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Chapter 7 - Controlling Function

The document discusses the controlling function of management. It defines controlling, explains why it is needed and outlines the control process and types of controls. It also discusses characteristics of an effective control system.

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abdu
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17 views

Chapter 7 - Controlling Function

The document discusses the controlling function of management. It defines controlling, explains why it is needed and outlines the control process and types of controls. It also discusses characteristics of an effective control system.

Uploaded by

abdu
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 7

THE CONTROLLING FUNCTION


MEANING AND NEED FOR CONTROL

 Controlling is a process of monitoring performance, comparing with goals, and


correcting work performance as needed to make sure performance meets objectives.

If done well, it ensures that the overall directions of individuals and groups are
consistent with short and long range plans.

 Ensures that the right things happen, in the right way, at the right time.

 Planning and Controlling are two inseparable functions of management. Without


planning, controlling is a meaningless exercise and without controlling, planning is
useless. Planning presupposes controlling and controlling succeeds planning.
Control is needed
 To adapt to change & uncertainty
 To discover irregularities & errors
 To reduce costs, increase productivity, or add value
 To detect opportunities
 To deal with complexity
THE CONTROL PROCESS
Steps in the control process:
Step 1 — Determine Areas to Control
Step 2— Establish objectives and standards.
Step 3 — Measure actual performance.
Step 4 — Compare results with objectives and standards.
Step 5 — Take corrective action as needed
Step 1 — Determine Areas to Control
 It would be impossible to control all activity in an organization. Consequently,
it is important for the manager to decide which activities should have the
control process applied.

 Critical control points include all the areas of an organization's operations that
directly affect the success of its key operations, areas where failures can not be
tolerated, and costs in time and money are greatest.
Step 2- Establish objectives and standards
 This means setting up of the target which needs to be achieved to meet
organizational goals. Standards indicate the criteria of performance.

 Performance objectives are defined and the standards for measuring them are
set.

 There are two types of standards:


 Output Standards - measures performance results in terms of
quantity, quality, cost, or time.
 Input Standards - Measure effort in terms of amount of work
expended in task performance.
Step 3 — Measure actual performance
 Measurements must be accurate enough to spot deviations or variances between
what really occurs and what is most desired.
 Effective control requires measurement.

Step 4 — Compare results with objectives and standards.


 Need for action reflects the difference between desired performance and actual
performance.

Step 4 — taking corrective action


 Taking action when a discrepancy exists between desired and actual performance.
 If performance fulfills expectations (meets standards), no control problem exists.
However, if performance exceeds or fails to meet expectations, further investigation is
required to determine the cause.
TYPES OF CONTROL

 Some major control types are based on timing. These include feed forward
controls, concurrent controls, and feedback controls.

1. Feedforward controls/ Preliminary


Employed before a work activity begins.
Ensures that:
 Objectives are clear.
 Proper directions are established.
 Right resources are available.
Focuses on quality of resources
2. Concurrent controls / steering controls
 Focus on what happens during work process.
 Monitor ongoing operations to make sure they are being done according to plan.
 Can reduce waste in unacceptable finished products or services.

3. Feedback controls/ Post-action


 Take place after work is completed.
 Focus on quality of end results.
 Provide useful information for improving future operations .
 Based on the degree to which human discretion is part of the system A basic
control process can be either cybernetic or non-cybernetic

 Cybernetic control system is a self-regulating control system that, once it


is put into operation, can automatically monitor the situation. One that is
self-contained in its performance monitoring and correction capabilities.

 Non-cybernetic control system is a control system that relies on human


discretion as a basic part of its process .
CHARACTERISTICS OF AN EFFECTIVE CONTROL SYSTEM

The best controls in Organizations have the following characteristics

 Future–Oriented  Monitor able


 Multidimensional  Organizationally Realistic
 Economically Realistic/ Cost Effective  Flexible
 Accurate  Focus on Critical Control Points
 Acceptable to Organization Members  Easy to Understand
 Timely  Emphasis on Exception
 Reliability and Validity  Over-control versus Under-control

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