CONTROLLING

Students, Mr. Ram was given a task to make a copy of a original picture shown on right side . What do you think, both pictures are same or not? (compare them) If not than find out differences & make necessary correction where ever required.

Meaning of Controlling

• Controlling implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.

Features of Controlling

• Controlling is pervasive• Controlling is a primary function

• Controlling is a continuous process

• Controlling is a goal oriented function

Importance of Controlling1. Accomplishing organizational

goals: The controlling function measures progress towards the organizational goals and brings to light the deviations.

2. Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective.

3. Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources.

• Improving employee motivation : A good control system ensures that employees know well in advance what they are expected to do.

• Ensuring order and discipline : Controlling minimizes dishonest behaviour by keeping a close check on their activities.

• Facilitating coordination in action : Controlling provides direction to all activities and efforts for achieving organizational goals.

Limitations of controlling• Difficulty in setting

quantitative standards: Some standards like employee morale, job satisfaction etc cannot be measured in quantitative terms.

• Little control on external factors: External factors like govt. policies, competition cannot be controlled.

Limitations of controlling

• Resistance from employees: Control is seen as a restriction to their freedom by employees.

• Costly affair: Control involves expenditure in the form of time, effort and cost.

Relationship between planning and controlling

• Planning and controlling are interdependent and interlinked activities.

• Without planning there is no basis for controlling activities as we have to compare actual performance with planned performance.

• If controlling is not effective then planned activities cannot be properly implemented.

• It is said that planning is looking ahead while controlling is looking back, however, both are backward and forward looking functions.

• Planning makes controlling easier and effective.

• Controlling improves future planning by providing information.

Steps In The Controlling Process

[1] Setting Performance Standards[2] Measurement of Actual Performance[3] Comparison of Actual Performance with Standards[4] Analyzing deviations[5] Taking Corrective Action

Setting Performance Standards

Standards serve as criteria against which

actual performance would be measured. It can be

both in terms of quantitative and

qualitative.

Measurement of Actual Performance

Performance should be measured in an objective and reliable manner.

Comparison of Actual Performance with Standards

Such comparison reveals deviations.

Analyzing deviations

This step compels events to conform to plans.

Deviations are the errors or weakness which may occur in the process of achievement of goals and the manager has to rectify them. The acceptable range of deviations must be determined. Some need to be attended to urgently.

• The following should be used by the manager:

•Critical Point Control: It focuses on the Key Result Areas which are critical to the success of an organization.

•Management by exception: Only significant deviations which go beyond the permissible limit should be brought to the notice of management .”If you try to control everything , you may end up controlling nothing”

Taking Corrective Action

It is necessary to identify the exact deviation to take corrective action. This step compels events to conform to plans.

Steps In The Controlling Process • [1] Setting Performance Standards: Standards serve as criteria against which actual performance would be measured. It can be both in terms of quantitative and qualitative.

• [2] Measurement of Actual Performance: Performance should be measured in an objective and reliable manner.

• [3] Comparison of Actual Performance with Standards: Such comparison reveals deviations.

• [4] Analysing deviations: This step compels events to conform to plans.

• events to conform to plans.

• Deviations are the errors or weakness which may occur in the process of achievement of goals and the manager has to rectify them.

• The acceptable range of deviations must be determined.

• Some need to be attended to urgently. • The following should be used by the manager:

• Critical Point Control: It focuses on the Key Result Areas which are critical to the success of an organization.

• Management by exception: Only significant deviations which go beyond the permissible limit should be brought to the notice of management .”If you try to control everything , you may end up controlling nothing”

• [5] Taking Corrective Action: It is necessary to identify the exact deviation to take corrective action. This step compels