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WELCOME

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CONTROLLING

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CONTROLLINGCONTROLLING is a process through whichmanagement ensures that the actualPerfomance conforms to the plan. It verifies

whether activities undertaken agree with theplan, instructions given and results expected.It discovers deviation from the resultsexpected. It also identifies the reasons for

deviations and suggest suitable actions toavoid their recurrence in future. As such,control provides the basis for future action.

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It reduces the chance of future mistakes and takes

preventive measures. In the absence of control,

planned activities may not be carried out in

accordance with methods and work may not be

done efficiently and effectively. Work may bedelayed and as result, the desired results not

achieved. Thus controlling function of

management is considered the key toorganizational success. It performed in all other

managerial functions. It is a continuous process

and action oriented.

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DEFINITION Controlling consist in verifying whether everythingoccurs in conformity with the plans adopted, theinstructions issued and the principles established. Ithas for its object to point out weakness and errors inorder to rectify them and prevent recurrence.

-Henry Fayol.

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OBJECTIVES To find out the progress of work.

To know the actual work performed.

To ensure that it is in conformity with thepredetermined standards.

To increase the efficiency by avoiding

wasteful actions. To take corrective actions, if need.

To co-ordinate different activities and effort.

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IMPORTANCE OF CONTROL

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1.EFFICIENT EXECUTIONControlling is an efficient pre-requisite for

efficient and effective implementation of

pre-determined plan. It helps inindentifying the deviations ,pinpointing thereasons for deviations and taking immediate

remedial measures.

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2.HELPS DELEGATIONControl can be meaningful only when it is

proceeded by proper delegation of authority.

Thus it is necessitates delegation of authorityto employees at lower level, and theydevelop a sense of involvement in the

working of the enterprise.

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3. BASIS FOR FUTURE ACTIONControl provides a basis for future action. It

reduces the chance of future mistakes by

suggesting preventive measures.

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4. FACILITATE DECISION MAKING

When ever there is deviation of actualperformance from the standard, controls

help in deciding future course of action. Italso facilitates follow-up decisions.

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5.FACILITATE S DECENTRALISATIONDecentralization of authority is necessary for

big organizations. Management cannot

delegate authority without ensuring propercontrols. Various control techniques permitdecentralization retaining control at the

higher levels.

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6. FACILITATES CO-ORDINATIONControl helps in coordinating the various

activities through unity of action.

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7. HELPS IN IMPROVING EFFICIENCYVarious control devices act as motivators to

managers. The performance of each

individual is regularly monitored andshortcomings corrected then and there.

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8. SIMPLIFIES SUPERVISIONControl simplifies supervision by pinpointing

significant deviations. It keeps the

employees under check and bringsdiscipline. Thus it simplifies the supervisionefforts.

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9. IMPROVES EMPLOYEE MORALEControl measures help in identifying the

deviations and identifying the reasons for

the same. This boosts the morale of workersbecause they know the obstacles in workperformance will be quickly removed.

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Process of control1. Establishment of standards.

2. Measurement of performance.

3. Comparing actual standards with thestandards.

4. Taking corrective action.

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1. ESTABLISHMENT OF STANDARDS

A standard act as a reference line or a basis forevaluation of actual performance. It servesas a criterion or a test of performance . In

the context of business enterprise it refersto the objectives to be achieved . In order todetermine the actual performance moves

along the right track, there have to becertain standards. Standards are the normstowards which performance has to bedirected and results achieved.

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2. MEASURMENT OF PERFORMANCEThe second control process step in the control

process is the measurement of performance

of various individuals, groups, departmentsor the whole enterprise. It means theevaluation of the work done and results

achieved.

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3. COMPARING THE ACTUALPERFORMANCE ITH STANDRADS

The next step is comparing actualperformance with standards. It involves two

steps:(1) Finding the extent of deviations

(2) Identifying the reasons for such deviations

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4.TAKING CORRECTIVE ACTIONS

Corrective actions are initiated on the basis offactors causing deviations from standards.

This ill involve taking decisions by the topmanagement like modification of plans,refixing of goals or standards, reassignment

or clarification of duties etc