 Controlling consists of verifying whether everything occurs in

conformities with the plans adopted, instructions issued and

principles established.
 Controlling ensures that there is effective and efficient
utilization of organizational resources so as to achieve the
planned goals.
 Controlling measures the deviation of actual performance from
the standard performance, discovers the causes of such
deviations and helps in taking corrective actions
 According to Koontz and O’Donnell, “Managerial control
implies the measurement of accomplishments against the
standard and the corrections of deviations to assure
attainment of objectives according to plans.”
 According to George R. Terry, "Controlling is determining
what is being accomplished i.e., evaluating the performance
and if necessary, applying corrective measures so that the
performance takes place according to plans.
 FEATURES OF CONTROLLING FUNCTION:

 Following are the characteristics of controlling function of

management:
1. Controlling is an end function
2. Controlling is a pervasive function
3. Controlling is forward Looking
4. Involves measurement
5. Controlling is a dynamic process
6. Controlling is related with planning
1. To measure progress
2. To uncover deviations
3. To indicate corrective actions.
Steps in a control process:
1. Establishing standards
2. Measuring Performance
3. Comparing actual results against standards
4. Analysis of Deviation
5. Taking corrective action.
 Standards are the plans or the targets which have to be
achieved in the course of business function.
 They can also be called as the criterions for judging the
performance. Standards generally are classified into two-
 Measurable or tangible - Those standards which can be measured
and expressed are called as measurable standards. They can be
in form of cost, output, expenditure, time, profit, etc.
 Non-measurable or intangible- There are standards which cannot
be measured monetarily. For example- performance of a
manager, deviation of workers, their attitudes towards a concern.
These are called as intangible standards.
 Controlling becomes easy through establishment of these
standards because controlling is exercised on the basis of
these standards.
 The second major step in controlling is to measure the
performance.
 Finding out deviations becomes easy through measuring the
actual performance.
 Measurement of tangible standards is easy as it can be
expressed in units, cost, money terms, etc.
 Quantitative measurement becomes difficult when
performance of manager has to be measured.
 Performance of a manager cannot be measured in quantities.
It can be measured only by-
 Attitude of the workers,
 Their morale to work,
 The development in the attitudes regarding the physical
environment, and
 Their communication with the superiors.

 It is also sometimes done through various reports like weekly,

monthly, quarterly, yearly reports.
 Comparison of actual performance with the planned targets is
very important.
 Comparison will reveal the deviation between actual and desired
results.
 All deviations need o be brought to the notice of management.
 Extent of deviation means that the manager has to find out whether the deviation is
positive or negative or whether the actual performance is in conformity with the
planned performance.
 The managers have to exercise control by exception. He has to find out those
deviations which are critical and important for business.
 Minor deviations have to be ignored.
 Major deviations like replacement of machinery, appointment of workers, quality of raw
material, rate of profits, etc. should be looked upon consciously. Therefore it is said, “ If
a manager controls everything, he ends up controlling nothing.”
 For example, if stationery charges increase by a minor 5 to 10%, it can be called as a
minor deviation. On the other hand, if monthly production decreases continuously, it is
called as major deviation.
 Once the deviation is identified, a manager has to think about various cause which has
led to deviation. The causes can be-
 Erroneous planning,
 Co-ordination loosens,
 Implementation of plans is defective, and
 Supervision and communication is ineffective, etc.
 The final step in the control process is taking corrective
actions so that deviations may not occur again and the
objectives are achieved.
 Corrective actions may be-
a)Revision of standards
b)Change in the assignment of tasks
c) Training of employees
d)Improvements in the techniques of direction, etc.

 At this stage, the manager should avoid two types of

mistakes. First, taking corrective actions when no action is
required, and secondly, not taking actions when action is
required.
 The real test of a good control systems is whether right
action is taken at the right time.
RELATIONSHIP BETWEEN PLANNING AND
CONTROL:
According to Billy Goetz, ―Relationship between planning and
control can be summarized in the following points
1. Planning precedes controlling and controlling succeeds
planning.
2. Planning and controlling are inseparable functions of
management.
3. Activities are put on rails by planning and they are kept at
right place through controlling.
4. The process of planning and controlling works on Systems
Approach which is as follows :

Planning → Results → Corrective Action

Planning and controlling are integral parts of an organization as both

are important for smooth running of an enterprise.
5. Planning and controlling reinforce each other. Each drives the
other function of management.
1. Historical or Feedback Control
2. Concurrent Control
3. Feed-forward Control
 Feedback control evaluates performance after an activity has
been completed.
 It identifies deviations from planned results and suggests
corrective measures for future cycles. This type of control relies
on past data.
 Example:
 A company reviews its quarterly financial statements to determine
whether profit targets were achieved. If profits fall short,
managers analyse the reasons and adjust strategies for the next
quarter.
 Concurrent control operates while the activity is in progress.
 It focuses on real-time monitoring to ensure that operations stay
on track and problems are corrected immediately before they
escalate.
 Example:
 A supervisor on a production line checks the assembly process
as it happens. If a mistake is detected, the supervisor stops the
line and corrects the issue instantly to avoid defective output.
 Feed-forward control is preventive in nature.
 It anticipates potential problems before they occur by
evaluating inputs, resources, and conditions in advance.
 Its purpose is to avoid deviations entirely.
 Example:
 Before launching a new product, a firm analyses market
demand, supplier reliability, and potential risks. If a shortage of
a key raw material is predicted, the firm secures alternative
suppliers beforehand.