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Prof. Preeti Bhaskar Symbiosis Centre For Management Studies, Noida

The document discusses controlling and its relationship to planning. It defines controlling as monitoring performance and taking action to ensure desired results. Controlling is characterized as an action-oriented, continuous, end function that is dynamic and exercised at all levels of management. The control process involves setting standards, measuring actual performance, comparing results to standards, and taking corrective action. Standards can be measurable like costs or output, or non-measurable like employee attitudes. Deviations between actual and planned performance are identified and the causes of deviations analyzed in order to take appropriate corrective actions. Planning and controlling are closely related and reinforce each other, with planning preceding controlling.

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58 views16 pages

Prof. Preeti Bhaskar Symbiosis Centre For Management Studies, Noida

The document discusses controlling and its relationship to planning. It defines controlling as monitoring performance and taking action to ensure desired results. Controlling is characterized as an action-oriented, continuous, end function that is dynamic and exercised at all levels of management. The control process involves setting standards, measuring actual performance, comparing results to standards, and taking corrective action. Standards can be measurable like costs or output, or non-measurable like employee attitudes. Deviations between actual and planned performance are identified and the causes of deviations analyzed in order to take appropriate corrective actions. Planning and controlling are closely related and reinforce each other, with planning preceding controlling.

Uploaded by

Shruthi Rj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Prof.

Preeti Bhaskar
Symbiosis Centre for Management Studies, Noida

Controlling
Meaning
Importance
Steps in the process of control
Relationship between Planning and
controlling
2

Controlling
A process of monitoring performance and
taking action to ensure desired results.
It sees to it that the right things happen,
in the right ways, and at the right time.

Action
Oriented

Continuous
process

End
Function

Dynamic
process

Characteristics
of
controlling
Forward
looking

Management
Function
Exercised at all
levels

Control Process
Setting Standards

Goals and
Objectives
Organizational
Divisional
Departmental

Measurement of actual Performance


Comparison of Actual Performance with
Standards

Taking Corrective Action

Individual
Follow Up

100

100
- 20
80

Step
1

Step

Step

Establish Objectives and


Standards
Standards are the plans or the targets
which have to be achieved in the course
of business function
They can also be called as the criterions
for judging the performance

Cont.
Standards generally are classified into two-:
Measurable or tangible - Those standards which
can be measured and expressed are called as
measurable standards. They can be in form of
cost, output, expenditure, time, profit, etc.
Non-measurable or intangible- There are
standards which cannot be measured
monetarily. For example- performance of a
manager, deviation of workers, their attitudes
towards a concern. These are called as in
tangible standards.
8

Measuring Actual Performance


Measurements must be accurate enough to
spot deviations or variances between what
really occurs and what is most desired.
Without measurement, effective control is
not possible.

Comparing Results with


Objectives and Standards
Comparison of actual performance with
the planned targets is very important.
Deviation can be defined as the gap
between actual performance and the
planned targets.
The manager has to find out two things
here- extent of deviation and cause of
deviation

10

For example, if stationery charges increase


by a minor 5 to 10%, it can be called as a
minor deviation.
On the other hand, if monthly production
decreases continuously, it is called as
major deviation.

11

Cont
Once the deviation is identified, a manager
has to think about

cause

various

which has led to deviation. The


causes can be Erroneous planning,
Co-ordination loosens,
Implementation of plans is defective, and
Supervision and communication is
ineffective, etc.
12

Taking Corrective Action


Once the causes and extent of deviations are known, the
manager has to detect those errors and take remedial
measures for it. There are two alternatives here1.Taking corrective measures for deviations which have
occurred;
2.After taking the corrective measures, if the actual
performance is not in conformity with plans, the manager
can revise the targets. It is here the controlling process
comes to an end.
Follow up is an important step because it is only
through taking corrective measures, a manager
can exercise controlling.

13

Relationship between
planning and controlling
Planning and controlling are two separate
fuctions of management, yet they are closely
related.
Without the basis of planning, controlling
activities becomes baseless and without
controlling, planning becomes a meaningless
exercise.
In absence of controlling, no purpose can be
served by. Therefore, planning and controlling
reinforce each other
14

Cont.
According to Billy Goetz, " Relationship between the
two can be summarized in the following points:
Planning precedes controlling and controlling succeeds
planning.
Planning and controlling are inseparable functions of
management.
Activities are put on rails by planning and they are
kept at right place through controlling.
The process of planning and controlling works on
Systems Approach which is as follows
:PlanningResultsCorrective Action
Planning and controlling are integral parts of an
organization as both are important for smooth running
of an enterprise.
Planning and controlling reinforce each other. Each
drives the other function of management.

16

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