Before to know about controlling process we need to know about

What is controlling?

Control is a fundamental concept in management and refers to the process of monitoring, evaluating,
and regulating the activities of an organization or individual to ensure that they are in line with
established goals and standards. Control is an essential function of management because it helps
organizations achieve their objectives efficiently and effectively by identifying deviations from plans
and taking corrective actions when necessary.

Controlling is a vital management function that helps organizations monitor, evaluate, and regulate
their activities to ensure they align with established standards and goals. It comes in various forms,
offers numerous benefits, and involves addressing challenges, while technology and ethics play
essential roles in its implementation.

Why are Control needed?

If all personnel always did what was best for the organization, control — and even management —
would not be needed. But, obviously individuals are sometimes unable or unwilling to act in the
organization’s best interest, and a set of controls must be implemented to guard against undesirable
behavior and to encourage desirable actions.

One important class of problems against which control systems guard may be called personal
limitations. People do not always understand what is expected of them nor how they can best perform
their jobs, as they may lack some requisite ability, training, or information

Controlling process
The controlling process is an essential function within the management process of an organization. It
involves monitoring, evaluating, and regulating various activities and resources to ensure that they
align with the organization’s goals and objectives. Controlling is crucial for ensuring that the
organization stays on course and that its performance meets or exceeds the desired standards.

STEPS IN CONTROLS PROCESS

The process of managerial control consists of the following main steps:

Establishment of standards: The first step in control process is the setting up of control Standards.
Standards represent the criteria against which actual performance is measured. Standards serve as the
benchmarks because they reflect the desired results or acceptable

Level of performance. Control standards may be of the following kinds:

(a) Quantitative standards: These standards are set in physical or monetary terms.such standards
are set up in production, sales, finance, and other areas where Results can be measured in
precise quantitative terms. Quantitative standards may be further classified as follows:

(i)Cost standards which specify the cost limits within which results should be Achieved.

(ii)Revenue standards which represent the desired level of profits.

(iii)Time standards which specify the time limits within which work should be completed

(iv) Physical standards, e.g. quantity of output, units of sales, number of customers etc

(b) Qualitative standards: There are certain areas in which it is not possible to see Standards in
quantitative terms. Goodwill, employee morale, motivation, industrial Relations, etc., are such
areas. In these areas standards are laid down in intangible Terms. To be effective, performance
standards should satisfy the following requirements

(i) As far as possible standards should be set in precise quantitative test

(ii) Standards should be objective and accurate. They should be based on scientific Analysis
rather than on guesswork
(iii) Standards should be flexible, i.e., capable of being modified when the circumstances so
require. Acceptable range of deviations should be defined for (iv) Standards should be clear
(easily understandable) and meaningful to those Whom they are set.
(v) Standards should be reasonable (workable) and acceptable. They should be In consultation
with the employees concerned.
(vi) Standards should focus on some strategic points that reflect the total operation Every
standard.

(vii) Standards should be revised periodically to keep them upto date.

Measurement of performance: After performance standards are established, the next step is
the measurement of actual performance. Measurement of performance should be accurate
and reliable. It should be clear, simple and objective. Where quantitative standards are
established performance should be measured in quantitative terms. This will

Make evaluation easy and reliable. In other cases performance may be measured in term

Of opinion surveys and other qualitative terms. Wherever possible measurement should be

Done during performance. For example, each part is checked while assembling the product,

Photo 3

3. Comparing performance with standards: The third major step in the control proces involves
the comparison of actual performance with standard performance Su comparison will reveal
the deviation between actual and desired results. Comparison easy where standards have
been set in quantitative terms. In other cases where results are intangible direct personal
observation and reports may be used to identify defects or deficiencies in performance.
According to Ernest Dale, control reports must satisfy three criteria. First, control reports must
produce figures that are truly comparable from one period to another and from one section of
the business to another. Secondly, they must be co-ordinated so that they not only portray the
results in different sections of the business but also indicate the reasons for the results.
Thirdly, control reports must be presented in such a form that the manager can get the bird’s
eye view.l

4. Analysis of deviations: All deviations need not be brought to the notice of top management.
A range of deviations should be established and only cases beyond this range should be
reported. This is known as control by exception. When the deviations between standard and
actual performance are beyond the prescribed limit, an analysis of deviations should be made
to identify the causes of deviations. Then the deviations and causes are reported to the
managers who are authorized to take action.

5. Take corrective action: The final step in the control process is taking corrective action so that
deviations may not occur again and the objectives are achieved. Corrective action may be (a)
revision of standards, (b) change in the assignment of task. (c) training of employees, (d)
improvement in the techniques of direction, etc. At this stage a manager should avoid two
types of mistakes. First, taking corrective action when no action is required and secondly, not
taking action when action is required. The real test of a good control system is whether right
action is taken at the right time.

Highly Expected Case Studies:

A company was manufacturing ‘LED bulbs’ which were in great demand. It was found that the
target of producing 300 bulbs a day was not met by the employees. On analysis, it was found
that the workers were not at fault. Due to electricity failure and shortage of workers, the
company was not able to achieve the set targets and alternative arrangements were needed.
To meet the increased demand, the company assessed that approximately 88 additional
workers were required out of which 8 would work as heads of different departments and 10
would work as subordinates under each head. The required qualifications and job
specifications were also enlisted. It was also decided that necessary relaxation should be given
to encourage women, persons from backward and rural areas and persons with special
abilities to assume responsible positions in the organisation. All efforts were made to match
the ability of the applicants with the nature of work.