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CONTROLING

The document discusses the control process in management. It defines controlling as measuring performance and taking action to ensure desired results. The control process has four steps: 1) establish objectives and standards, 2) measure actual performance, 3) compare results to objectives and standards, and 4) take corrective action as needed. The document provides details on each step, such as how to establish output and input standards, accurately measure performance, and identify the need for corrective action based on comparisons. Benefits and limitations of the control process are also outlined.

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Aum Goel
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25 views12 pages

CONTROLING

The document discusses the control process in management. It defines controlling as measuring performance and taking action to ensure desired results. The control process has four steps: 1) establish objectives and standards, 2) measure actual performance, 3) compare results to objectives and standards, and 4) take corrective action as needed. The document provides details on each step, such as how to establish output and input standards, accurately measure performance, and identify the need for corrective action based on comparisons. Benefits and limitations of the control process are also outlined.

Uploaded by

Aum Goel
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
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CONTROLLING

Prepared by: Aum Goel 23/BBA/36


Ashutosh Sharma 23/BBA/33
What is the control process?

 Controlling
– The process of measuring performance and taking
action to ensure desired results.
– Has a positive and necessary role in the management
process.
– Ensures that the right things happen, in the right way, at
the right time.
– Organizational learning and after-action review.

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What is the control process?

 Steps in the control process:


– Step 1 — establish objectives and standards.
– Step 2 — measure actual performance.
– Step 3 — compare results with objectives and
standards.
– Step 4 — take corrective action as needed.
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Four steps in the control process.

4
What is the control process?

 Step 1 — establishing objectives and


standards
– Output standards
• Measure performance results in terms of quantity,
quality, cost, or time.
– Input standards
• Measure effort in terms of amount of work
expended in task performance.
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What is the control process?

 Step 2 — measuring actual performance


– Goal is accurate measurement of actual performance
results and/or performance efforts.
– Must identify significant differences between actual
results and original plan.
– Effective control requires measurement.

6
What is the control process?

 Step 3 — comparing results with objectives


and standards
– Need for action reflects the difference between
desired performance and actual performance
– Comparison methods:
• Historical comparison
• Relative comparison
• Engineering comparison
7
What is the control process?

 Step 4 — taking corrective action


– Taking action when a discrepancy exists
between desired and actual performance.
– Management by exception
• Giving attention to situations showing the greatest
need for action.
• Types of exceptions
– Problem situation
– Opportunity situation

8
The roles of planning and controlling in the
management process.

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Benefits
 1. Accomplishing Organizational Goals
 The controlling function is an accomplishment of measures that further makes progress
towards the organizational goals & brings to light the deviations, & indicates corrective
action. Therefore it helps in guiding the organizational goals which can be achieved by
performing a controlling function.
 2. Judging Accuracy of Standards
 A good control system enables management to verify whether the standards set are
accurate & objective. The efficient control system also helps in keeping careful and
progress check on the changes which help in taking the major place in the organization
& in the environment and also helps to review & revise the standards in light of such
changes.
 3. Making Efficient use of Resources
 Another important function of controlling is that in this, each activity is performed in
such manner so an in accordance with predetermined standards & norms so as to ensure
that the resources are used in the most effective & efficient manner for the further
availability of resources.
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Limitations
 1. Difficulty in Setting Quantitative Standards
 When an organisation cannot define its standards in quantitative terms, the controlling
system becomes less effective. For example, it is difficult to measure the human behaviour
of employees in quantitative terms, which makes it difficult for the firm to measure their
performance from the standards.
 2. Little Control on External Factors
 The controlling system of an organisation can effectively control the internal factors;
however, it is not easy to control the external factors of an organisation. For example, a firm
can check and control any change in its production (internal factor), but cannot keep a check
on the changing technological advancement, government policies, etc. (external factors).
 3. Resistance from employees
 The effectiveness of the controlling system highly depends on whether or not the employees
have accepted the process. It means that if the employees think of the control system as a
restriction on their freedom, they will resist the system. For example, the employees of an
organisation might object when they are kept under various restrictions making them feel
their freedom is being taken.

11
THANKYOU

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