Controlling Function Of

Management
Controlling Function Of Management
 Definition: Control is a primary goal-oriented function
of management in an organisation. It is a process of
comparing the actual performance with the set
standards of the company to ensure that activities are
performed according to the plans and if not then taking
corrective action.
 Every manager needs to monitor and evaluate the
activities of his subordinates. It helps in taking corrective
actions by the manager in the given timeline to avoid
contingency or company’s loss.
 Controlling is performed at the lower, middle and upper
levels of the management.
Features of Controlling
 It helps in achieving organizational goals.
 Facilitates optimum utilization of resources.
 It evaluates the accuracy of the standard.
 It also sets discipline and order.
 Motivates the employees and boosts employee morale.
 Ensures future planning by revising standards.
 Improves overall performance of an organization.
 It also minimises errors.
Controlling and planning are interrelated for controlling gives an important
input into the next planning cycle. Controlling is a backwards-looking
function which brings the management cycle back to the planning function.
Planning is a forward-looking process as it deals with the forecasts about the
future conditions.
3 Types of Control
 Types of control
 Feedback Control: This process involves collecting information
about a finished task, assessing that information and improvising
the same type of tasks in the future.

 Concurrent control: It is also called real-time control. It checks

any problem and examines it to take action before any loss is
incurred. Example: control chart.

 Predictive/ feedforward control: This type of control helps to

foresee problem ahead of occurrence. Therefore action can
be taken before such a circumstance arises.
In an ever-changing and complex environment, controlling forms
an integral part of the organization.
Process of Controlling
Process of Controlling
 Process of Controlling
 Establishing standards: This means setting up of the target which
needs to be achieved to meet organisational goals eventually.
Standards indicate the criteria of performance.Control
standards are categorized as quantitative and qualitative
standards. Quantitative standards are expressed in terms of
money. Qualitative standards, on the other hand, includes
intangible items.

 Measurement of actual performance: The actual performance

of the employee is measured against the target. With the
increasing levels of management, the measurement of
performance becomes difficult.
Process of Controlling
 Comparison of actual performance with the standard:
This compares the degree of difference between the
actual performance and the standard.

 Taking corrective actions: It is initiated by the manager

who corrects any defects in actual performance.

Controlling process thus regulates companies’ activities so

that actual performance conforms to the standard plan.
An effective control system enables managers to avoid
circumstances which cause the company’s loss.
Errors in Control

Two basic types of error face the manager taking corrective action –

1. Taking action when no action is needed

2. Failing to take action when some action is needed
Advantages of controlling
 Saves time and energy

 Allows managers to concentrate on important tasks. This allows

better utilization of the managerial resource.

 Helps in timely corrective action to be taken by the manager.

 Managers can delegate tasks so routinely chores can be

completed by subordinates.

 On the contrary, controlling suffers from the constraint that the

organization has no control over external factors. It can turn
out to be a costly affair, especially for small companies.
Advantages of a management control system
MCS is adopted by business entities of all sizes and shapes as it has proved its worth

 Effective management control system facilitates the gathering of relevant data and
offering the information to management so that operations can continue seamlessly

 It communicates the goals of an organization in a precise and clear manner

 Ensures that the manager, as well as other employees, understand the

particular action plan to reach company goals

 The system helps to generate feedback at every stage

 It becomes possible to realign and make adjustments accordingly

 Helps in both forecasting and budgeting

 Implementing the system results in better coordination and communication that

ultimately leads to aligning the objectives of a company

 The management control system acts as a middleman between the employee and
the manager as it feeds necessary information of the former to the latter
Traditional Control Techniques
ADVANCED CONTROL TECHNIQUES
Principles of Control
 Strategic Point Control

 Feedback

 Flexible Control

 Organizational Suitability

 Self-control

 Direct Control

 Human Factor