Definition: Control is a primary goal-oriented function of management in an organisation. 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. Control process involves the following steps as shown in the figure:
Controlling process thus regulates companies’ activities so that actual performance conforms to the standard plan. An effective control system enables managers to avoid circumstances which cause the company’s loss. Types of controlThere are three types of control viz.,
In an ever-changing and complex environment, controlling forms an integral part of the organization. Advantages of controlling
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. Reader InteractionsControlling is an important function of management which all the managers are required to perform. In order to contribute towards achievement of organisational objectives, a manager is required to exercise effective control over the activities of his subordinates. Thus, controlling can be defined as a managerial function to ensure that activities in an organisation are performed according to the plans. Controlling also ensures efficient and effective use of organisational resources for achieving the goals. Hence, it is a goal oriented function. Often, controlling and management control are considered same. However, there is a vast difference between the two. Controlling is one of the managerial functions while management control can be defined as a process which managers follow to perform the controlling function. Management control refers to setting of predetermined standards, comparing actual performance with these standards and, if required, taking corrective actions to ensure the achievement of organisational goals. Definition of controlling1. Donnell: "Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course." 2. Phillip Kotler : "control is the process of taking steps to bring actual results and desired results closer together." 3. Harold koontz: "controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished." Based on the above definitions the following natures or characteristics of controlling can be presented below1. Control is a Function of Management: Actually control is a follow-up action to the other functions of management performed by managers to control the activities assigned to them in the organisation. 2. Control is Based on Planning: Control is designed to evaluate actual performance against predetermined standards set-up in the organisation. Plans serve as the standards of desired performance. Planning sets the course in the organisation and control ensures action according to the chosen course of action in the organisation. Unless one knows what he wants to achieve in the organisation, he cannot say whether he has done right or wrong in the organisation. Control is said to be the Last step in management process but really speaking it begins with the setting up a plan in the organisation. Control implies the existence of plans or standards in the organisation. 3. Control is a Dynamic Process: It involves continuous review of standards of performance and results in corrective action, which may lead to changes in other functions of management. 4. Information is the Guide to Control: Control depends upon the information regarding actual performance. Accurate and timely availability of feedback is essential for effective control action. An efficient system of reporting is required for a sound control system. This requires continuing monitoring and review of operations. 5. The Essence of Control is Action: The performance of control is achieved only when corrective action is taken on the basis of feedback information. It is only action, which adjust performance to predetermined standards whenever deviations occur. A good system of control facilities timely action so that there is minimum waste of time and energy. 6. It is a Continuous Activity: Control is not a one-step process but a continuous process. It involves constant revision and analysis of standards resulting from the deviations between actual and planned performance. 7. Delegation is the key to Control: An executive can take corrective action only when he has been delegated necessary authority for it. A person has authority to control these functions for which he is directly accountable. Moreover, control becomes necessary when authority is delegated because the delegator remains responsible for the duty. Control standards help a manger expand his span of management. 8. Control Aims at Future: Control involves the comparison between actual and standards. So corrective action is designed to improve performance in future. 9. Control is a Universal Function of Management: Control is a basic or primary function of management. Every manager has to exercise control over the subordinates’ performance, no manager can get things done without the process of controlling. Once a plan becomes operational, follow-up action is required to measure progress, to uncover deficiencies and to take corrective actions. Therefore, control is an essential managerial function at every level. The process of management is incomplete without controlling. 10. Controlling is Positive: The function of controlling is positive. It is to make things happen i.e. to achieve the goal with instead constraints, or by means of the planned activities. Controlling should never be viewed as being negative in character. IMPORTANCE OF CONTROLLING1. Accomplishing Organisational Goals: Controlling helps in comparing the actual performance with the predetermined standards, finding out deviation and taking corrective measures to ensure that the activities are performed according to plans. Thus, it helps in achieving organisational goals. 2. Judging Accuracy of Standards: An efficient control system helps in judging the accuracy of standards. It further helps in reviewing & revising the standards according to the changes in the organisation and the environment. 3. Making Efficient Use of Resources: Controlling checks the working of employees at each and every stage of operations. Hence, it ensures effective and efficient use of all resources in an organisation with minimum wastage or spoilage. 4. Improving Employee Motivation: Employees know the standards against which their performance will be judged. Systematic evaluation of performance and consequent rewards in the form of increment, bonus, promotion etc. motivate the employees to put in their best efforts. 5. Ensuring Order and Discipline: Controlling ensures a close check on the activities of the employees. Hence, it helps in reducing the dishonest behavior of the employees and in creating order and discipline in an organization. 6. Facilitating Coordination in Action : Controlling helps in providing a common direction to the all the activities of different departments and efforts of individuals for attaining the organizational objectives. 7. Psychological pressure: control pressure puts a psychological on the individuals to perform better. Their performance is evaluated with the targets set for them. Everyone is likely to put on their best performance as they are aware that it will be. Evaluated. They may also have a pressure to achieve the results according to the standards fixed for them 8. corporate image : controlling functions helps to improve the overall performance of the organization progress in the business is measured in terms of planned standards-band actual performance, if there is any deviation then corrective measures are applied and desired results can be achieved. This builds a good corporate image and brings goodwill for the business. 9. Managerial responsibility : managerial responsibility is created through assignment of activities to various individuals. This process starts at the top level and goes to the lower level. A manager assigns some activities to his subordinates and controls them. Which function of management compares the actual performance with the planned performance?The process of comparing actual to planned performance and taking corrective action is called controlling.
What function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action?Thus, controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action, if necessary.
Which of the following involves comparing the actual performance with the desired performance?Expert-verified answer
(i) The management function which helps in finding out that the actual production of a worker is less than the set target is known as controlling. Here, comparing actual performance with standards or appraisal of performance is the step involved in the process of controlling.
What is the purpose of comparing the actual performance from the standard performance?Comparing Actual Performances with Standards
This comparison of the actual performances with the standards will make known the differences and deviations. This compares the degree of difference between the actual performance and the standard. In real case scenarios, these numbers almost never match up completely.
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Which function of management is defined as comparison of actual performance with planned performance?
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