evaluating performance against established standards, and taking corrective actions when necessary. The control process involves establishing standards, measuring actual performance, comparing it with standards, and implementing corrective actions if needed. Effective control systems should be understandable, flexible, economical, and provide useful information to support decision-making.

Uploaded by

akiyaterefe40
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER EIGHT

SUB-TOPICS
♠Define controlling
♠Describe the process of controlling
♠Explain the importance of
controlling
♠Identify and describe the types of
controlling
Define controlling
֍Control is the process of monitoring, evaluating,
comparing performance to standards and taking
corrective action, if needed.
֍Controlling is the last management function and
it affects or is affected by the other managerial
functions.
֍Planning, organizing, staffing & directing must
be monitored to maintain their effectiveness &
efficiency.
Control process
1. Establishing Standards
♠Standards are the bench marks against
which performance is compared.
♠Standards can take a variety of forms
and be derived from a variety of sources.
For example, standards could take the form of
goals or could consist of professional
guidelines or legal or financial procedure.
2. Measuring Actual Performance

Once the task is completed, it is the job of


the manager to measure the performance
of the employees.

The manager will analyze the


performance of each employee and ask
them to submit their report of work.
3. Compare Actual with Standards

After the measurement of the actual report, a


comparison of measuring performance is made
between the actual performance and the pre-
decided standard performance and the
difference is calculated between both the
performances and a report is generated after the
analysis of the performance of all employees.
4. Taking corrective actions if required

When deviations from a standard are


meaningful gaps in performance, a manager
should take action.

If corrective action is appropriate but is not


taken, the control process becomes simply a
measurement exercise.
Techniques of control
Market control; an organization may use profits as the means
for evaluating the performance of a business unit.
Financial controls; focus on internal monetary values, largely
regarding revenues and expenses in the organization.
Budgetary control- Budgets used to specify amounts to be
expended for various activities or events. Budgets are
frequently stated in monetary terms, but they can take other
forms.
Financial statements –Two of the most commonly used are
balance sheets and profit and loss statements.
Effective control system
An effective control system should .
1. Be understandable.
2. Be flexible.
3. Be economical.
4. Be objective.
5. Recognize the importance of time element.
6. Provide useful and understandable information.
7. Be forward-looking.
8. Be selective.
9. Reflect the organization structure and needs.
10. Lead to corrective action.

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