Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
3.pdf
1. Controlling Function of Management
What is Controlling?
Controlling consists of verifying whether everything occurs in confirmities 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
Controlling has got two basic purposes
1 It facilitates co-ordination
2 It helps in planning
Features of Controlling Function
Following are the characteristics of controlling function of management-
1 Controlling is an end function- A function which comes once the performances are made
in confirmities with plans.
2 Controlling is a pervasive function- which means it is performed by managers at all levels
and in all type of concerns.
3 Controlling is forward looking- because effective control is not possible without past
being controlled. Controlling always look to future so that follow-up can be made whenever
required.
4 Controlling is a dynamic process- since controlling requires taking reviewal methods,
changes have to be made wherever possible.
5 Controlling is related with planning- Planning and Controlling are two inseperable
functions of management. Without planning, controlling is a meaningless exercise and
without controlling, planning is useless. Planning presupposes controlling and controlling
succeeds planning.
Process of Controlling
1 Establishment of 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-
a 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.
2. b 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. Performance levels are sometimes easy to measure and sometimes difficult.
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-
a Attitude of the workers,
b Their morale to work,
c The development in the attitudes regarding the physical environment, and
d 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. Deviation can be defined as the gap between actual
performance and the planned targets. The manager has to find out two things here- extent of
deviation and cause of deviation. 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. 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-
a Erroneous planning,
b Co-ordination loosens,
c Implementation of plans is defective, and
d Supervision and communication is ineffective, etc.
4 Taking remedial actions- Once the causes and extent of deviations are known, the manager
has to detect those errors and take remedial measures for it. There are two alternatives here-
a Taking corrective measures for deviations which have occurred; and
b 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 controlling.
3. Control may be direct or indirect
The two types of direct control are action control and result control
Action control
Action controls are the most direct types of management control and the efficiency lies within the
possibility to focus control on employee’s actions. Common types of action control are behavioral
constraints, pre action reviews, action accountability and redundancy.
Behavioral constraints are considered as a negative/constraining form of action control, the purpose
is to make it difficult or impossible to do things that should not be done.
As the action controls are efficient when applied, the knowledge of the desired actions are crucial
for reaching the desired results. For an organization in a stable environment, action control
and a bureaucratization can be good when the knowledge of what needs to be done is well
defined. However, in a dynamic environment when innovation is a prime goal, action
controls may be in the way of adapting to change needed to maintain a competitive
advantage
Result control
One of the most powerful ways to influence an organization is through results control. To control
the output from an organization by rewarding performance creates an effective motivator.
Merchant et al. considers that rewards does not have to be monetary but can also consist of
non-monetary rewards that can be just as efficient (Merchant & Van der Stede, 2012).
The elements of results control involves defining performance dimensions, measuring performance,
setting performance targets and providing rewards or incentives that could be either intrinsic
of extrinsic.
Indirect Control
For the indirect controls the two types are cultural control and personnel control
Cultural control
In this context, culture is defined as shared values, beliefs, norms and ways of behaving.
Cultural controls are designed to encourage mutual monitoring and are strongest when
members of the group have social or emotional ties to one another. A strong culture can
prompt employees to work together in a synergistic manner, but there is also a risk that a
strong culture can cause inertia, that prohibits needed changes and adaptation in dynamic
environments.
Methods to apply cultural control are codes of conduct, group based rewards, physical
arrangements, the tone at the top and intra-organizational transfers. Physical and social
arrangements such as dress codes and office plans can for instance be used by technology
firms to promote the message of employee equality and the importance of innovation.
Personnel control
Personnel control and cultural controls are often referred to as soft control types due to that
they promote acting in a direction of corporate values and culture instead of the more direct
4. methods promoted by action and results control Personnel control motivates employees to
control their own behavior and can be applied by for instance selection and placement,
training and job design and provision of necessary resources.
Prerequisites of Control
Following are the basic requirements of control:
1. Planning: Planning and control are like the inseparable twins. Planning is the first function of
management. Plan serves as a standard for measuring the performance of individuals and the
enterprise as a whole for control purpose. If plans are complete and clear, controls will be
effective.
2. Organizational Structure: Control will be effective only when the organizational structure is
clear and complete. Control functions through people. In case of deviations from the set
standards, corrective actions can be taken only through a person who is actually responsible
for such deviation. Unless the organizational responsibility is clear and specific. this can’t be
made possible.
3. Adequate Authority: Adequate authority is essential for performing control function. If adequate
authority is not delegated to a manager, he cannot take necessary steps to detect deviations
and to correct them. When a particular task is assigned to a manager, he decide on various
matters to get the job performed effectively and efficiently. Hence, delegation of adequate
authority is one of the prerequisites of control system.
4. Supply of Information: Control is a process whereby actual performance is compared with set
standards. This is possible only when a manager is supplied with adequate information.
Information as to plans, programmes and budget is to be communicated to managers
concerned with determination of standards of performance, which in turn to be transmitted
to the subordinates who have to meet them through various operations.
As soon as the actual performance is measured, reports are prepared and communicated to the
concerned managers for the purpose of evaluation. If there is any deviation in the actual
performance, instructions as to corrective action are feedback to the operating system to set
right the process in the future. Hence, communication of information at several points is an
important prerequisite of the control system.
5. Corrective Action: The very, objective of control function is to take corrective action so that
deviations may not happen again. There is no meaning of control unless corrective action is
taken to set right the deviations, if any. Hence, corrective action is another prerequisite of
the control system.
References:
"MSG Management Study Guide." Kotter's 8 Step Model of Change. Accessed December 06,
2018. https://www.managementstudyguide.com/controlling_function.htm.
http://www.diva-portal.org/smash/get/diva2:1118217/FULLTEXT02