CONTROLLING

JUSTINE ANNE GADAONI

GABRIEL DOMINGO
DHANNA JANE GUSI
GLENN OLIVER GERONIMO
 Meaning,
Nature and
Principles
 A management function aimed
at achieving defined goals within an
established timetable, and usually
understood to have three
components:
(1) setting standards,
(2) measuring actual performance,
(3) taking corrective action
 Controlling is one of the
managerial functions and it is
an important element of the
management process.
 After the planning,
organizing, staffing and
directing have been carried out,
the final managerial function of
controlling assures that the
activities planned are being
accomplished or not.
 Control can be defined
as the process of analysing
whether actions are being
taken as planned and taking
corrective actions to make
these to confirm to planning.
According to E.F.L. Brech:
“controlling is checking
performance against
predetermined standards
contained in the plans with a
view to ensuring adequate
progress and satisfactory
performance.”
 Ernest. Dale defines as “the
modern concept of control
envisages system that not only
provides a historical record of
what has happened and provides
data that enable the chief
executive or the departmental
head to take corrective steps if he
finds he is on the wrong track.”
 The managerial function of
controlling is defined by Koontz
and O’Donnell,” as the
measurement and correction to
the performance of activities of
subordinates in order to make sure
that enterprise objectives and the
plans devised to attain them are
being accomplished.”?
 George R. Terry
defined “controlling is
determining what is being
accomplished, that is evaluating
the performance and, if
necessary, applying corrected
measures so that the
performance takes place
according to plans.”
 Management control is the
process by which managers
assure that resources are
obtained and used effectively
and efficiently in the
accomplishment of the
organization's objectives.
 Further, it is defined as the
process by which managers in
the organization assure that
activities and efforts are
producing the desired
objectives in the organization.
These definitions imply three
main points about management
control.
 First, management
control is a process of
some inter-related and
sequential steps.
 Secondly, management
control in the organization aims
at effectiveness and efficiency
in the acquisition and utilization
of resources such as money,
materials, machinery and
manpower.
 Thirdly, management
control in the organization is
designed to further
objectives of the
organization.
 There have been less
arrested, convicted or jailed for
unjustifiable murder or for
notorious graft and corrruption. A
sense of national disappointment,
defenselessness, and
hopelessness grips the nation yet
the people no longer care.
Nothing is going to takes place,
bahala na.
 NATURE OF
CONTROLLING
1. Control is a Function of
Management:
Actually control is a follow-up
action to the other functions of
management performed by
managers to control the activities
assigned to them in the
organization.
2. Control is Based on Planning:
Control is designed to evaluate actual
performance against predetermined
standards set-up in the organization.
Plans serve as the standards of
desired performance. Planning sets
the course in the organization and
control ensures action according to the
chosen course of action in the
organization.
3. Control is a Dynamic
Process:
It involves continuous review of
standards of performance and
results in corrective action,
which may lead to changes in
other functions of management.
4. Information is the Guide to Control:
Control depends upon the information
regarding actual performance. Accurate
and timely availability of feedback is
essential for effective control action. An
efficient system of reporting is required
for a sound control system. This requires
continuing monitoring and review of
operations.
5. The Essence of Control is Action:
The performance of control is achieved
only when corrective action is taken on
the basis of feedback information. It is
only action, which adjust performance
to predetermined standards whenever
deviations occur. A good system of
control facilities timely action so that
there is minimum waste of time and
energy.
6. It is a Continuous Activity:
Control is not a one-step
process but a continuous
process. It involves constant
revision and analysis of
standards resulting from the
deviations between actual and
planned performance.
7. Delegation is the key to Control:
An executive can take corrective action
only when he has been delegated
necessary authority for it. A person has
authority to control these functions for
which he is directly accountable.
Moreover, control becomes necessary
when authority is delegated because the
delegator remains responsible for the
duty. Control standards help a manger
expand his span of management.
8. Control Aims at Future:
Control involves the comparison
between actual and standards.
So corrective action is designed
to improve performance in
future.
9. Control is a Universal Function of
Management:
Control is a basic or primary function of
management. Every manager has to
exercise control over the subordinates’
performance, no manager can get things
done without the process of controlling.
Once a plan becomes operational, follow-
up action is required to measure
progress, to uncover deficiencies and to
take corrective actions.
10. Controlling is Positive:
The function of controlling is
positive. It is to make things
happen i.e. to achieve the goal
with instead constraints, or by
means of the planned activities.
Controlling should never be
viewed as being negative in
character.
PRINCIPLES OF
CONTROLLING
1. Objectives:
Controls must positively
contribute to the achievement of
group goals by promptly and
accurately detecting deviations
from plans with a view to
making corrective action
possible.
2. Interdependence of Plans and
Controls:
The principles of interdependence
states that more the plans are clear,
complete and integrated, and the
more that controls are designed to
reflect such plans, the more
effectively controls will serve the
need of managers.
3. Control Responsibility:
According to this principle, the
primary responsibility for the
exercise of controls rests in the
manager charged with the
performance of the particular
plans involved.
4. Principal of Controls being in
Conformity to Organisation Pattern:
Controls must be designed so as to
reflect the character and structure of
plans. If the organisation is clear and
responsibility for work done is well
defined, control becomes more effective
and it is simple to isolated persons
responsible for deviations.
5. Efficiency of Controls:
Control techniques and
approaches are effectively
detect deviations from plans and
make possible corrective
actions with the minimum of
unsought consequences.
6. Future-oriented Controls:
It stresses that controls should
be forward looking. Effective
controls should be aimed at
preventing present and future
deviations from plans.
7. Individuality of Controls:
Control should be designed to meet
the individual requirements of
managers in the organization. Although
some control techniques and
information can be utilized in the same
form by various types of enterprises
and managers as a general rule
controls should be tailored to meet the
specific requirements.
8. Strategic Point Control:
Effective and efficient control
requires that attention to be
given to those factors which are
strategic to the appraisal of
performance.
9. The Exception Principle:
The exception principles whereby
exceptions to the standards are notified,
should be adopted. Note must be taken
of the varying nature of exceptions, as
“small” exceptions in certain areas may
be of greater significance than ‘larger’
exceptions elsewhere.
10. Principal of Review:
The control system should be
reviewed periodically. The review
exercise may take some or all the
points emphasised in the above
stated principles. Besides, flexibility
and economical nature or controls,
should not be lost sight of while
reviewing controls.
10. Principal of Review:
The control system should be
reviewed periodically. The review
exercise may take some or all the
points emphasised in the above
stated principles. Besides, flexibility
and economical nature or controls,
should not be lost sight of while
reviewing controls.
THE FACTORS TO BE
CONSIDERED IN THE
SIGNIFICANCE OF
CONTROLLING
1. Size of Business:
As the organizations grow in
size and diversity, they become
increasingly complex to manage
and hence the need for an
efficient system of controls
which is required to coordinate
activities and accomplish
integration.
2. Uncertainty:
Control forms a basis for future action.
Today’s world of rapid and sometimes
unpredictable changes makes the future
very uncertain. This makes planning very
difficult. Hence, control points are
necessary to check the progress of
activities and plans and make the
necessary and constructive adjustments
so as to accommodate any environmental
changes.
3. Decentralization Trends:
The current trends in decentralization
have brought the decision making
authority at lower level management
while accountability for results remains
with the upper management. Controls
serve the purpose of monitoring and
ensuring performance results while
delegating authority to subordinates.
4. Control is Vital for Morale:
Workers are happier when things are
under control. People make mistakes.
Intuitive decisions can result in errors of
judgments, especially when there are so
many variables involved. Such wrong
decisions can result in lowering of
morale. Control techniques reduce the
chances of errors in judgment thus
making the organisational environment
more stable. which is morale boosting.
 AIMS OF
CONTROLLING
1. To find out the progress of
the work—the work already
completed and the work in
progress.
2. To compare the actual
performance of the work at
different stages with the
particulars indicated in the
plans and policies.
3. To ascertain the time within
which the work is completed.
4. To verify quantity and testing
quality of the products.
5. To know the delays or
interruptions, if any, in the
performance of work and
trace the cause of such
delay or breakdown.
6. To see that causes of delay
are eradicated and
operations are suitably re-
scheduled.
7. To ensure that variations in
the contents and
methodology of work are
remedied by appropriate
adjustments.
8. To assess the cost of materials
and labor used and ensure that
direct costs and indirect costs
do not exceed the budget
provisions.
9. To pinpoint the responsibility on
individuals at different levels for
slackness, indifference, or
negligence, if any in the
expected levels of performance.
10. To evaluate the value of the
work performed and
recognize the contributions
of the staff towards
realization of the goals of the
enterprise.
11. To maintain discipline and
morale in the organization.
 BENEFITS OF
CONTROLLING
1. Control provides the basis
for future action in the
organization. Control will
reduce the chances of
mistakes being repeated in
future by suggesting
preventive methods.
2. Control facilities decision
making in the organization. The
process of control is complete
only when corrective measures
are taken in the organization.
This requires taking a right
decision as to what type of
follow up action is to be taken
while controlling.
3. An effective system of control
facilities decentralization of
authority only when corrective
measures are taken. This
requires taking a right decision
as to what type of follow up
action is to be taken regarding
control.
4. Control and planning go hand in
hand in the organization. Control is
the only means to ensure that the
plans are being implemented in real
sense and not some other else.
Control points out the shortcomings
of not only planning but also other
functions of management such as
organizing, staffing and directing in
the organization.
5. The existence of a control
system has a positive impact on
the behavior of the employees
in the organization. They are
cautious when performing the
duties in the organization and
they know that their supervisors
in the organization are
observing them.
6. Control helps in
coordination of the
activities of the various
departments in the
organization of the
enterprise by providing
them unity of direction.
LIMITATIONS OF
CONTROLLING
1. An organization cannot
control the external factors
such as government
policy, technological
changes, fashion changes
etc.
2. Control is an expensive
process because sufficient
attention has to be paid to
observe the performance of the
subordinates in the
organization. This requires an
expenditure of a lot of time and
effort to be made.
3. Control system loses its
effectiveness in the organization
when standards of performance
cannot be defined in quantitative
terms. For example, it is very
difficult to measure human
behavior and employee morale
in the organization.
4. The effectiveness of control
mainly depends on the acceptance
of subordinates in the organization.
They may resist control because
they may feel that it will reduce or
curtail their freedom while in duty. It
also loses its significance when it is
not possible to fix the accountability
of the subordinates.