Controlling Definition:

Control is a primary goal-oriented function of management in an organization. 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.
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.

TYPES OF CONTROL:
There are three 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. Con-current 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. Advantages of controlling Saves time and
energy Allows managers to concentrate on important tasks. This allows better utilization
of the managerial resources. 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.

WHY CONTROLLING IS IMPORTANT?

(1) Accomplishing Organizational Goals:
The controlling process is implemented to take care of the plans. With the help of
controlling, deviations are immediately detected and corrective action is taken.
Therefore, the difference between the expected results and the actual results is reduced
to the minimum. In this way, controlling is helpful in achieving the goals of the
organization.
(2) Judging Accuracy of Standards:
While performing the function of controlling, a manager compares the actual work
performance with the standards. He tries to find out whether the laid down standards
are not more or less than the general standards. In case of need, they are redefined.

(3) Making Efficient Use of Resources:

Controlling makes it possible to use human and physical resources efficiently.
Under controlling, it is ensured that no employee deliberately delays his work
performance. In the same way, wastage in all the physical resources is checked.

(4) Improving Employee Motivation:

Through the medium of controlling, an effort is made to motivate the employees.
The implementation of controlling makes all the employees to work with complete
dedication because they know that their work performance will be evaluated and if the
progress report is satisfactory, they will have their identity established in the
organization.

(5) Ensuring Order and Discipline:

Controlling ensures order and discipline. With its implementation, all the
undesirable activities like theft, corruption, delay in work and uncooperative attitude are
checked.

(6) Facilitating Coordination in Action:

Coordination among all the departments of the organization is necessary in order
to achieve the organizational objectives successfully. All the departments of the
organization are interdependent. For example, the supply of orders by the sales
department depends on the production of goods by the production department.

Through the medium of controlling an effort is made to find out whether the
production is being carried out in accordance with the orders received. If not, the causes
of deviation are found out and corrective action is initiated and hence, coordination
between both the departments is established.

4 Steps of Control Process are;

1. Establishing standards and methods for measuring performance.
2. Measuring the performance.
3. Determining whether performance matches the standard.
4. Taking corrective action.
1. Establishing Standards and Methods for Measuring Performance
Standards are, by definition, simply the criteria of performance.
They are the selected points in an entire planning program at which performance is
measured so that managers can receive signals about how things are going and thus
do not have to watch every step in the execution of plans.
Standard elements form precisely worded, measurable objectives and are
especially important for control.
In an industrial enterprise, standards could include sales and production targets,
work attendance goals, safety records etc.
In service industries, on the other hand, standards might include a number of
time customers have to wait in the queue at a bank or the number of new clients
attracted by a revamped advertising campaign.

2. Measuring the Performance

The measurement of performance against standards should be done on a
forward-looking basis so that deviations may be detected in advance of their occurrence
and avoided by appropriate actions.
If standards are appropriately drawn and if means are available for determining
exactly what subordinates are doing, appraisal of actual or expected performance is
fairly easy.
But there are many activities for which it is difficult to develop accurate
standards, and there are many activities that are hard to measure.
It may be quite simple, for example, to establish labor-hour standards for the
production of a mass-produced item and it may be equally simple to measure
performance against these standards, but in the less technical kinds of work.
For example, controlling the work of the industrial relations manager is not easy
because definite standards cannot be easily developed.
The superior of this type of managers often rely on vague standards, such as the
attitude of labor unions, the enthusiasm, and loyalty of subordinates, the index of labor
turnover and/or industrial disputes etc. In such cases, the superior’s measurements are
often equally vague.

3. Determining whether Performance Matches the Standard

It is an easy but important step in the control process. It involves comparing the
measured results with the standards already set.
If performance matches the standard, managers may assume that “everything is
under control”. In such a case the managers do not have to intervene in the
organization’s operations.

4. Taking Corrective Action

This step becomes essential if performance falls short of standards and the
analysis indicates that corrective action is required. The corrective action could involve
a change in one or more activities of the organization’s operations.
For example, the branch manager of a bank might discover that more counter
clerks are needed to meet the five-minute customer-waiting standard set earlier.
Control can also reveal inappropriate standards and in that case, the corrective
action could involve a change in the original standards rather than a change in
performance.
It needs to be mentioned that, unless managers see the control process through
to its conclusion, they are merely monitoring performance rather than exercising control.
The emphasis should always be on devising constructive ways to bring performance up
to a standard rather than on merely identifying past failure.

9 CHARACTERISTIC OF AN EFFECTIVE CONTROL SYSTEM

1. Accuracy:
Effective controls generate accurate data and information. Accurate information
is essential for effective managerial decisions. Inaccurate controls would divert
management efforts and energies on problems that do not exist or have a low priority
and would fail to alert managers to serious problems that do require attention.

2. Timeliness:
There are many problems that require immediate attention. If information about
such problems does not reach management in a timely manner, then such information
may become useless and damage may occur. Accordingly, controls must ensure that
information reaches the decision makers when they need it so that a meaningful
response can follow.

3. Flexibility:
The business and economic environment is highly dynamic in nature.
Technological changes occur very fast. A rigid control system would not be suitable for
a changing environment. These changes highlight the need for flexibility in planning as
well as in control.

Strategic planning must allow for adjustments for unanticipated threats and
opportunities. Similarly, managers must make modifications in controlling methods,
techniques and systems as they become necessary. An effective control system is one
that can be updated quickly as the need arises.

4. Acceptability:
Controls should be such that all people who are affected by it are able to
understand them fully and accept them. A control system that is difficult to understand
can cause unnecessary mistakes and frustration and may be resented by workers.

Accordingly, employees must agree that such controls are necessary and
appropriate and will not have any negative effects on their efforts to achieve their
personal as well as organizational goals.

5. Integration:
When the controls are consistent with corporate values and culture, they work in
harmony with organizational policies and hence are easier to enforce. These controls
become an integrated part of the organizational environment and thus become effective.

6. Economic feasibility:
The cost of a control system must be balanced against its benefits. The system
must be economically feasible and reasonable to operate. For example, a high security
system to safeguard nuclear secrets may be justified but the same system to safeguard
office supplies in a store would not be economically justified. Accordingly the benefits
received must outweigh the cost of implementing a control system.

7. Strategic placement:
Effective controls should be placed and emphasized at such critical and strategic
control points where failures cannot be tolerated and where time and money costs of
failures are greatest.
 The objective is to apply controls to the essential aspect of a business where a
deviation from the expected standards will do the greatest harm. These control areas
include production, sales, finance and customer service.

8. Corrective action:
An effective control system not only checks for and identifies deviation but also is
programmed to suggest solutions to correct such a deviation. For example, a computer
keeping a record of inventories can be programmed to establish “if-then” guidelines. For
example, if inventory of a particular item drops below five percent of maximum inventory
at hand, then the computer will signal for replenishment for such items.

9. Emphasis on exception:
A good system of control should work on the exception principle, so that only
important deviations are brought to the attention of management, In other words,
management does not have to bother with activities that are running smoothly. This will
ensure that managerial attention is directed towards error and not towards conformity.
This would eliminate unnecessary and uneconomic supervision, marginally beneficial
reporting and a waste of managerial time.
 Republic of the Philippines
Provincial Government of Laguna
LAGUNA UNIVERSITY
Laguna Sports Complex, Brgy. Bubukal, Sta. Cruz, Laguna

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IN
ENGINEERING MANAGEMENT

MEMBERS:

JHAMIL RESTAR
JOHN JOHN MARFAL
MARC CYLON PEREZ
JOSHUA DELOS ANGELES

SUBMITTED TO:
ENGR. DANIELLE JOY L. ALCANTARA