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Understanding the Controlling Function

Controlling is the management function that involves ensuring employees' work performance aligns with organizational standards through monitoring, comparing, and correcting actions. It establishes performance standards and measures and reports actual performance, comparing it to standards. Corrective actions are then taken to address deviations from standards. Controlling is integrated with planning, as planning involves thorough forecasting and preparation of blueprints for future scenarios, while controlling monitors performance against those plans. Control methods include management control to ensure sufficient and profitable cash flow, and maintaining adequate working capital for daily operations.

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15 views8 pages

Understanding the Controlling Function

Controlling is the management function that involves ensuring employees' work performance aligns with organizational standards through monitoring, comparing, and correcting actions. It establishes performance standards and measures and reports actual performance, comparing it to standards. Corrective actions are then taken to address deviations from standards. Controlling is integrated with planning, as planning involves thorough forecasting and preparation of blueprints for future scenarios, while controlling monitors performance against those plans. Control methods include management control to ensure sufficient and profitable cash flow, and maintaining adequate working capital for daily operations.

Uploaded by

Twelve Forty-four
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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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CONTROLLING

( FIFTH MANAGEMENT FUNCTION )


OBJECTIVES:

 Discuss the nature of controlling


 Describe the link between planning and controlling
 Distinguish control methods and systems
CONTROLLING
- Management function that involves ensuring that the
work performance of the organization’s members are
alligned with the organization’s values and standards
through monitoring, comparing and correcting their
actions.

STANDARD
- Any established measure of extent quantity, quality or
value
Management Control
- Makes sure that the firm’s operating cash flow is
sufficient, efficient and profitable when invested.

Working Capital
- Must be adequate enough for daily operations such as
financing, inventories or maintaining an acceptable
capital structure
The Control Process:

• Establishing standards
- Means setting criteria for performance. Managers
must identify priority activities that have to be
controlled and determine how these activities must be
properly sequenced.
The Control Process:

• Measuring and reporting actual performance, and


comparing it with standards
- Is the monitoring of performance.
• Taking action
- Involves the correction of deviations from set
standards. This activity clearly shows the control
function of management
The Link Between Planning and Controlling

Control
- Is integrated planning
Planning
- Involves a thorough process which is essential to the
creation and refinement of a blueprint or its integration
with other plans that may combine forecasting of
developments in preparation for future scenarios
The Link Between Planning and Controlling

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