Controlling is a fundamental management function that involves monitoring performance, comparing it to standards, and implementing corrections. It ensures organizational activities align with goals. The controlling process establishes standards, measures performance, compares results to standards, and takes corrective actions. Controlling helps improve performance, achieve goals, and adapt to changes through strategic and tactical decisions using various control mechanisms and types of controls.

1. Unit 5 .CONTROLLING
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies ,
Kopargaon

2. Controlling
• Controlling is a fundamental management function that involves
monitoring, evaluating, and regulating various organizational
activities to ensure they align with predetermined goals.

3. Controlling
• Definition:
• Controlling involves measuring actual performance against predetermined
standards, identifying deviations, and implementing corrective actions.
• Need and Importance:
• Ensures that organizational activities are on track to achieve desired
objectives.
• Helps in identifying deviations and taking corrective actions promptly.
• Facilitates efficiency, effectiveness, and goal attainment within the
organization.

4. The Control Process:
• Establishing Standards:
• Setting benchmarks or criteria against which performance can be measured.
• Measuring Performance:
• Assessing actual performance through various metrics, KPIs (Key Performance
Indicators), or performance evaluations.
• Comparing Performance Against Standards:
• Analyzing the measured performance against predetermined standards to
identify any deviations.
• Taking Corrective Action:
• Implementing necessary changes or corrective measures to address
deviations and bring performance back in line with objectives.

5. Managerial Decisions in Controlling:
• Strategic Decisions:
• Aligning long-term organizational strategies with controlling mechanisms to
ensure consistency.
• Tactical Decisions:
• Determining specific corrective actions or adjustments needed at a
departmental or functional level.

6. Types of Controls:
• Feed-forward Controls:
• Implemented before the actual work takes place to prevent potential
problems. It focuses on identifying and mitigating risks beforehand.
• Concurrent Controls:
• Executed during the actual execution of tasks to ensure that activities are on
track as planned.
• Feedback Controls:
• Applied after the completion of tasks to review performance and identify
areas for improvement based on past outcomes.

7. Types of Control Mechanisms:
• Financial Controls:
• Involves monitoring financial metrics, budgetary controls, cost controls, and
financial performance evaluation.
• Information Controls:
• Focuses on the accuracy, reliability, and accessibility of information critical for
decision-making.
• Benchmarking of Best Practices:
• Comparing the organization's performance metrics against industry best
practices to identify areas for improvement.

8. Significance of Controlling:
• Performance Improvement:
• Facilitates continuous improvement by identifying inefficiencies and areas
needing enhancement.
• Goal Achievement:
• Ensures that organizational objectives are met effectively and efficiently.
• Adaptation and Flexibility:
• Allows organizations to adapt to changing circumstances by adjusting their
strategies and operations.

9. THANK YOU
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies ,
Kopargaon