Controlling

Control in management means setting standards, measuring actual performance and taking corrective action. It is the process of comparing actual performance with standards, identifying and analyzing deviations and taking corrective actions to meet the set standards. Control keeps the subordinates under check and brings discipline among them.

Concept of Controlling

Controlling is an important managerial function. It is the process of measuring actual performance and comparing it with standards to identify any deviation. The word control suggests checking, testing, regulating, verifying or adjusting. The control provides the basis for future action. It also helps in taking corrective action to meet the standards. Controlling is having a need to control other people's behavior. It discovers the deviations and takes corrective measures. It reduces the chances of mistakes being repeated in the future by providing preventive steps.

Controlling is the managerial functions of planning, staffing, organizing, implementing and directing. It helps to check the errors and take corrective action, so it is known as an important function of management. The standard deviations are minimized and the desired goals of the organization are achieved in the desired manner. ( WIKIPEDIA [The Free Encyclopedia])

In the words of Robbins and Coulter: "Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations."

Controlling is the process of assuring the performance as per standard. It is the comparison and verification process of the actual performance with the standard performance. It also analyzes whether the action taken is as planned and taking corrective action. It is known as the key to management for the implementation of the plan in the actual field. It also prevents and corrects deviation from plans.

Importance of Controlling

Controlling is an important and indispensable part of management. Proper control makes smoothness in the working of the organization. Controlling helps in checking mistakes and tells us how new challenges can be met or faced. Without, proper mechanism of control, the management process will be incomplete. Control keeps the subordinate under check and brings discipline among them. It reduces the chances of mistakes that may be repeated in the future by providing preventive steps. It is basically concerned with making sure that there is a proper accomplishment of functions. The various reasons for the importance of controlling are listed below:

1. Accomplishing Organizational Goals
   The process of controlling helps in accomplishing organizational goals or objectives. The controlling guides the activities of subordinates in achieving the goals. It ensures the use of human and material resources in the best possible manner so that there may be pre-determined objectives of the organization.
   
   
2. Judging Accuracy of the Standards
   A manager compares the actual work performance with the standards while performing the function of control. He tries to find out whether the accuracy of the standards is not more or less than the general standards. In case of the needs, they are redefined.
   
   
3. Improves Efficiency
   The organization sets the goal for the future which is not certain. So, controlling is the way that focuses on uncertainty and to attain the goals. Regular control shows the deviation in plan and actual achievement which helps to keep the staff on the right track.
   
   
4. Improve Employee Motivation
   Motivation is defined as the process of inspiring someone for doing something. Controlling makes all the employees work with complete dedication as they know that their work performance will be evaluated. Their identity will be established if the progress report is satisfactory in the organization.
   
   
5. Ensuring Order and Discipline
   The implementation of control helps to check all the undesirable activities like theft, corruption, delay in work and uncooperative attitude. Controlling ensures order and discipline in an organization. Ensuring order and discipline is also one of the importance of control.
   
   
6. Facilitate Coordination
   A good control system facilitates coordination among the departments and employees. Controlling facilitates coordination by providing the unity of direction. Controlling helps to secure co-ordination by avoiding the overlapping and duplication of works and promptly correcting the deviations.
   
   
7. Guides in Achieving Goals
   The process of control provides standards or norms for appraisal and management of actual performance. The essence of control is adherence to planning. It provides feedback information for taking remedial actions. Through, controlling managers keep the organization on the right track and ensure the attainment of planned goals.
   
   
8. Simplifies Supervision
   Controlling helps to simplify the task of the supervisor by printing out significant deviations from the standards of performance. It keeps the subordinates under check and facilitates to maintain and develop the discipline among them. Controlling helps to check and supervise the activity of the organization. Controlling makes the process of supervision easier.
   
   
9. Effective Delegation of Authority
   The effective delegation of authority helps in the proper system of control. The delegation of authority will be meaningless without an adequate system of control. Therefore, management must develop the proper technique of controlling the organization.
   
   
10. Corrective Action
    When the results do not match the objectives then corrective actions need to be taken to correct the weakness and problems. Since the corrective action is the essence of controlling. It is also one of the importance of control.
    
    
11. Smooth Operation of the Organization
    Controlling is the means of implementing the activities of the organization. So, the controlling system is required for the smooth operation of the organization. Controlling helps to correct significant deviations and smoothens the overall performance.
    
    
12. Cost
    Control ensures organizational efficiency and effectiveness. The proper control system can make a significant contribution to the reduction of operational costs as well as to the maximization of output. They eliminate waste and duplication of effort while lowering labor costs and increasing output quantity.
    
    
13. Better Planning
    Planning and controlling are important managerial functions. Control is the only means to ensure that plans are being implemented in the real sense. It also provides information on the basis of which better plans can be formulated in the future. Without controlling planning is meaningless. (Sarita Pujari)

The controlling helps to find out whether the product is being carried out with the orders received. If not, the causes of deviation are found out and corrective action is initiated in the organization. Therefore, the coordination between both the departments is established for the proper functioning of the organization.

Process of Controlling

Control is a continuous process. It is an integral part of management. It is concerned with monitoring and evaluating performance so as to obtain the best results from managerial efforts. It ensures work accomplishment according to plans. It is also the process of guiding and supervising the events in the organization. The process of control consists of the following elements:

• Setting of control standards
• Measurement of performance
• Comparing the actual and standard performance
• Taking corrective action

1. Setting of Control Standards
   The first step in any control process is to set the control standards against actual performance so the results can be controlled. Standards represent the criteria against which actual performance is measured. The standard of control may be quantitative or qualitative. Here, the goals are converted into quantity, value, man-hour, etc. Controlling becomes easy through the establishment of these standards because controlling is exercised on the basis of these standards. The standards which are measured and expressed are known as measurable standards. They can be in the form of cost, output, expenditure, time, profit, etc. The achievement of various targets can make specific persons responsible. The levels of achievement are also decided in advance. The control standards should also be consistent with the organizational goals.
   
   
2. Measurement of Performance
   After the establishment of standards, the next step is the measurement of actual performance. Finding out deviations becomes easy through measuring the actual performance. The measurement of performance level is sometimes easy and sometimes difficult. The tangible standards can be measured in an easy way as it can be expressed in units, cost, money terms, etc. If the performance of a manager has to be measured the quantitative measurement becomes difficult. The performance of a manager cannot be measured in quantities. The measurement of qualitative performance such as human relations, employee morale, etc. can be done through psychological tests and surveys. The measurement of performance is an important part of the control process.
   
   
3. Comparing Actual and Standard Performance
   The third step in the control process is the comparison of actual performance with the standard set. It is very important to compare the actual performance with the planned targets. The deviation can be defined as the gap between actual performance and the planned targets. When things are going as per plans or within the allowable limits then top management is not required to take any note of it. But on the other hand, if performance is not up to the level then top management is brought the notice to take corrective action. If the manager gives attention to every deviation then he will not be able to give enough time for important things. The major deviations like replacement of machinery, an appointment of workers, quality of raw material, rates of profits, etc. should be looked upon consciously. Minor deviations have to be ignored.
   
   
4. Taking Corrective Action
   The last step of the controlling process is to take corrective action on the result of the comparison. The purpose of control is not only to analyze the deviation but also to initiate remedial measures to take corrective actions. After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. The corrective action generally involves top management. Some people who are taking corrective action is not a part of the control. It is a separate managerial function. The overlapping function of control shows the unity of a manager’s job only. It shows that managing process should be integrated one. But, it is only through taking corrective measures, a manager can exercise control. 

Essentials of Effective Control

Every successful organization must employ control systems. Control ensures that everything is going on properly and according to plans. There are a number of essentials or requirements of adequate control, which a manager must always keep in mind. The effective control system has certain common characteristics. The importance of these characteristics varies with the situation. In general, effective control systems have the following characteristics.

1. Simple
   The control system that is not easily understood by the user has no value. So, the good control system should be easy, clear to understand and operate. The controlling techniques which are complicated such as complex mathematical formula, charts, graphs, and advanced statistical method should be avoided as far as possible because such techniques may fail to communicate the meaning.
   
   
2. Timeliness
   The information of management should be in proper time so that corrective actions can be taken in time. There are many problems in the organization which require immediate attention. If the information about such problems does not reach management at the right time, then such information may become useless and damage may occur. To get the corrective actions in proper time the information must also be in proper time. The outdated information and outdated controlling are like date-expired medicines which cannot give positive results.
   
   
3. Flexibility
   It is important that the controlling system should be flexible enough to keep pace with the changing conditions of the business. The effective control system must be flexible enough to adjust to any adverse changing condition of the business. Flexibility in the control system can be introduced by preparing alternative plans.
   
   
4. Pointing Out Exceptions at Crucial Points
   The control system points out deviations. But all deviations do not have equal impact. Therefore, an effective control system should direct attention to the same critical impact. Only significant deviations from standards whether the positive or negative, require management's attention. The more the manager concentrates on exceptions, the more efficient it will be the result of control.
   
   
5. Integration
   The people work in harmony with organizational policies when the controls are consistent with corporate values and culture. So, they are easier to enforce. The control system has become an integrated part of the organizational environment. It has become effective in every organization.
   
   
6. Economic Feasibility
   The controlling system should be economical and worth its costs. The controlling system should be economical because the expensive controlling system gives over financial burden to the organization which may affect profit. For example, a high-security system to safeguard nuclear secrets may be justified but the safeguard of office supplies to the same system in a store would not be economically justified.
   
   
7. Motivation
   Controlling is based on the performance of workers. A good system of control should be employee-centered rather than work-centered. A good control system should pay due attention to the human factor. The purpose of control should be to prevent mistakes and not to punish them until necessary. There must be direct contact between the controller to make the control system motivational.
   
   
8. Corrective Action
   A good control system should be able to take proper corrective actions to avoid the gap between standard and actual performance. It helps to improve future performance. An effective control system not only checks and identifies deviation, but it also helps in programming the solutions and correcting such deviation.
   
   
9. Emphasis on Exception
   A good controlling system should work according to the principle so that the important deviations are brought to the attention of management. This will ensure the managerial attention to direct towards error and not towards conformity. This will help to eliminate unnecessary and uneconomic supervision. It also helps in beneficial reporting and the wastage of managerial time.