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Concept-and-Process-of-Controlling-as-a-Management-Function

Controlling is a key management function that ensures organizational activities align with goals through monitoring, evaluating, and adjusting performance. The process involves setting performance standards, measuring actual performance, comparing it with standards, and taking corrective actions. It is essential for maintaining efficiency, quality, and informed decision-making within an organization.

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Michaela Nieves
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7 views

Concept-and-Process-of-Controlling-as-a-Management-Function

Controlling is a key management function that ensures organizational activities align with goals through monitoring, evaluating, and adjusting performance. The process involves setting performance standards, measuring actual performance, comparing it with standards, and taking corrective actions. It is essential for maintaining efficiency, quality, and informed decision-making within an organization.

Uploaded by

Michaela Nieves
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Concept and Process of Controlling as a Management Function

Concept of Controlling

Controlling is one of the key management functions aimed at ensuring that organizational
activities align with predetermined goals. It involves monitoring performance, evaluating results,
and making necessary adjustments to achieve desired outcomes.

Key Features of Controlling

1. Goal-Oriented: Focuses on achieving organizational objectives.


2. Pervasive: Applies at all levels of management.
3. Continuous: An ongoing process that adapts to dynamic environments.
4. Future-Oriented: While it evaluates past performance, it aims to prevent future
deviations.
5. Action-Oriented: Focuses on correcting deviations rather than just identifying them.

Importance of Controlling

1. Ensures organizational efficiency and effectiveness.


2. Helps maintain quality standards.
3. Identifies deviations from the plan and rectifies them.
4. Minimizes risks and wastage of resources.
5. Enhances decision-making by providing performance insights.

Process of Controlling

The controlling process consists of four systematic steps:

1. Setting Performance Standards

 Standards are benchmarks or criteria used to measure performance.


 Standards can be quantitative (e.g., sales targets, production units) or qualitative (e.g.,
customer satisfaction, employee behavior).
 Standards should align with the organization’s goals and objectives.

Example: A company sets a goal of producing 1,000 units of a product per week with less than
2% defect rate.
2. Measuring Actual Performance

 Involves collecting data to assess how well employees, departments, or the organization
perform against the standards.
 Tools: Reports, audits, performance appraisals, surveys, or key performance indicators
(KPIs).

Example: Weekly production reports show the number of units produced and the percentage of
defective items.

3. Comparing Actual Performance with Standards

 Evaluates the gap or variance between actual performance and set standards.
 A positive variance indicates performance exceeding expectations, while a negative
variance highlights underperformance.
 The comparison must be accurate and based on reliable data.

Example: If actual production is 950 units instead of 1,000, the variance is 50 units.

4. Taking Corrective Actions

 Corrective actions are steps taken to address deviations from the standards.
 May involve revising strategies, improving processes, retraining employees, or
reallocating resources.
 The goal is to bring performance back on track without disrupting overall operations.

Example: To address the production shortfall, the manager might add more shifts or upgrade
machinery.

Types of Control

1. Feedforward Control: Prevents problems by monitoring inputs and processes before


they occur.
2. Concurrent Control: Involves real-time monitoring to address issues as they happen.
3. Feedback Control: Evaluates outputs after the process is complete to inform future
decisions.
Summary

Controlling ensures that the organization's plans are executed effectively by monitoring,
measuring, and correcting performance. It is a dynamic process integral to achieving
organizational success and responding to changing circumstances

Written Works Assessment: Controlling as a Management Function

I. Multiple Choice Questions (10 points)

1. Which of the following best defines the function of controlling in management?


A. Setting organizational goals and objectives.
B. Monitoring, evaluating, and ensuring performance meets set standards.
C. Motivating employees to achieve desired results.
D. Organizing resources to accomplish tasks.

2. What is the first step in the controlling process?


A. Measuring actual performance.
B. Comparing performance with standards.
C. Setting performance standards.
D. Taking corrective actions.

3. Why is controlling considered a future-oriented function?


A. It involves predicting employee behavior.
B. It focuses on preventing deviations in future performance.
C. It only analyzes past performance.
D. It sets long-term goals for the organization.

4. Feed forward control is characterized by:


A. Monitoring outputs after the process is complete.
B. Taking immediate actions during operations.
C. Preventing issues before they occur.
D. Correcting deviations after standards are met.

5. Which of the following is an example of corrective action in the controlling process?


A. Analyzing weekly sales data.
B. Revising a marketing strategy to improve sales.
C. Setting a new sales target for the team.
D. Monitoring competitors’ activities.
II. True or False (5 points)

6. Controlling is only necessary at the top management level.

7. Comparing actual performance with standards is the final step in the controlling
process.

8. Performance standards can be both quantitative and qualitative.

9. Feedback control focuses on analyzing outputs to improve future performance.

10. Controlling is a one-time activity performed at the end of a project.

III. Short Answer Questions (10 points)

11. Why is setting performance standards crucial in the controlling process?

12. Provide one example of how feed forward control can be applied in a manufacturing
business.

13. What actions can a manager take if actual performance consistently falls short of the
standards?

14. Explain the importance of comparing actual performance with standards.

15. How does feedback control differ from concurrent control?

IV. Essay Question (5 points)


16. Discuss the role of controlling in ensuring the success of an organization. Provide
examples to support your answer.

Scoring Guide

 Multiple Choice: 10 points (1 point each)


 True or False: 5 points (1 point each)
 Short Answer: 10 points (2 points each)
 Essay Question: 5 points

Total: 30 points

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