CONTROL
MEANING AND CONCEPT:
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
DEFINITION OF CONTROL:
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
NEED FOR CONTROL
(OBJECTIVES OF CONTROL)
1. To measure progress
2. To uncover deviations
3. To indicate corrective actions.
PROCESS OF CONTROL
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.
1. ESTABLISHING STANDARDS
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.
2. MEASUREMENT OF
PERFORMANCE-
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.
3. COMPARISON OF
ACTUAL AND STANDARD
PERFORMANCE-
Comparison of actual performance with the planned targets
is very important.
Comparison will reveal the deviation between actual and
desired results.
4. ANALYSIS OF DEVIATION:
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.
5. TAKING
CORRECTIVE/REMEDIAL
ACTIONS-
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.
TYPES OF CONTROL
1. Historical or Feedback Control
2. Concurrent Control
3. Feed-forward Control
FEEDBACK 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:
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.
FEEDFORWARD CONTROL:
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.