This document discusses the concept of directing in management. It defines directing as guiding, inspiring, motivating and leading subordinates towards accomplishing organizational goals. Directing is a key managerial function that involves supervision, motivation, leadership and communication. The nature of directing is that it is an ongoing process throughout the organization and deals with human behavior. Effective directing principles include having aligned individual and organizational objectives, maximizing individual contributions, clear lines of authority, appropriate techniques for different situations, direct supervision when possible, and good managerial communication. Motivation is discussed as energizing behavior and directing it towards goals through satisfying needs and wants.

1. Module 5
Neha Aggarwal

2.  Meaning of direction,
 Nature of directing,
 Motivation.
 Basis of motivation-fear, Money, Satisfaction, Importance of behavior.
 Individual needs, Needs of organization,
 Factors influencing performance. Work environment, Group dynamics- formal & Informal,
Communication principles and practices.
 Concept of managerial control.
 Importance of control, Control process.
 Methods of control.
 Essentials of effective control.

3.  Directing is the heart of management function. All other functions of management such as planning, organizing, and staffing have
no importance without directing. Leadership, motivation, supervision, communication are various aspects of directing.
 Directing refers to a process or technique of instructing, guiding, inspiring, counselling, overseeing and leading people towards the
accomplishment of organizational goals. It is a continuous managerial process that goes on throughout the life of
the organization.
 Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve
predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no
importance if direction function does not take place. Directing initiates action and it is from here actual work starts. Direction is said
to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of
management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and
efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can
be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people
towards accomplishment of organizational goals.

4.  Directing means giving instructions, guiding, counselling, motivating and leading the staff
in an organisation in doing work to achieve Organisational goals. Directing is a key
managerial function to be performed by the manager along with planning, organizing,
staffing and controlling. From top executive to supervisor performs the function of
directing and it takes place accordingly wherever superior – subordinate relations
exist. Directing is a continuous process initiated at top level and flows to the bottom
through organisational hierarchy.
 It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction is that inert-personnel
aspect of management which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:
• Supervision
• Motivation
• Leadership
• Communication

5.  (i) Supervision- implies overseeing the work of subordinates by their superiors. It is
the act of watching & directing work & workers.
(ii) Motivation- means inspiring, stimulating or encouraging the sub-ordinates with
zeal to work. Positive, negative, monetary, non-monetary incentives may be used for
this purpose.
(iii) Leadership- may be defined as a process by which manager guides and
influences the work of subordinates in desired direction.
(iv) Communications- is the process of passing information, experience, opinion etc
from one person to another. It is a bridge of understanding.

6. NATURE AND
CHARACTERISTICS OF
DIRECTING

Directing is characterized by the following distinguishing features:
1. Element of management. Directing is one of the important functions of management. It is through direction that management
initiates action in the organization.
2. Continuing function. Direction is continuous process and it continues throughout the life of an organization. A manager never
ceases to guide, inspire and supervise his subordinates. A manager can not get things done simply by issuing orders and instruction.
He must continually provide motivation and leadership to get the orders and instructions executed.
3. Pervasive function. Direction initiates at the top and follows right up to the bottom of an organization. Every manager in the
organization gives direction to his subordinates as superior and receives direction as subordinates from his superior. Direction
function is performed at every level of management and in every department of the organization.
4. Creative function. Direction makes things happen and converts plans into performance it is the process around which all
performance revolves. Without direction, human forces in an organization become inactive and consequently physical factors become
useless. It breathes life into organization.
5. Linking function. Planning, organizing and staffing are merely preparation for doing the work and work actually starts when
managers perform the directing function. Direction puts plans into an action and provides performance for measurement and control.
In this way, directing serves as a connecting link between planning and control.
6. Management of human factor. Direction is the interpersonal aspects of management. It deals with the human aspect of
organization. Human behavior is very dynamic and is conditioned by a complex of forces about which not much is known. Therefore,
direction is a very difficult and challenging function.

7. PRINCIPLES OF DIRECTING

Directing is a complex function as it deals with people whose behavior is unpredictable. Effective direction is an art which a
manager can learn and perfect through practice. However, managers can follow the following principles while directing their
subordinates.
1. Harmony of objectives. Individuals join the organization to satisfy their physiological and psychological needs. They are
expected to work for the achievement of organizational objectives. They will perform their tasks better if they feel that it will satisfy
their personal goals. Therefore, mar agreement should reconcile the personal goals of employees with the organizational goals.
2. Maximum individual contribution. Organizational objectives are achieved at the optimum level when every individual in the
organization makes maximum contribution towards them. Managers should, therefore, try to elicit maximum possible contribution
from each subordinate.
3. Unity of command. A subordinate should get orders and instruction from one superior only. If he is made accountable to two
bosses simultaneously, there will be confusion, conflict, disorder and indiscipline in the organization. Therefore, every subordinate
should be asked to report to only one manager.
4. Appropriate techniques. The manager should use correct direction techniques to ensure efficiently of direction. The technique
used should be suitable to the superior, the subordinates and the situation.
5. Direct supervision. Direction becomes more effective when there is a direct personal contact between the superior and his
subordinates. Such contact improves the morale and commitment of the employees. Therefore, whenever possible direct
supervision should be used.
6. Managerial communication. A good system of communication between the superior and his subordinates helps to improve
mutual understanding. Upwards communication helps a manager to understand the subordinates to express their feeling.

9. MOTIVATIONAL CONCEPTS

Concept of Motivation:-
Technically, the term motivation can be traced to Latin word Movere, which means 'to move'. In order to understand the concept of motivation, we have to
examine three terms: motive, motivating and motivation and their relationship.
Motive:-

Based on the Latin word Movere, motive (need) has been defined as follows: according to Bernard Berelson and Garry A. Steiner, " A motive is an inner
state that energizes, activates, or moves (hence motivation), and that directs behavior towards goals."
Motive has also been defined by Fillmore H. Sanford and Larence S. Wrights man as, "A motive is restlessness, a lack, a yen, a force. Once in the grip of
a motive an organism does something to reduce restlessness, to remedy the lack, to alleviate the yen, to mitigate the force."
Here, we can differentiate between needs and wants. While needs are more comprehensive and include desires- both physiological and psychological,
wants are expressed in narrow sense and include only those desires for which a person has money and also the desire to spend the money to satisfy the
wants. There are many psychological needs, like social needs, recognition needs etc. which does not fall under the category of wants.
Motivating:-

Motivating is a term which implies that one person (in the organizational context, a manager) includes another, (say, employee) to engage in action (work
behaviour) by ensuring that a channel to satisfy the motive becomes available and accessible to the individual. In addition to channelizing the strong
motives in a direction that is satisfying to both organization and employees, the manager can also activate the latent motives in individuals and harness
them in a manager that would be funtional for the organization.
Motivation:-

While motive is energizer of action, motivating is the channelization and activation of motives, motivation is the work behavior itself. Motivation depends
on motives and motivating, therefore, it becomes a complex process. For example, Dublin has defined motivation as follows: "Motivation is the complex
force starting and keeping a person at work in an organization. Motivation is something that moves a person to action, and continues him in the course of
action already initiated."
According to McFarland, "Motivation refers to the way in which urges, drives, desires, aspirations, striving, or needs direct, control, or explains the
behavior of human beings."

10.  Motivation is the art and the science of influencing people so that they accomplish the
objectives and goals of the organisation. Motive is the force that makes human beings
work towards a particular objective. It acts as a stimulant for people to work hard. This
force urges human beings to work in order so that certain intrinsic wants and desires are
fulfilled. The intensity of the desire plays a very important role in motivating the person
towards its fulfillment.
 The accomplishment of organisational goals is not possible until and unless we harness
the efforts of employees to its common goal by giving them a single unified target and
making them strive towards attaining that target. This becomes all the more important
when we consider that a demotivated worker can demoralise the entire team and may
adversely impact the performance of the entire unit.
 The management has to bring about an environment of motivation in the organisation.
Effectively motivating employees has been one of the most important and challenging
duties of the management. Because motivation is highly individualised, managers have to
use a number of techniques to keep their employees motivated and happy.

11. CHARACTERISTICS OF
MOTIVATION
1.Motivation is a psychological phenomenon.
2.Motivation produces goal directed behavior.
3.Motivators can be positive as well as negative.
4.Motivation is a complex process.
5.Motivation is a dynamic and continuous process.

12. IMPORTANCE OF
MOTIVATION

1.Motivation helps change negative attitude to positive attitude.
2.Motivation improve performance level of employees.
3.Helps in achieving the organisational goal.
4.Motivation creates supportive work environment.
5.Motivation help the managers to introduce changes.
6.Reduction in employees turnover.

15. 2 TYPES OF FACTORS THAT
INFLUENCE MOTIVATION:
• Intrinsic – self generated factors (responsibility, freedom to act, scope to use and
develop skills and abilities, interesting and challenging work, opportunities for
advancement) – they have a deeper and longer-term effect
• Extrinsic – what is done for people to motivate them (rewards, promotion,
punishment) – they have an immediate and powerful effect, but won’t necessarily last
long
 In other words: Intrinsic motivation comes from a person’s internal desire to do
something. Reasons may be that a particular activity gives him or her pleasure, helps
to develop a particular skill of seems to be the right thing to do in moral / ethical terms.
Extrinsic motivation is generated by external factors that are less related to the
particular task.

17.  Intrinsic motivation means that the individual's motivational stimuli are coming from within. The individual
has the desire to perform a specific task, because its results are in accordance with his belief system or
fulfills a desire and therefore importance is attached to it.
 Our deep-rooted desires have the highest motivational power. Below are some examples:
• Acceptance: We all need to feel that we, as well as our decisions, are accepted by our co-workers.
• Curiosity: We all have the desire to be in the know.
• Honor: We all need to respect the rules and to be ethical.
• Independence: We all need to feel we are unique.
• Order: We all need to be organized.
• Power: We all have the desire to be able to have influence.
• Social contact: We all need to have some social interactions.
• Social Status: We all have the desire to feel important.

18.  Extrinsic motivation means that the individual's motivational stimuli are
coming from outside. In other words, our desires to perform a task are
controlled by an outside source. Note that even though the stimuli are
coming from outside, the result of performing the task will still be
rewarding for the individual performing the task.
 Extrinsic motivation is external in nature. The most well-known and the
most debated motivation is money. Below are some other examples:
• Employee of the month award
• Benefit package
• Bonuses
• Organized activities

19.  Positive and Negative Motivation:
 a.Positive Motivation: It is the reward based motivation which tires to create
willingness to perform better. It improves performance, increase mutual cooperation
and develops trust between employees and management. Positive motivation may
take the form of monetary, nonmonetary or both. Examples Monetary Incentive:- pay
increment, cash reward, bonus payment, leave with pay, profit sharing scheme,
retirement benefit and Non monetary Incentive:- promotion, participation in decision-
making ,recognition, autonomy or freedom to work, challenging work.
 b. Negative Motivation: Negative motivation means the act of forcing employees to
work by means of threat and punishment. It involves disciplinary actions. Examples:
Monetary: - fines, penalties, pay cut, Non-monetary:- demotion, threat of dismissal
from job, transfer to remote areas, and group rejection. Since, this is not good
practice. However, sometimes manager may be compelled to use this technique with
a view to prevent them from undesirable behavior.

20.  (i) Financial Incentives The reward or incentive which can be calculated in terms of money is known as
monetary incentive.
 The common monetary incentives are
 (a) Pay and allowances
(b) Profit sharing
(c) Co-Partnership/stock option
(d) Bonus
(e) Commission
(f) Suggestion system
(g) Productivity linked with wage incentives
(b) Retirement benefits
 (i) Perks/Fringe benefits/perquisites
 (ii) Non-Financial Incentives The incentives which can not be calculated in terms of money are known
as non-financial incentives.
 The common non-financial incentives are
 (a) Status
(b) Organisational climate
(c) Career advancement
(d) Job enrichment
(e) Employees recognition
(f) Job security
(g) Employee’s participation
(h) Autonomy/Employee empowerment

21. SUPERVISION:
 The word ‘Supervision’ can be broken down into two words where ‘super’ means over and above and ‘vision’ means seeing. Hence,
supervision is an act of seeing the activities of the employees from over and above. Supervision is important to ensure that
acceptable standards of workmanship are maintained and employee practices are in line with established policies. In other words,
supervision can be defined as instructing, guiding, monitoring and observing the employees while they are busy carrying out their
assigned duties.
 Supervisors need to make sure that work is done according to the plans laid down by the higher management. As part of
supervisory function, the managers must clarify instructions in case of any ambiguity, resolve problems and ensure cooperation and
smooth working in their team.
 The supervisor has to:
 a. Oversee their subordinates at work,
 b. Look out for deviations,
 c. Ensure remedial means to remove obstacles, and
 d. Wherever required initiate training and development to see to it that the workforce attains necessary wherewithal to satisfactory
job performance.
 The importance of supervision must never be underestimated. Supervisors are the important link between the actual workforce and
the management. They are the medium through which the management communicates with the workforce and the workforce
interacts with the management. They communicate the policies, the plans and dreams of the organisation to the employees. They
motivate and energize the workforce to focus its energy towards joint goals. Any miscommunication can adversely affect the
organisation as a whole.
 The supervisors have to raise the morale and job satisfaction level of the workers, help the workers to avoid stress while remaining
focused on the goals. They have to share responsibilities with the supervisees and lead them. This highlights how important it is for
a supervisor to possess leadership skills. They have to share the organisational vision with the workers and make them willing
partners in the organisational progress.

23. WHY ARE SUPERVISOR SKILLS
IMPORTANT?
 A “supervisor” is anyone who directs and is responsible for the work of others. This person is familiar with the daily work
their staff and receives direction from those who make bigger decisions for the company. Overall, they need to be able to:
• Communicate well with diverse groups in and out of the organization
• Utilize problem-solving skills, creativity, and critical thinking
• Demonstrate qualities like empathy, support, and concern
• Be able to develop their employees based on their individual strengths
 Excellent Communication
 Communication skills are one of the most important assets a good supervisor should have. They need to assign projects
clearly and communicate important information to staff regularly. Transparency is important, and supervisors should strive to
keep an open door for employees to approach them with their needs or issues.
 Conflict Resolution
 Conflict can happen in the workplace. A good manager recognizes this and creates an effective method of minimizing
conflict and dealing with it when it takes place. Being a good listener and mediator is also important in tricky situations.
 Strong Leadership
 The supervisor should serve as an example to their staff. They must assert leadership and make their employees want to
follow them as they take their organization through normal business changes. A strong leader will encourage their team and
lead the way to success.
 Critical Thinking
 There are may tasks that a supervisor needs to deal with that require excellent critical thinking skills. With a high-level
position comes more responsibilities, and more decisions to be made. Critical thinking skills make the decision process

24.  Time Management
 Time management is essential in a business with deadlines and deliverables. Being able to juggle timelines
and meet goals regularly means supervisors must have both the awareness of when things need to be
complete and how much time it takes to do them – plus getting their team to work on the same timeline as
well.
 Priority Management
 Managers must also be able to structure the workload to ensure all projects are given the correct amount of
priority, and that high priority projects are finished first. They need to be familiar with all company goals in
order to determine which projects are the most important.
 Diversity Awareness
 Diversity is extremely important in organizations today. A great manager recognizes this and encourages
their company to continue working on company diversity and inclusion (D&I). The supervisor may even
decide to to join the team that works on D&I in order to help with the initiative more.
 Problem Solving
 When issues in the workplace arise, supervisors should use their skills to handle them. Great problem
solving skills help a manager assess the situation at hand and develop an effective plan on how to tackle it.
 Guiding Workloads
 Supervisors need to guide the overall work of their employees. Their view of work must be broader than that
of their employees. Being an effective supervisor means understanding the bigger picture, and adjusting
work to accommodate that. They must give direction and carry it out purposefully, plan the workflow and give
active direction to staff members.

25.  Workload Organization
 Constantly changing priorities in the office mean that a supervisor needs to continually organize the work. They needs to take into
account the demands placed on the employees when they are organizing the workload. They should also recognize the employees’
needs and listen to feedback when making work and organizational decisions.
 Staff Development
 A large role of a supervisor is developing personnel. Thorough and strategic employee development is essential for a happy and satisfied
staff, so supervisors should get to know their subordinates’ strengths and ambitions so they can help them grow as a valuable asset
within the company. They should have a plan for the employee’s development, and set goals for how they can work on their weaknesses
and contribute to projects where they are likely to succeed.
 Managing Performance
 The supervisor is responsible for managing employee performance. They should continually coach direct reports on how to achieve their
individual potential and set appropriate expectations. Managers should look at future projects and determine how well the employee
should perform, and manage them accordingly. On occasion, there may be performance problems with a member of the team. In this
situation, the supervisor must calmly approach the issue and discuss a plan to overcome it.
 Interpersonal Skills
 Developing and maintaining good relationships with other departments is also vital. The supervisor wants to ensure both their employees
and the organization meet their goals, so they should recognize the importance of working together cohesively.
 Openness to Advice
 The supervisor should look to their peers for advice and guidance when they are faced with a problem that is outside of their expertise.
Issues can be assuaged successfully when they have a mentor in their organization or field who is willing to offer advice when requested.
 Willingness to Learn
 A last trait that supervisors should have is the willingness to learn and grow. While their team is learning, they too should be developing
themselves in their careers and trying to learn as much as they can about both their subject matter and about supervising their
employees in the best way possible.
 Conclusion
 With these essential skills, managers can effectively solve any supervisory issues they may encounter, and prepare for future situations
that require the oversight of a knowledgeable and dedicated supervisor.

26.  Leadership means influencing people and their behaviour and leading them to the
achievement of certain goals and objectives. The qualities in a leader should be such
that he influences and guides his followers towards the accomplishment of common
goals.
 Leadership is a very important aspect of management. The manager has to perform
all duties as a leader and is expected to fulfill different roles that he or she may be
called upon to fulfill. The leader will have to play many roles, which may be
informational, decisional or even interpersonal. The basic role that the leader is
required to play is to lead the organisation (or department) rally and the subordinates
to a single unified line of action that resonates with predetermined objectives or goals
of the entire organisation.

27.  Leadership may be defined as the process of influencing the behaviour of people by making them strive voluntarily towards
the achievement of goals.
Qualities of good leader :
1. Physical qualities
A good leader must possess a good height, weight, health and appearance. Health and endurance help a leader to work hard
and inspire others also to do so.
2. Knowledge
A good leader should have required knowledge and competence, so that he can influence others.
3. Integrity
A leader should possess high level of integrity and honesty, so that he can be a role model to others.
4. Initiative
A leader should have courage and initiative to do things on his own, rather than waiting for others to do it first.
5. Communication skills
A leader should be a good communicator. He should be able to clearly explain his views to others. He should not only be a
good speaker, but a good listener, teacher and counsellor.
6. Motivation skills
A leader should understand the needs of his employees and motivate them by satisfying their needs.
7. Self-confidence
A leader should have a high level of confidence. He should not lose confidence even in the most difficult times.
8. Decisiveness
A leader must be decisive in the sense that once he has taken a decision, he should be firm on it.
9. Social skills
A leader should be sociable and friendly with his colleagues and followers, so that he can understand them and their needs.

28. Different Styles of Leadership
(i) Autocratic or Authoritative Leadership
(ii) Democratic or Participative
Leadership
(iii) Free-rein or Laissez-Faire Leadership

29.  Communication can be defined as, “the act of conveying information from one person
to another, or from one person to a group. It should be done in such a way that the
message suffers the least distortion on the way, and is conveyed in a manner that it is
understood by the receiver exactly the way it was intended to be by the sender.” Thus,
communication links the different functions of management. It is the primary means by
which people obtain and exchange information.

30. FORM OF ORGANISATIONAL
COMMUNICATION
 (i) Formal Communication It refers to official communication taking place in the organisation. According to
direction of flow, formal communication can be divided into four types
 (a) Downward communication
(b) Upward communication
(c) Horizontal communication
(d) Diagonal communication
 Common Networks of formal communication are
 (a) Wheel pattern
(b) Chain pattern
(c) Circle pattern
(d) Channel or free flow pattern
(e) Inverted’V
 (ii) Informal Communication Informal communication between different members of organisation who are
not officially attached to each other is known as Informal communication.
 Common networks of informal communication are
 (a) Gossip
(b) Clusters
(c) Single strand
(d) probability

31.  According to the seven Cs, communication needs to be: clear, concise, concrete, correct, coherent,
complete and courteous.
 1. Clear
 When writing or speaking to someone, be clear about your goal or message. What is your purpose in
communicating with this person? If you’re not sure, then your audience won’t be sure either.
To be clear, try to minimize the number of ideas in each sentence. Make sure that it’s easy for your
reader to understand your meaning. People shouldn’t have to “read between the lines” and make
assumptions on their own to understand what you’re trying to say.
Information and actions required, must be clear so the reader has the information they need to take
action.
 2. Concise
 When you’re concise in your communication, you stick to the point and keep it brief. Your audience
doesn’t want to read six sentences when you could communicate your message in three.
• Are there any adjectives or “filler words” that you can delete? You can often eliminate words like “for
instance,” “you see,” “definitely,” “kind of,” “literally,” “basically,” or “I mean.”
• Are there any unnecessary sentences?
• Have you repeated the point several times, in different ways?

32.  3. Concrete
 When your message is concrete, then your audience has a clear picture of what you’re telling them. There are
details (but not too many!) and vivid facts, and there’s laser-like focus. Your message is solid.
 4. Correct
 When your communication is correct, it fits your audience. And correct communication is also error-free
communication.
• Do the technical terms you use fit your audience’s level of education or knowledge?
• Have you checked your writing for grammatical errors? Remember, spell checkers won’t catch everything.
• Are all names and titles spelled correctly?
 5. Coherent
 When your communication is coherent, it’s logical. All points are connected and relevant to the main topic, and the
tone and flow of the text is consistent.
 6. Complete
 In a complete message, the audience has everything they need to be informed and, if applicable, take action.
• Does your message include a “call to action,” so that your audience clearly knows what you want them to do?
• Have you included all relevant information – contact names, dates, times, locations, and so on?
 7. Courteous
 Courteous communication is friendly, open, and honest. There are no hidden insults or passive-aggressive tones.
You keep your reader’s viewpoint in mind, and you’re empathetic to their needs.
 there are a few variations of the 7 Cs of Communication:
• Credible
• Creative

33. CONTROLLING
Concept of managerial control.
Importance of control, Control
process.
 Methods of control.
Essentials of effective control.

34.  Controlling involves comparison of actual performance with the planned performance. If
there is any difference or deviation, then finding the reasons for such difference and taking
corrective measures or action to stop those reasons so that they don‘t re-occur in future
and that organizational objectives are fulfilled efficiently.
 Controlling is one of the important functions of a manager. In order to seek planned results
from the subordinates, a manager needs to exercise effective control over the activities of
the subordinates. In other words, the meaning of controlling function can be defined as
ensuring that activities in an organization are performed as per the plans. Controlling also
ensures that an organization’s resources are being used effectively & efficiently for the
achievement of predetermined goals.
 Therefore, controlling function should not be misunderstood as the last function of
management. It is a function that brings back the management cycle back to the planning
function. Thus, the controlling function act as a tool that helps in finding out that how actual
performance deviates from standards and also finds the cause of deviations & attempts
which are necessary to take corrective actions based upon the same.

35. IMPORTANCE OF
CONTROLLING
 1. Controlling helps in achieving organizational goals: The controlling function
measures progress towards the organizational goals and brings to light/indicates
corrective action.
 2. For Evaluating/Judging accuracy of standards: A good control system enables
management to verify whether the standards set are accurate or not by careful check on
the changes taking place in the organizational environment.
 3. Making efficient use of resources: By the process of control, a manager seeks to
reduce wastage of resources.
 4. Improves employees motivation: A good control system ensures that employees
know well in advance what they are expected to do & also the standard of performance. It
thus motivates & helps them to give better performance.
 5. Facilitating Coordination in action: In controlling each department and employee is
governed by predetermined standards which are well coordinated with one another.
Control provides unity of direction.
 6. Ensuring order and discipline: Controlling creates an atmosphere of order and
discipline in the organization by keeping a close check on the activities of its employees.

36. CONTROLLING PROCESS
 1. Setting Performance Standards: Standards are the criteria against which actual
performance would be measured. Thus standards become basis for comparison and the
manager insists on following of standards.
 2. Measurement of Actual Performance: Performance should be measured in an
objective and reliable manner which includes personal observation, sample checking.
Performance should be measured in same terms in which standards have been
established, this will facilitate comparison.
 3. Comparing Actual Performance with Standard: This step involves comparison of
actual performance with the standard. Such comparison will reveal the deviation between
actual and desired performance. If the performance matches the standards it may be
assumed that everything is under control.
 4. Analysing Deviations: The deviations from the standards are assessed and analysed
to identify the causes of deviations.
 5. Taking Corrective Action: The final step in the controlling process is taking corrective
action. No corrective action is required when the deviation are within the acceptable limits.
But where significant deviations occur corrective action is taken.

38. TWELVE MAIN ESSENTIALS OF AN EFFECTIVE
AND EFFICIENT CONTROL SYSTEM
 1. Simplicity:
 A good control system must be simple and easily understandable so that all the managers can apply
it effectively.
 Complicated control techniques fail to communicate the meaning of control data to the managers.
 2. Objectivity:
 The standards of performance should be objective and specific, quantified and verifiable. They
should be based on the facts so that control is acceptable and workable.
 3. Promptness:
 The control system should provide information soon enough so that the managers can detect and
report the deviations promptly and necessary corrective actions may be taken in proper time.
Corrective measures are of no value if those are taken too late.
 4. Economy:
 The control system must justify the expenses involved. In other words, anticipated earnings from it
should be greater than the expected costs in its working. A small organisation cannot use the
expensive control technique applied in large enterprises.

39.  5. Flexibility:Internal goals and strategies must be responsive to the changes in the environment and the control
system should be flexible enough to adapt the changing conditions or unforeseen situations. It should be adaptable
to the new developments. Flexibility in control system can be introduced by making alternative plans.
 6. Accuracy:
 The control system should encourage accurate information in order to detect deviations. The technique of control
used should be appropriate to the work being controlled.
 7. Suitability: Control must reflect the needs and nature of the activities of the organisation, The control system
should focus on achieving the organisational goals.
 8. Forward-looking Nature:
 The control system must be directed towards the future. It must pay attention on how the future actions can be
conformed with the plans adopted.
 9. Focus on Strategic Points:
 The control system should focus attention on strategic or critical deviations. Only exceptional deviations require the
attention of the managers.
 10. Motivating:
 A good control system should pay due attention to the human factor, It should be designed to secure positive action
from the workers. Self-control tends to be motivated. Direct contact between the controller and the controlled also
helps in making the control system motivational.
 11. Reflection of Organisation Pattern:
 Control must reflect organisation pattern. Since the events are controlled through people, it is essential that controls
must conform to the organisation pattern. The control process should be acceptable on the psychological front.
 12. Corrective Action:
 Control system must ensure corrective actions. An adequate control technique should not only detect the deviations
and failures, but should also disclose where they are occurring; who is responsible for them; and what should be
done to correct them.

40. RELATIONSHIP BETWEEN
PLANNING AND CONTROLLING
 Planning and controlling are interrelated and in fact reinforce each other in the sense that-
 1. Planning is pre-requisite for controlling. Plans provide the standard for controlling. Thus,
without planning, controlling is blind. If the standards are not set in advance managers
have nothing to control.
 2. Planning is meaningless without controlling. It is fruitful when control is exercised. It
discovers deviations and initiates corrective measures.
 3. Effectiveness of planning can be measured with the help of controlling.
 4. Planning is looking ahead and controlling is looking back: Planning is a future
oriented function as it involves looking in advance and making policies for the maximum
utilization of resources in future that is why it is considered as forward looking function. In
controlling we look back to the performance which is already achieved by the employees
and compare it with plans. If there are deviations in actual and standard performance or
output then controlling functions makes sure that in future actual performance matches
with the planned performances. Therefore, controlling is also a forward looking function.
Thus, planning & controlling cannot be separated. The two are supplementary function
which support each other for successful execution of both the function. Planning makes
controlling effective whereas controlling improves future planning.