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Control

The document discusses control and the controlling process. It defines control as measuring and correcting subordinate performance to ensure organizational objectives are achieved. The purposes of controlling are to make plans effective, ensure consistency, improve effectiveness and efficiency, provide feedback, and aid decision making. The controlling process involves establishing standards, measuring actual performance, comparing performance to standards, and taking corrective actions when needed. An effective control system is reflective of needs, forward-looking, prompt, objective, flexible, economical, simple, and motivating. Controlling also includes strategic control to evaluate strategy implementation and make adjustments, as well as operational control over individual and group performance.

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Gaurav Khemka
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52 views

Control

The document discusses control and the controlling process. It defines control as measuring and correcting subordinate performance to ensure organizational objectives are achieved. The purposes of controlling are to make plans effective, ensure consistency, improve effectiveness and efficiency, provide feedback, and aid decision making. The controlling process involves establishing standards, measuring actual performance, comparing performance to standards, and taking corrective actions when needed. An effective control system is reflective of needs, forward-looking, prompt, objective, flexible, economical, simple, and motivating. Controlling also includes strategic control to evaluate strategy implementation and make adjustments, as well as operational control over individual and group performance.

Uploaded by

Gaurav Khemka
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Unit- V

Control
Definition
• Control is measurement & correction of
the performance of activities of
subordinates in order to make sure that
enterprise objectives & plans devised to
attain them are being accomplished.
- Koontz & O’ Donnel
Purpose of Controlling
• The six major purposes of controls are as follows:
• Controls make plans effective. Managers need to measure
progress, offer feedback, and direct their teams if they want to
succeed.
• Controls make sure that organizational activities are consistent.
Policies and procedures help ensure that efforts are integrated.
• Controls make organizations effective. Organizations need
controls in place if they want to achieve and accomplish their
objectives.
• Controls make organizations efficient. Efficiency probably
depends more on controls than any other management function.
• Controls provide feedback on project status. Not only do they
measure progress, but controls also provide feedback to participants
as well. Feedback influences behavior and is an essential ingredient
in the control process.
• Controls aid in decision making. The ultimate purpose of controls
is to help managers make better decisions. Controls make managers
aware of problems and give them information that is necessary for
decision making.
Controlling Process
• Establish control standards. Within an organization's overall
strategic plan, managers define goals for organizational
departments in specific, operational terms that include standards
of performance to compare with organizational activities. In brief
it is to identify the desired results
• Measure actual performance. Most organizations prepare
formal reports of performance measurements that managers
review regularly. These measurements should be related to the
standards set in the first step of the control process. For
example, if sales growth is a target, the organization should have
a means of gathering and reporting sales data.
• Compare performance with the standards. This step
compares actual activities to performance standards. When
managers read computer reports or walk through their plants,
they identify whether actual performance meets, exceeds, or falls
short of standards. Typically, performance reports simplify such
comparison by placing the performance standards for the
reporting period alongside the actual performance for the same
period and by computing the variance—that is, the difference
between each actual amount and the associated standard.
Cont……
•Take corrective actions. When performance deviates
from standards, managers must determine what changes, if any,
are necessary and how to apply them. In the productivity and
quality-centered environment, workers and managers are often
empowered to evaluate their own work. After the evaluator
determines the cause or causes of deviation, he or she can take
the fourth step—corrective action. The most effective course
may be prescribed by policies or may be best left up to
employees' judgment and initiative.
These steps must be repeated periodically until the
organizational goal is achieved
Essentials of Effective Control
System
• Reflecting org. needs
• Forward looking
• Promptness in Reporting Deviations
• Pointing out Exceptions in Critical point
• Objective
• Flexible
• Economical
• Simple
• Motivating
• Reflecting Org. pattern
Types of Controlling
• Strategic control, the process of evaluating
strategy, is practiced both after the strategy is
formulated and after it is implemented.
Continuously evaluating the strategy
implementation, by taking the consideration of
change in envir.( I & E) & taking corrective
actions to adjust the strategy to the new
requirements.
Operational control is concerned individual and
group performance as compared with the
individual and group role prescriptions required
by organizational plans.

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