Scope of Control; Control ensures that there is effective and efficient utilization of organizational resources so as to achieve the plan goals. Control is a primary goal-oriented function of management in an organization. It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performing according to the plans and if not then taking corrective action. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.
What is the Scope of Control? 12 perfect Explanation.
Controlling is an important function of management which all the managers are requiring to perform. According to Brech,“Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.” The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.
For effective control, it is important to know what are the critical areas where control would exercise. The identification of these areas of control enhances the management to;
Delegate authority and fixing up of responsibility.
Reduce the burden of supervising each activity in detail, and.
Have a means of securing satisfactory results.
Though controls are needs in every area where performance and results directly and Vitally affect the survival and prosperity of the organization, these areas need to be specifically spelled out. What is Control and Organizational Factors? easy Explanation.
The following discussion points out the problems and methods of control in each major area.
In Policies:
Policies are formulating to govern the behavior and action of personnel in the organization. These may write or otherwise, policies are generally controlling through policy manuals, which are generally preparing by top management. Each individual in the organization is expecting to function according to policy manuals.
In Organization:
Organization charts and manuals are using to keep control over organization structure. Organization manuals attempt at solving organizational problems and conflicts, making long-range organizational planning possible, enabling rationalization of the organization structure, helping in proper designing and clarification of each part of the organization, and conducting a periodic check of facts about organization practice.
In Personnel:
Generally, the personnel manager or head of the personnel department, whatever his designation maybe, keeps control over personnel in the organization. Sometimes, a personnel committee is constituting to act as the ail instrument of control over key personnel.
In Wages and Salaries:
Control over wages and salaries are finishing by having a program of job evaluation, and wage and salary analysis. The functions are carrying on by personnel and industrial engineering departments. Often the wage and salary committee is constituting to provide help to these departments.
In Costs:
Control over costs is exercising by making a comparison between standard costs and actual costs. Standard costs are set in respect of different elements of costs. Cost control is also supplementing by a budgetary control system, which includes different types of budgets. Controller’s department provides information for setting standard costs, calculating actual costs, and pointing out differences between these two.
In Methods and Manpower:
Control over methods and manpower is keeping to ensure that each individual is working properly and timely. For this purpose, periodic analysis of the activities of each department is conducting. The functions perform, methods adopt, and time-consuming by every individual is studied to eliminate nonessential functions, methods, and time. Many organizations create separate department or section known as organization and methods’ to keep control over methods and manpower.
In Capital Expenditure:
Control over capital expenditure is exercising through the system of evaluation of projects, ranking of projects on the basis of their importance, generally on the basis of their earning capacity. A capital budget is preparing for the business as a whole. The budget committee or appropriation committee reviews the budget. For effective control over capital expenditure, there should be a plan to identify the realization of benefits from capital expenditure and to make comparison with anticipated results. Such a comparison is important in the sense that it serves as an important guide for future capital budgeting activities.
In-Service Departments:
Control over service departments is effecting either; 1) through budgetary control within Operating departments, or 2) through putting the limits upon the amount of service an individual department can ask, or 3) through authorizing the head of the service department to evaluate the request for service made by other departments and to use his discretion about the quantum of service to render to a particular department: Sometimes, a combination of these methods may use.
In-Line of Products:
A committee whose members are drawn from production, sales, and research departments exercise control over the line of products. The committee controls through studies about market needs. Efforts are making to simplify and rationalize the line of products.
In Research and Development:
Control over research and development is exercising in two ways: by providing a budget for research and development and by evaluating each project keeping in view savings, sales, or profit potentialities. Research and development is a highly technical activity are also controlling indirectly. Improving the ability and judgment of the research staff through training programs and other devices does this.
In Foreign Operations:
Foreign operations are controlling in the same way as domestic ones. The tools and techniques applied are the same. The only difference is that the chief executive of foreign operations has a relatively greater amount of authority.
In External Relations:
The public relations department regulates external relations. This department may prescribe certain measures to follow by other departments while dealing with external parties.
#Overall Control:
Control over each segment of the organization contributes to the overall organizational control. However, some special measures are devising to exercise overall control. This is done through budgetary control project profit and loss account and balance sheet. Integrating and coordinating budgets prepared by each segment prepare a master budget. The budget committee reviews such budget This budget acts as an instrument for overall control. Profit and loss account and balance sheet are also using to measure the overall results.
Organizational Control: Control can define narrowly as the process a manager takes to assure that actual performance conforms to the organization’s plan, or more broadly as anything that regulates the process or activity of an organization. We are going to study of Control and Organizational Factors. First, want to know what they are? Simply put, organizational control is the process of assigning, evaluating, and regulating resources on an ongoing basis to accomplish an organization’s goals. To successfully control an organization, managers need to not only know what the performance standards are but also figure out how to share that information with employees.
What is Control and Organizational Factors? easy Explanation.
The behavioral implications of control, as elaborated above do not mean that control should not be applied in the organization. In fact, control has many positive aspects, as discussed earlier. The basic necessity is that it should suit die participants to make it more effective.
From this point of view, it is imperative that various organizational phenomena should analyze, which affect the control system. Though there are many such organizational factors and people are engaged in finding out the answer to this basic question of how people can better control for organizational effectiveness, the main factors related directly to control are:
Organizational Rules and Procedures:
Most of the organizations prescribe some standing measures for providing guidelines for people’s actions in the organizations in the form of policies, rules, and procedures. While these elements provide guidelines to them, they, particularly rules and procedures, prescribe rigidity in action. Thus, they leave very little scope for freedom in action. These rules and procedures also take away initiative and generate alienation.
Many times, they may not be able to isolate or sense the factors, which have caused a. particular situation. Thus, there may be a tendency to put the blame on those who are not really responsible for a situation. Besides, the rules and procedures create more delay in action and consequently the result. Such a phenomenon is more frustrating to individuals in the organization.
Perception Formation:
The people’s perception is affecting by a number of factors, as discussed earlier. In organizational situation, it is affected by the action of management, and the type of relationship between management and employees. The perception of people towards control is a major factor in determining the response to it.
Thus, if the perception of people about the control attempt is based on sound organizational climate, mutual trust and belief, there is more likelihood of getting a favorable and better response from them. On the other hand, if it is based on general distrust, fear and suspicion, there is always the people resist a possibility that control attempt.
Organizational Communication:
The organization has to design a communication network for carrying the control, information both downward and upward. Through the downward communication, a superior sends the information about what a subordinate is expected to do; the upward communication is used to get control information from the subordinates, that is, what they have done. Besides, these channels also serve other purposes.
Thus, the organization depends to a large extent for exercising control through communication. If the communication system is not quite effective, it will affect the control system also, to that extent, in communicating what is expected from a subordinate and also how he is performing. Often communication blockade is a major source of confusion and frustration in the minds of the people and they resist control.
Motivational Dynamics:
The control is affecting by the motivational dynamics of people and how the organization is going to satisfy the various needs of the people. The motivational dynamics have a twofold role in control.
First, how the various attempts at control are in time with the needs of the people. Ideally speaking, a control system should focus adequately on the needs of the participants and must suit them. It means the control system should be tailor-made and no universal because people differ. Thus, all people cannot satisfy the same system.
Second, the organization itself provides motivation or, Demotivation to the people to work. Human beings, being gregarious, seek to remain in the organization.
Thus, many of his needs can satisfy by this phenomenon. However, since organization, as a Collectivity of people, has certain norms of behavior it becomes Demotivation for the people. If it is not in accordance with the people. Thus the organizational phenomenon of how people are motivating is a crucial factor in the control of the behavior of people in the organization.
The various factors discussed above suggest that. They actually decide the behavioral implications of control rather than the individual factors alone. Thus real implications may understand in terms of the interaction of individual and organizational factors. While many of the individual factors may analyze the lines suggested earlier in the previous part of the text. The organizational factors may analyze throughout the remaining portion of this part.
The behavioral implication of Control; The control system should make as fair and as meaningful as possible and must be clearly communicating to all employees. It will be easier for the employees to accept control if they have to participate in the formulation of the control system and process of implementation. Though control should aim at satisfying the needs of the members of the organization, they often take it otherwise. This may be either because of the adverse real impact of control on them or because of Misperception of the impact of control.
What is the behavioral implication of Control? Perfect Explanation.
Managers must recognize several behavioral implications in the process of control and its implementation. Although an effective control system should aid in employee motivation, it can also have negative effects on employee morale and performance. Thus, while designing the control system, it must keep in mind that almost everybody in the organization not only resents the idea of being controlling but also objects to being evaluated. It means the results of the control may not same as anticipated by those who are exercising control.
What are the Essentials of Effective Control System? The major behavioral problems of control can analyze by taking the nature of control, perception of those who are controlling, and action taken by them.
Nature or Control:
Control often puts pressure for engaging in desirable behavior by those who are subject to control. The basic question is: will they not behave in a desirable way if there is no control? Though opinions may differ on this question, often it is recognized that people engage in that behavior, which provides them satisfaction whether control or no control.
It means if the organizational processes are in tune with the needs of the organizational participants, they can perform well in the absence of control and not in the presence of control. Behavioral scientists have concluded that people try to self-actualize but the basic problem, which comes in the way, is providing by the organization itself. They are inherently self-motivating.
For example, McGregor believes that more people behave according to the assumptions of Theory Y as compared to Theory X. In such a case, if their behavior is controlled, it may be counter-productive for the organization. The results may be against organizational interests. Thus, the basic nature of control itself against the very basic nature of the people.
However, this is not true in all cases. Many people may still behave according to the assumptions of Theory X and they need rigid control, In fact, the best control system may be one which focuses attention on the individual needs also, as discussed earlier, otherwise, it will provide more behavioral problems and may be detrimental to the organization itself.
People or Perception:
Another behavioral implication of control is the perception of people who are controlling. Though perception may be that control is against the nature of people, it is further aggravated by the fact that people perceive it to be for benefit of the organization but against them. Thus perception may be right or otherwise, that control if brings a better result, is sharing by the organization alone whereas it may, be brought by the organizational members.
The control in most of the cases is using as a pressure tactic for increasing performance. This is true also because people may produce more if they are aware that their performance is being evaluated. However, increase performance is also determining by several other factors, most important or them being how it is sharing between the organization and its members.
Thus, if they have a positive perception of this aspect also, they will engage in higher performance. In an alternative case, they will take certain actions to thwart the control action. There is another implication of people’s perception of control. The manager may develop some plan for control, but there are many un-planning controls also necessitated by the organizational requirements. Thus un-plan control is also the part of the organizational control.
It is this un-plan control that has more serious repercussion and is more counter-productive. The participants may feel that it is due to improper planning on the part of management. Thus they are controlled not because of their own shortcomings but for the shortcomings of others. Naturally, this may be more serious for those who are controlling.
Actions by Participants:
Participants in most of the cases resist control attempt. In the first case, people may try to overcome the pressure from control through fanning group. People can stand only to a certain amount of pressure. After this point is pass, it becomes intolerable to them and they will try to find out the alternatives.
One of the alternatives is the formation of the group if people cannot reduce the pressure individually. The group helps them to absorb much of the pressure and thus relieves the individual personality. It gets rid of the tension generated by the control and people feel more secure by belonging to a group, which can counteract the pressure.
They will try to escape from the purview of control and may take several actions:
Control may try to bring behavior which is satisfying to them but not necessarily satisfying to the organization.
They may engage in a behavior which may appear to be in conformity with organizational requirements but actually, it is not, and.
If these are not possible they may try to engage in behavior as required by the organization.
Now the question is:
Does the group disappear if the control pressure is off?
The answer is generally in negative because, by the time, control pressure is oft, people have socialized and identify with a particular group and the group has become attractive to them in more than one respect. Thus, they are likely to continue to be the members of the group even after the control pressure is off. Another alternative of overcoming the pressure of control is that an individual solves it at his own level.
This happens more so if control pressure affects only a few individuals. In such cases, the individuals may engage in a behavior, which on the surface seems to satisfy organizational needs but actually, it is not so. In such cases, they will try to camouflage the information meant for control like providing wrong information or coming in time at the work-place but not quite engaging in meaningful behavior or looking busy but without doing anything. This situation is also quite counterproductive.
If the individuals are not able to go for any of these alternatives. They will fall in line with organizational control attempt. This situation may, however, not take as an ideal because it may be counter-productive in the logs run; People may develop alienation to the work and to the organization which may have an adverse effect on their efficiency. Organization in such cases may lose, not only the efficiency of their members but them also.
Behavioral Implications in the Process of Control:
Some of the behavioral implications of control are as follows:
Controls may influence the generation of invalid and inaccurate information. For example, if the top management habitually reduces budget requests when reviewing them (a control activity), then the lower management, when proposing a new budget or a new project may overstate the cost of resources needed. Similarly, managers may set objectives lower than what is attainable so that higher output will look better at performance appraisal time.
Controls can resent by employees if they have no control over the situation. For example, if a professor’s performance is appraising over the number of publication of books and research articles. But he is not affording the freedom of time to do so because of heavy teaching loads and excessive committee work. Then it can result in frustration which may be detrimental to the entire control system. Similarly, the manager will become highly frustrated. If his performance evaluation is based upon profits achieved by his department. But he does not have the authority and control to make operational changes such as hiring and firing of workers.
The control system must synchronize to create a balance among all affecting and inter-connected variables. The standards should complement each other and not contradict each other. For example, a control system which emphasizes increased sales as well as a reduction in advertising expenditure at the same time. May seem contradictory to the marketing manager and thus may be frustrating for him.
Essentials of Effective Control System; Control is necessary for every organization to ensure that everything is going properly. Every manager, therefore, should have an effective and adequate control system to assist him in making sure that events conform to plans. However, control does not work automatically, but it requires a certain design. While the basic, principles involved in designing a control system in organizations may be universal; the actual system in an organization requires some specific design.
Here are explained; the Essentials of Effective Control System.
Controls at every level focus on inputs, processes, and outputs. Control is a continuous process. It is an integral part of management. It’s a concern with monitoring and evaluating performance so as to obtain the best results from managerial efforts. It ensures work accomplishment according to plans. It’s also the process of guiding and supervising the events in the organization. What is the Importance of Controlling? with their Steps.
In this tailoring of the Control system, there are certain requirements, which should keep in mind.
Reflection Organizational Needs:
All control systems and techniques should reflect the jobs they are to perform. There may be several control techniques, which have general applicability, such as, budgeting, costing, etc. However, it should not assume that these might utilize in all situations. The managers should choose an appropriate tool for control, which helps him in controlling actions according to plans.
Forward-Looking:
Control should be forward-looking. Though many of the controls are instantaneous, they must focus attention as to how future actions can be confirmed with plans. In fact, the control system should be such that it provides aid in the planning process. This is done in two ways: it draws situations where new planning is needed, and it provides some of the data upon which plans can base.
Promptness in Reporting Deviation:
The success of a thermostat lies in the fact that it points the deviation promptly and takes corrective actions immediately. Similarly, an ideal control system detects deviations promptly arid informs the manager concerned to take timely actions. This is done by designing good appraisal and information systems.
Pointing out Exceptions at Critical Points:
Control should point exception at critical points and suggest whether an action is to take for deviations or not Some deviations in the organizations have any impact while others, though very little in quantity may have great significance. Thus, the control system should provide information for critical point control and control on exception.
The critical point control stresses that effective control requires attention to those factors critical to appraising performance against an individual plan. The control on exception requires that a manager should take corrective action when there is an exceptional deviation. The more a manager concentrates his control efforts on exceptions, the more efficient will be the results of his control.
Objectives:
The control should be objective, definite, and determinable in a clear and positive way. The standards of measurement should quantify as far as possible. If they are not quantifiable, such as training effectiveness, etc. they must be determinable and verifiable. If the performance standard and measurement is not easily determinable, many subjective elements enter into the process, which catches the controller and controlled on wrong tooting.
Flexible:
Control system should be flexible so that it remains workable in the case of changed plans, unforeseen circumstances, or outright failures. As Geotz has remarked, a control system should report such failures and should contain sufficient elements of flexibility to maintain managerial control of operations despite such failures. Having alternative plans for various probable situations can provide much flexibility in control. In fact, flexible control is normally achieving through flexible plans.
Economical:
Control should be economical and must be worth its costs. The economy is relative since the benefits vary with the importance of the activity the size of the operation, the expense that might incur in the absence of control and the contribution the control system can make. The economy of a control system will depend a great deal on the manager’s selecting for control only critical factors in areas important to him.
If tailored to the job and the size of the enterprise, control will be economical. A large-sized organization can afford highly complicated techniques, sophisticated tools of control and a more elaborate system of control, but a small-sized organization cannot afford these because of the cost factor.
Simple:
Control system must be simple and understandable so that all managers can use it effectively. Control techniques which are complicated such as complex mathematical formulae, charts, graphs, advanced statistical methods, and other techniques fail to communicate the meaning of their control data to the managers who use them. Effective control requires consistency with the position, operational responsibility, ability to understand, and needs of the individuals concerned.
Motivating:
Control system should motivate both controller and controlled. While the planning and control are necessary for economical operations, researches in human relations show that planning and control are, more often than not, antagonistic to good human relations.
Sometimes, they may even tend to deprive the people in the organizations one of man’s basic needs – a sense of powerful and worthwhile accomplishment The design of control system should be such that aims at motivating people by fulfilling their needs.
Reflection Organizational Pattern:
The control should reflect organizational pattern by focusing attention on positions in organization structure through which deviations are correct. Organization structure, a principal vehicle for coordinating the work of people, is also a major means of maintaining control.
Thus, in every area of control, it is not enough to know that things are going wrong unless it is known wherein the organization structure the deviations are occurring. This enables managers to fix up the responsibility and to take corrective actions.
Importance of Controlling; Controlling is the process of assuring the performance as per standard. It is the comparison and verification process of the actual performance with the standard performance. Controlling is both an executive process and, from the point of view of the organizations of the system, a result. As an executive process, each manager has to perform control function in the organization. It is true that according to the level of a manager in the organization, the nature, scope, and limit of his control function may different as compare to a manager at another level.
What is the Importance of Controlling? with their Steps
Controlling is an important and indispensable part of management. Proper control makes smoothness in the working of the organization. Controlling helps in checking mistakes and tells us how new challenges can meet or face. Without, proper mechanism of control, the management process will be incomplete. Control keeps the subordinate under check and brings discipline among them. It reduces the chances of mistakes that may repeat in the future by providing preventive steps.
Importance of Controlling:
Organizations try to achieve their objectives through various actions. From this point of view, all the objectives lead to the achievement of organizational objectives. However, the organizations must also monitor whether they are achieving their objectives or-not.
Thus control is an integrated action of an organization or manager. It offers help in the following directions;
Operations Adjustments:
First, Importance of Controlling; A control system acts as an adjustment in organizational operations. Every organization has certain objectives to achieve which becomes the basis for control. It is not only sufficient to have objectives but also to ensure that these objectives are achieving by various functions.
Control provides this clue by finding out whether plans are observing and suitable progress towards the objectives is make, and acting, if necessary, to correct any deviation. This may result in taking actions more suitable for the achievement of organizational objectives.
Verification of Policy:
Second, Importance of Controlling; Various policies on the organization generate the need for control. For organizational functioning, managers set certain policies and other planning elements, which later become the basis and reason for control. They become the basis in the sense that organizational performance is reviewed in these lights. They also become the reason for control because, through these, an organization tries that its various individuals adhere to such a framework. In this process, the organization and its management can verify the quality of various policies.
Responsibility of Managerial:
Third, Importance of Controlling; In every organization, managerial responsibility is created through the assignment of activities to various individuals. This process starts at the top level and goes to the lower levels. However, when a manager assigns some activities to his subordinates, he remains responsible for that portion of activities for their ultimate performance.
It is quite natural that when a person is responsible for the performance of his subordinates, he must exercise some control over them. Thus, the control is required because of the very basic nature of the organization itself. In large organizations, many individuals contribute to organizational objectives.
For efficient performance, they are arranged in a hierarchy, forming a superior-subordinate relationship throughout the organization. Since each superior is responsible for the activities of his subordinates also, the control flows throughout the organization, beginning at the top level, the only difference being nature and scope of control.
The pressure of Psychological:
Forth, Importance of Controlling; Control process puts psychological pressure on the individuals for better performance. The performance of the individuals is evaluating in the light of targets set for them. A person is likely to put better performance if he is aware that his performance will evaluate. He may feel pressure to achieve the results according to the standards fixed for him.
This is further complemented by the reward and punishment based on the performance. Since the performance measurement is one of the basic elements of the control process, it ensures that every person in the organization contributes to his maximum ability.
Coordination inaction:
Fifth, Importance of Controlling; Though coordination is the essence of management and is achieving through the proper performance of all managerial functions, control affects this aspect significantly. Control systems are designed in such a way that they focus not only on the operating responsibility of a manager but also on his ultimate responsibility.
This forces a manager to coordinate the activities of his subordinates in such a way that each of them contributes positively towards the objectives of the superior. Since this follows throughout the organization, coordination is achieved in the organization as a whole.
Efficiency and Effectiveness in Organizational:
Final, Importance of Controlling; Proper control ensures organizational efficiency and effectiveness. Various factors of control, namely, making managers responsible, motivating them for higher performance, and achieving coordination in their performance, control ensures that the organization works efficiently.
The organization also moves towards effectiveness because of the control system. The organization is effective if it is able to achieve its objectives. Since control focuses on the achievement of organizational objectives, it necessarily leads to organizational effectiveness.
Looking into the various roles that control system plays in the organization, the management should devise a control system which effectively meets the demands of the organization: The manager can do this if he is aware of the essential features of the effective control system.
Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. Its importance becomes apparent when we find that it is needed in all the functions of management. Controlling checks mistakes and tells us how new challenges can meet or face. The success of the organization thus hinges on the effective controlling.
The various steps in controlling may broadly classify into four parts:
Establishment of control standards.
Measurement of performance.
Comparison between performance and standards and communication, and.
Correction of deviations from standards.
Now, explain each;
Establishment of Control Standards:
Every function in the organizations begins with plans, which are goals, objectives, or targets to achieve. In the light of these, standards are established which are criteria against which actual results are measured. For setting standards for control purposes, it is important to identify clearly and precisely the results which are desiring. Precision in the statement of these standards is important In many areas, great precision is possible.
However, in some areas, standards are less precise. Standards may be precise if they are set in quantities – physical, such as the volume of products, man-hour or monetary, such as costs, revenues, and investment. They may also be in other qualitative terms, which measure performance. After setting the standards, it is also important to decide about the level of achievement or performance, which will regard as good or satisfactory. There are several characteristics of a particular work that determine good performance.
Some Operations:
Important characteristics, which should consider while determining any level of performance as good for some operations are;
Output.
Expense, and.
Resources.
Expense refers to services or functions, which may express in quantity, for achieving a particular level of output Resources refer to capital expenditure, human resources, etc. After identifying these characteristics the desired level of each character is determined. The desired level of performance should be reasonable and feasible. The level should have some amount of flexibility also and should state in terms of range – maximum and minimum.
Control standards are most effective when they are related to the performance of a specific individual because a particular individual can make responsible for specific results. However, sometimes accountability for the desired result is not so simply assigned; for example, the decision regarding investment in inventory is affected by purchase, rate of production and sales. In such a situation, where no one person is accountable for the levels of inventories, standards may be set for each step that is performing by a man.
Measurement of Performance:
The second major step in the control process is the measurement of performance. The step involves measuring the performance in respect of work in terms of control standards. The presence of standards implies a corresponding ability to observe and comprehend the nature of existing conditions and to ascertain the degree of control is achieving.
The measurement of performance against standards should be on a future basis, so that deviations may detect in advance of their actual occurrence and avoid by appropriate actions: Appraisal of actual or expect performance becomes an easy task, if standards are properly determining and methods of measuring performance which can express in physical and monetary terms, such as production units, sales volume, profits, etc. can be easily and precisely measurable.
The performance, which is qualitative and intangible, such as human relations, employee morale, etc., cannot measure precisely. For such purposes, techniques like psychological tests and opinion surveys may apply. Such techniques draw heavily upon intuitive judgment and experience, and these tools are far from exact. According to Peter Drucker, it is very much desirable to have clear and common measurements in all key areas of business. It is not necessary that measurements are rigidly quantitative.
In his opinion, for measuring tangible and intangible performance, the measurement must be;
Clear, simple, and rational.
Relevant.
Direct attention and efforts, and.
Reliable, self-announcing, and understandable without complicated interpretation or philosophical discussions.
Comparing Actual, and Standard Performance:
When adequate standards are developing and actual performance is measuring accurately, any variation will clearly reveal. Management may have information relating to work performance, data, charts, graphs, and written reports, besides personal observation to keep itself informed about performance in different segments of the organization.
Such performance is comparing with the standard one to find out whether the various segments and individuals of the organization are progressing in the right direction. When the standards are achieving, no further managerial action is necessary and the control process is complete. However, standards may not achieve in all cases and the extent of variations may differ from case to case.
The third major step in the control process is the comparison of actual and standard performance.
It involves two steps:
Finding out the extent of deviations, and.
Identifying the causes of such deviations.
Naturally, management is requiring to determine whether strict compliance with standards is requiring or there should be a permissible limit of variation. In fact, there cannot be any uniform practice for determining such variations. Such variations depend upon the type of activity. For example, a very minute variation in engineering products may be significant than a wide variation in other activities.
When the deviation between standard and actual performance is beyond the prescribed limit, an analysis is making of the causes of such deviations. For controlling and planning purposes, ascertaining the causes of variations along with computation of variations is important because such analysis helps management in taking up proper control action.
The analysis will pinpoint the causes, which are controllable by the person responsible. In such a case, the person concerned will take necessary corrective action. However, if the variation is causing by uncontrollable factors, the person concern cannot hold responsible and he cannot take any action. Measurement of performance, analysis of deviations and their causes may be of no use unless these are communicating to the person who can take corrective action.
In addition:
Other people who may interest in control reports are;
Executives engaged in formulating new plans, and.
Staff personnel who are expecting to be familiar with control information for giving any advice about the activity under control when approaching.
Such communication is presenting generally in the form of a report showing performance standard, actual performance, deviations between those two tolerance limits, and causes for deviations. As soon as possible, reports containing control information should be sent to the person whose performance is measure and control.
The underlying philosophy is that the person who is responsible for a job can have a better influence on final results by his own action. A summary of the control report should give to the superior concerned because the person on the job may either need the help of his superior in improving the performance or may need a warning for his failure.
Correction of Deviations:
This is the last step in the control process, which requires that actions should take to maintain the desired degree of control in the system or operation. An organization is not a self-regulating system such as thermostat which operates in a state of equilibrium put there by engineering design. In a business organization, this type of automatic control cannot establish because the state of affairs that exists is the result of so many factors in the total environment. Thus, some additional actions are requiring to maintain control.
Such control action may be;
Review of plans and goals and change therein on the basis of such review.
Change in the assignment of tasks.
Different in existing techniques of direction.
Change in organization structure; provision for new facilities, etc.
In fact, correction of deviation is the step in the management control process, which may involve either all or some of the managerial functions. Due to this, many persons hold the view that correcting deviations is not a step in. the control process. It is the stage where other managerial functions are performing. Koontz and O’Donnell have emphasized that the overlap of control function with the other merely demonstrates the unity of the manager’s job. It shows the managing process to be an integrated system.
Here are explained; The relationship of Controlling with other Functions of Management.
This reflects how control is closely related to other functions of management. In fact, managing process is an integrated system and all managerial functions are interrelated and interdependent. When control exists in the organization, people know: what targets they are striving for, how they are doing in relation to the targets, and what changes are needed to keep their performance at a satisfactory level.
The relationship of controlling with major managerial functions can describe as follows:
Planning:
Planning is the basis for control in the sense that it provides the entire spectrum on which control function is based. In fact, these two terms are often using interchangeably in the designation of the department, which carries production planning, scheduling, and routing. It emphasizes that there is a plan, which directs the behavior and activities in the organization.
Control measures this behavior and activities and suggests measures to remove deviation if any. Control further implies the existence of certain goals and standards. The planning process provides these goals. Control is the result of particular plans, goals, or policies. Thus, planning offers and affects control. There is a reciprocal relationship between planning and control.
Thus various elements of planning provide what is intended and expected and the means by which the goals are achieving. They provide a means for reporting back the progress made against the goals, and a general framework for new decisions and actions in an integrated pattern. Properly conceived plan become important elements in implementing effective control.
Action:
Action as the Essence, Control basically emphasizes what actions can take to correct the deviation that may be found between standards and actual results. The whole exercise of the managerial process is taken to arrive at organizational objectives set by the planning process.
For this purpose, actions and further actions are necessary; each time there may be correction and change in the actions depending upon the information provided by control procedure. Though it is not necessary that each time a corrective action is taking but control ensures the desirability of a particular action.
This is important for organizational effectiveness. Thus, in a real sense, the control means action to correct a condition found to be in error or action to prevent such a condition from arising and is never achieve without having acted as an essential step.
Delegation:
Delegation is the key for control to take place because control action can be taken only by the managers who are responsible for performance but who have the authority to get the things done. A manager in the organization gets authority through delegation and red legation. It does not make sense to make someone responsible for achieving results without delegating him adequate authority.
In the absence of adequate authority, a manager is unlikely to take effective steps for correcting the various deviations located in the process of analysis. Taking of corrective actions may see in the context of controllability of a factor affecting the deviation or non-achievement of organizational objectives. Some of these factors are controllable and some are uncontrollable.
A controllable factor is one, which can control by executive action, while the uncontrollable factors lie outside his jurisdiction. A manager’s action is likely to be more effective if more factors are controllable by him. He can have better controllability if he has been authorizing to take decisions on various matters concerning him and affecting his action. Tile best policy of delegation is the matching of responsibility and authority.
It suggests that a manager must have corresponding authority as compared to his responsibility. He has to control the operations, which are exercising by taking action. And, action may take within the limit of the authority. So the only person who can directly control activities is the one who is directly responsible for them. This is the basic principle for effective organizations.
Information:
Information as of the Guide, Control action is guiding by adequate information from beginning to the end. Management information and management control systems are closely interrelating; the information system is designing on the basis of the control system. Every manager in the organization must have adequate information about his performance, standards, and how he is contributing to the achievement of organizational objectives.
There must be a system of information tailor to the specific management needs at every level. Both in terms of adequacy and timeliness. Control system ensures that every manager gets adequate information. The criterion for adequacy of information for a manager is his responsibility and authority that is in the context of his responsibility and authority. What type of information a manager needs.
This can determine on the basis of careful analysis of the manager’s functions. If the manager is not using any information for taking a certain action. The information may mean for informing him only and not falling within his information requirement.
Thus, an effective control system ensures the flow of information. That is requiring by an executive, nothing more or less. There is another aspect of information for control and other function, that is, the timeliness of the information. Ideally speaking, the manager should supply the information when he needs it for taking action. For correcting the deviation, timely action is requiring by the manager concerned.
For this purpose, he must have the information at the proper time and covering the functioning of a period, which is subject to control. The control system functions effectively on the basis of the information, which is supplying in the organization. However, the information is using as a guide and on this basis, a manager what action can take.
Controlling is one of the managerial tasks, such as planning, organizing, staffing and directing. Before studying this article Content you will learn about what is it? – 1) Meaning of Controlling, 2) Definition of Controlling, 3) Importance of Controlling, and 5) Limitations of Controlling. Also, The Importance of Directing, with Aspects or Elements! each one explains it, Controlling: Meaning, Definition, Importance, and Limitations!
Learn, Explain each one, Controlling: Meaning, Definition, Importance, and Limitations!
These Common questions are very asked by readers:
What is the Meaning of Controlling?
Explain the Definition of Controlling by different authors?
What is the Importance of Controlling?
How to explain the Limitations of Controlling?
#Meaning of Controlling:
Controlling is an important function of management which all the managers are required to perform. In order to contribute towards the achievement of organizational objectives, a manager is required to exercise effective control over the activities of his subordinates.
Thus, control can define as a managerial function to ensure that activities in an organization are performed according to the plans. Control also ensures the efficient and effective use of organizational resources for achieving the goals. Hence, it is a goal-oriented function.
Often, controlling and management control are considering the same. However, there is a vast difference between the two. Control is one of the managerial functions while management control can define as a process which managers follow to perform the control function. Management control refers to the set of predetermined standards, comparing actual performance with these standards and, if required, taking corrective actions to ensure the achievement of organizational goals.
#Definition of Controlling:
The following definitions below are;
According to Koontz And O’Donnell as;
“Managerial control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.”
According to Dale Henning as;
“Control is the process of bringing about conformity of performance with planned action.”
Controlling function is performing in all types of organizations whether commercial or non-commercial and at all levels i.e. top, middle and supervisory levels of management. Thus, it is a pervasive function. Control should not be considered as the last function of the management.
The controlling function compares the actual performance with predetermined standards, finds out deviation and attempts to take corrective measures. Eventually, this process helps in the formulation of future plans too. Thus, the control function helps in bringing the management cycle back to planning.
#Importance of Controlling:
The importance of the controlling function in an organization is as follows:
Accomplishing Organisational Goals:
Control helps in comparing the actual performance with the predetermined standards, finding out deviation and taking corrective measures to ensure that the activities are performing according to plans. Thus, it helps in achieving organizational goals.
Judging Accuracy of Standards:
An efficient control system helps in judging the accuracy of standards. It further helps in reviewing & revising the standards according to the changes in the organization and the environment.
Making Efficient Use of Resources:
Control checks the working of employees at each and every stage of operations. Hence, it ensures effective and efficient use of all resources in an organization with minimum wastage or spoilage.
Improving Employee Motivation:
Employees know the standards against which their performance will judge. Systematic evaluation of performance and consequent rewards in the form of increment, bonus, promotion, etc. motivate the employees to put in their best efforts.
Ensuring Order and Discipline:
Control ensures a close check on the activities of the employees. Hence, it helps in reducing the dishonest behavior of the employees and in creating order and discipline in an organization.
Facilitating Coordination in Action:
Control helps in providing a common direction to all the activities of different departments and efforts of individuals for attaining the organizational objectives.
#Limitations of Controlling:
The defects or limitations of controlling are as following:
Difficulty in Setting Quantitative Standards:
It becomes very difficult to compare the actual performance with the predetermined standards if these standards are not expressing in quantitative terms. This is especially so in areas of job satisfaction, human behavior, and employee morale.
No Control on External Factors:
An organization fails to have control of external factors like technological changes, competition, government policies, changes in the taste of consumers, etc.
Resistance from Employees:
Often employees resist the control systems since they consider them as curbs on their freedom. For example, surveillance through closed-circuit television (CCTV).
Costly Affair:
Control involves a lot of expenditure, time and effort, thus it is a costly affair. Managers are required to ensure that the cost involved in installing and operating a control system should not be more than the benefits expected from it. Similar Content of Articles: Direction: Meaning, Definition, Nature, and Importance!
Control is any process that guides activity towards some predetermined goals. Process of Controlling along with Benefits and Exception of Management. Thus control can apply in any field such as price control, distribution control, pollution control, etc. However, control as an element of management process can define as the process of analyzing whether actions are taking as plan and taking corrective actions to make these to conform to planning.
Here are explain; What is the Process of Controlling?
Controlling as a management function involves the following steps;
Establishment of standards:
Standards are the plans or the targets which have to achieve in the course of business function. They can also call the criterions for judging the performance. Standards generally are classifying into two:
Measurable or tangible: Those standards which can measure and express are called as measurable standards. They can be in the form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible: There are standards which cannot measure 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 an establishment of these standards because controlling is exercised based on these standards; you will be reading Process of Controlling.
Measurement of performance:
The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as they can express in units, cost, money terms, etc. Quantitative measurement becomes difficult when the performance of the manager has to measure. The performance of a manager cannot measure in quantities.
It can measure only by;
An 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; keep reading Process of Controlling.
Comparison of actual and standard performance:
Comparison of actual performance with the planned targets is very important. The deviation can define as the gap between actual performance and the planned targets. The manager has to find out two things here- the extent of deviation and cause of the deviation. An 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 the business. Minor deviations have to ignore. Major deviations like the replacement of machinery, an appointment of workers, quality of raw material, the rate of profits, etc. should look 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 call as a minor deviation. On the other hand, if monthly production decreases continuously, it’s called the major deviation.
Once the deviation is identifying, a manager has to think about the various cause which has led to a deviation.
The causes can be;
Erroneous planning,
Co-ordination loosens,
Implementation of plans is defective, and
Supervision and communication are ineffective, etc.
Taking remedial actions:
Once the causes and extent of deviation are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives here;
Taking corrective measures for deviations which have occurred; and
After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow-up is an important step because it is only through taking corrective measures, a manager can exercise control.
An exception of Management and Controlling:
One of the most important ways of tailoring controls for efficiency and effectiveness is to make sure that they are designed to point out exception. In other words, by concentrating on exceptions from planned performance, controls based on the time-honored exception principles allow managers to detect those places: where their attention’s require and should give.
This implies the use of management by exception particularly in controlling aspect. Management by exception is a system of identification and communication that signals to the manager when his attention’s need. From this point of view, management by exception can use in other management processes also though its primary focus revolves around controlling.
Their ingredients:
Management by exception has six basic ingredients:
Measurement assign values to past and present performances. This is necessary because, without a measurement of some kind, it would be impossible to identify an exception.
Projection analyses those measurements that are meaningful to organizational, objectives and extends them into future expectations.
Selection involves the criteria which management will use to follow progress towards organizational objectives.
Observation stage of management by exception involves the measurement of current performance so that managers are aware of the current state of affairs in the organization.
Comparison stage makes a comparison of actual and planned performance and identifies the exceptions that require attention and reports the variances to management.
Decision-making prescribes the action that must take in order to bring performance back into control or to adjust expectations to reflect changing conditions or to exploit the opportunity.
Thus it can observe that management by exception is inseparable from other management essentials in many ways. However, the major difference lies in the fact that the superior’s attention’s draw only in the case of exceptional differences between planned performance and actual performance. In other cases, the subordinate manager takes decisions. However, what is-exceptional requires the completion of the whole process.
What is Benefits or Management by exception?
There are various areas where percepts of management by exception are using such as statistical control of product quality, economic order quantities and order points for control of inventories and supplies, break-even points for determining operating, levels, trends in ratios of indirect to direct labour used in apportioning overhead, attitude surveys for gauging employee morale, etc.
Important Points:
The use of management by exception is prevalent because of the following factors:
Management by exception saves executives’ time because they apply themselves to fewer important problems. Other details of the problems are left to subordinates.
It concentrates executives’ efforts on major problems. Instead of spreading managerial attention across all sorts of problems, it is placing selectively where and when they need. Thus it ensures better utilization’ of managerial talents.
It facilitates better delegation of authority, increases the span of management and consequently provides better opportunities for self-motivated personnel in the organization. It lessens the frequency of decisions at the higher levels of management, which can concentrate on strategic management rather than engaging themselves in operational management.
Management by exception makes better use of knowledge of trends, history; and available business data. It forces managers to review past history and to study related business data because these are the foundations upon which standards are deriving and from which exception’s note.
It identifies crises and critical problems and thus avoids uninformed, impulsive pushing of the panic button. They help in the identification of crises because the moment any exceptional deviation occurs, the attention of higher-level manager’s draw. In this way, it also alerts management to opportunities as well as difficulties.
Management by exception provides qualitative and quantitative yardsticks for judging situations and people. Thus it helps in performance appraisal by providing more objective criteria and provides better motivation to people in the organization.
Features of Controlling Functions; Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. On the other hand, management control means the process to be adopted in order to complete the function of controlling.
Here are explain; What are the Features of Controlling Functions?
Following are the characteristics of controlling functions of management
Controlling is an end function: A function which comes once the performances are made in-Conformities with plans.
It is a pervasive function: which means it is performed by managers at all levels and in all type of concerns.
Controlling is forward-looking: because effective control is not possible without past being controlled. Control always look to the future so that follow-up can make whenever to require.
Controlling is a dynamic process: since controlling requires taking reviewal methods, changes have to be made wherever possible.
It is related to planning: Planning and Controlling are two inseparable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds in planning.
Controlling has got two basic Process of Controlling:
Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Control 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.
Lets reading Definitions about Controlling;According to Brech,
“Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensuring adequate progress and also recording such experience as is gained as a contribution to possible future needs.”
According to Donnell,
“Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on the right course.”
According to Henry Fayol,
“Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles”.
Important Features of Controlling:
Features of controlling could describe in the following analytical manner:
The unique feature of controlling, and.
Other features of controlling.
Now, explain each;
Unique Feature of Controlling:
The unique feature of control is that it is the “central-tendency point” in the performance of managerial functions i.e. a point where all other managerial functions come together and unite with one another. This is so because, while contemplating corrective action, sometimes it might be necessary to modify plans or effect changes in the organizational setting. At some other times, changes in the staffing procedures and practices might be thought fit by management for remedial reasons.
While at some junctures, management might plan to effect changes in the directing techniques of leadership, supervision or motivation, to bring performance on the right track. That is to say, that the remedial action comprised in the controlling process might embrace one or more managerial functions. Hence, controlling is designated as the central tendency point, in management theory.
Other Features of Controlling:
Some important basic features of controlling could state as under;
Controlling makes for a bridge between the standards of performance and their realistic attainment.
Planning is the basis of controlling; in as much as, the standards of performance are laid down in plans.
Controlling is a pervasive management exercise. All managers, at different levels in the management hierarchy, perform this function, in relation to the work done by subordinates under their charge-ship.
As controlling is the last managerial function, it is true to assert that it gives a finishing or final touch to the managerial job, at a particular point of time.
Controlling is based on information feedback i.e. on the reports on actual performance done by operators. In specific terms, it could say that information is the guide to controlling; as without information feedback made available to management, analysis of the causes of deviations and undertaking remedial action are not possible.
Action is the soul of controlling. In fact, controlling would be a futile activity; if after analyzing deviations – suitable remedial action is not undertaking by management, to bring performance, in conformity with plan standards.
Controlling is a continuous managerial exercise. It has to undertake on a regular and continuous basis, throughout the currency of the organizational operational life.
The significances of the controlling function in an organization are as follows:
Accomplishing Organisational Goals: Controlling helps in comparing the actual performance with the predetermined standards, finding out deviation and taking corrective measures to ensure that the activities are performing according to plans. Thus, it helps in achieving organizational goals.
Judging Accuracy of Standards: An efficient control system helps in judging the accuracy of standards. It further helps in reviewing & revising the standards according to the changes in the organization and the environment.
Improving Employee Motivation: Employees know the standards against which their performance will be judged. Systematic evaluation of performance and consequent rewards in the form of increment, bonus, promotion, etc. motivate the employees to put in their best efforts.
Boundaries of Controlling:
The defects or boundaries of controlling are as following:
Difficulty in Setting Quantitative Standards: It becomes very difficult to compare the actual performance with the predetermined standards if these standards are not expressing in quantitative terms. This is especially so in areas of job satisfaction, human behavior and employee morale.
No Control on External Factors: An organization fails to have control of external factors like technological changes, competition, government policies, changes in the taste of consumers, etc.
Resistance from Employees: Often employees resist the control systems since they consider them as curbs on their freedom. For example, surveillance through CCTV (closed-circuit television).
What is Controlling?Introduction; Controlling is the last step of the management process but plays a crucial role without which the whole management process is incomplete. It can define as a function through which the actual and desired output are measuring. All organizations, business or non-business, face the necessity of coping with, problems of control. The relationship of Controlling with other Functions of Management.
Here are explain; What is Controlling? Introduction, Meaning, and Definition.
Like other managerial functions, the need for control arises to maximize the use of scarce resources and to achieve purposeful behavior of organization members. In the planning stage, managers decide how the resources would utilize to achieve organizational objectives; at the controlling stage; managers try to visualize whether resources are utilizing in the same way as planned.
Thus control completes the whole sequence of the management process. If the actual output differs from the desired output, the deviations are altogether removing or minimizing. There are basically two types of control mechanisms, viz. pro-active and reactive. The pro-active mechanism tries to predict future hurdles and solves them then and there. The reactive approach tries to rectify the damage done to prevent any similar loss in the future.
Definition of Controlling:
Control is any process that guides activity towards some predetermined goals. Thus control can apply in any field such as price control, distribution control, pollution control, etc. However, control as an element of management process can define as the process of analyzing whether actions are being taken as planned and taking corrective actions to make these to conform to planning. Thus control process tries to find out deviations between planned performance and actual performance and to suggest corrective actions wherever these are needed.
For example,
According to Henry Fayol,
“Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles.”
Terry has defined control as follows;
“Controlling is determining what is being accomplished, that is evaluating the performance and, if necessary, applying corrected measures so that the performance takes place according to plan.”
The Main Steps in Control Function Include;
Establishing performance standards.
Measuring actual performance.
Determining the gap between set standards and achieved performance.
Taking corrective measures.
An integral activity in the controlling function is feedback. Without appropriate and valid feedback, no control measures can be successfully implemented. Feedback about a particular plan can help in identifying areas of improvement.
The Controlling Function Involves Following Activities;
Bringing actual results nearer to the desired results.
Improving the performance level of all activities being performed.
Regulating the use of all the resources for achieving planned objectives and goals.
The regulating working behavior of employees for maintaining order and discipline.
Checking distortions and deviations taking place in occurs in conformity the system to make it more cost-effective.
If in the controlling step, there is a huge gap in the actual and desired performance, the whole management process is revising.
Features of Controlling:
Based on the definition of control, its following features can identify:
Control is forward-looking because one can control future happenings and not the past. However, on the control process always the past performance is measuring because no one can measure the outcome of a happening which has not occurred. In light of these measurements, managers suggest corrective actions for the future period.
Control is both an executive process and, from the point of view of the organizations of the system, a result. As an executive process, each manager has to perform the control function in the organization. It is true that according to the level of a manager in the organization, the nature, scope, and limit of his control function may different as compare to a manager at another level. The word control is also preceding by an adjective to designate a control problem, such as quality control, inventory control, production control, or even administrative control. In fact, it is administrative control, which constitutes the most comprehensive control concept. All other types of control may subsume under it.
Control is a continuous process. Though managerial control enables the manager to exercise control at the point of action, it follows a definite pattern and timetable, month after month and year after year on-a continuous basis.
A control system is a coordinated-integrated system. This emphasizes that, although data collected for one purpose may differ from those with another purpose, these data should be reconciled with one another. In a sense, the control system is a single system, but it is more accurate to think of it as a set of interlocking sub-systems.
Notes: You will come to know the definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling.