Controlling

Introduction

Controlling is the process of regulating organisational activities so that the actual performance conforms to expected organisational standards and goals.

It thus, Measures performance Compares performance Finds and corrects deviations Accomplishment of organisational goals

with minimum deviations

Nature of Control

Pervasive Closely associated with planning

function Associated with all other managerial

functions. Preventive and Corrective Device Positive Function Means, not an end

Importance

Helps in detecting mistakes Helps in maintaining complex

situations Helps face change and uncertaininty Helps in monitoring the actions Coordination Psychological Impact

Controlling and other functions

Planning as the basis: Reciprocal Function

Action as the essence Delegation as the key Information as the guide

Types of Control

Feed Forward Control Concurrent Control Feedback Control

Cybernatic and Non Cybernatic Control

Cybernatic Control Non Cybernatic Control

Control Process

Determining the areas of control Setting standards Measurement of performance Comparison of performance against

standards Correction of deviations

Focus of control

Focus of control is called the principle of critical point control which determines the critical points where actions should be monitored. Most significant elements in the operating system are selected and control is exercised only on those points/elements rather than the entire operation.

Features of Critical Points

Critical points relate to vital areas of operation which affect the entire operation.

It aims to prevent the damage rather than cure it.

Relates both to tangible as well as non tangible features

Management or Control by Exception

“Trying to control everything may end up in controlling nothing”

When the deviations are not significant ( when it is within the range of control) , the matter may not be reported to top managers. However, if deviations are significant ( beyond the acceptable range of errors) they should be reported up the hierarchy.

Techniques of ControllingTraditional Techniques Modern Techniques

Personal Observation Management Information System

Budgetary Control Management Audit

Break Even Analysis Network Techniques- PERT , CPM

Financial Statements Ratio Analysis