CONTROLLING 1. Establishing standards.

❖ It would be helpful on the part of the

“ In an undertaking, control consists in
manager to first focus on what he hopes
verifying whether everything occurs in
to achieve.
conformity with the plan adopted, the
➢ Standards are desired levels
instructions issued, and principles established.
of performance and constitute
It has for object to point out weaknesses and
the foundation of the control
errors in order to rectify them and prevent
process.
recurrence. It operates on everything, things,
➢ These serve as the criteria
people, actions.”
against which the performance
-Henry Fayol (General and Industrial is evaluated by the manager.
Management, p.107)
2. Measuring performance against the
When there’s no control… established standards.
 NET LOSS FOR THE PAST TEN Criteria:
YEARS
Quality
 99% OF WORKERS RESIGNED
A performance for each
 MAIN FACTORY CAUGHT BY FIRE group/department can be controlled base on
What is controlling? quality of its output. This is parallel to
effectiveness.
 is the process of monitoring, comparing,
correcting performance and taking Quantity
action to ensure desired results. This can be used as the control tool by
 It sees to it that the right things happen, finding out the amount or number of the
in the right ways, and at the right time. output of the group/department. This parallel
to efficiency.
 “Management control seeks to
compel events to conform to Time
plans.” This can be employed by formulating a
Billy E. Goetz, Management timetable for achieving certain goals at
Planning and Control,p.229 certain dates.

 “...control implies the existence of Cost

goals and plans; no manager can The cost of production can be
control without them. predetermined by using the object tool as a
Koontz, O'Donnell, Principles of guide to actual production efforts and keep
Management ,p.582 them within desired and expected units.

Compel – oblige someone to do something.

Conform - comply 3. Comparison of actual performance.

Importance of Controlling ➢ This is the core of the control

process.
The value of the control function can be seen in
three specific areas: ➢ This involves checking to determine
whether the actual performance
1. Planning meets the predetermined or
2. Empowering employees planned performance.

3. Protecting the workplace ➢ The comparing step determines the

variation between actual performance
The Control Process and a standard.
1. Establishing standards. ➢ Acceptable range of variation.
2. Measuring performance against the
established standards.  Four approaches managers use to
3. Comparison of actual performance. measure and report actual performance
4. Taking corrective action when and are:
where deviations from the standards 1. Personal observation
occur.
5. Making recommended corrective 2. Statistical reports
actions are followed through. 3. Oral reports
4. Written reports
4. Taking corrective action when and Characteristics of Control
where deviations from the standards
 Attuned to the activity.
occur.
 Deviations must be identified quickly.
 Control is not confined to measuring
performance against standards without  Control must be forward-looking.
doing anything when performance falls
short.  Control must be strategically oriented.

 Three possible course of action  Control must be flexible.

managers can do:  Control should be economical.
1. Do nothing.  Control should be easy to understand.
2. Correct the actual performance.  Control should indicate the corrective
3. Revise the standards. action.

5. Making recommended corrective

actions are followed through.
(Follow-Through)

➢ Often the control process fails because

the corrective actions are not followed
through.
➢ The responsibility for that corrective
action is not over just by making this
recommendation.

Types of Control
 Feedforward control
 Concurrent
 Feedback Control

Uses of Management Controls

 Prevent crises.
 Standardization outputs
 Appraise employee performance.
 Update plans
 Protect an organizations asset.