CHAPTER EIGHT
CONTROLLING FUNCTION
Definition
• Controlling is determining what is being accomplished,
that is, evaluating the performance and if necessary
applying corrective measures.
• It is checking current performance against
predetermined standards.
• The concept of controlling is often confused with lack of
freedom.
• The opposite of control is not freedom but chaos or
anarchy. Control is fully consistent with freedom.
• Both autonomy (freedom) and accountability are
embedded in the concept of control.
The purpose of controlling
• to design information feedback systems,
• to set performance standards with planning
objectives
• to compare actual performances with those
predetermined standards,
• to determine whether there are any deviations & to
measure their significance, &
• to take any action required to assure that all
organizational resources are used properly
The Control Process
1. Establishing Standards
– Standards can be:-
• Managerial Standards:-
– such as reports, regulations, and performance
evaluations.
– focus only on the key areas & the kind of
performance required reaching specific goals.
• Technical Standards:-
– They specify the ‘what & how’ of the business,
– applied to production methods & processes; to
materials, machinery, safety equipment, parts &
supplies.
Cont…
2. Measuring Performance
– It is comparison between ‘what is’ & ‘what should
be’.
– Is about discovering the deviation.
3. Taking corrective action
– Determining precise action to be taken depends on
three things.
• the standard
• accuracy of the measurements
• the diagnosis of the person/device investigating
the causes of deviation.
Essentials of a Sound Controlling System
Suitable
Timely and forward looking
Objective and comprehensible
Flexible
Economical
Control by exceptions/management by exception
Prescriptive and operational
Acceptable to organization members
Motivation
Types of Controls
There are three basic types of control.
1. Prevention control
– It is sometimes called pre-action control.
– It is established to prevent problems from
occurring rather than to fix them after they happen.
2. Feed forward control
– The focus of control is on the ongoing activities
3. Feedback control
– It is sometimes called post-action control.
– Its focus is on the end results.
Control Characteristics
1. It is an end function (management function)
2. It is a continuous process
3. It is mainly a forward-looking
4. It is a universal function
5. It is a normative and positive force
6. It guides behavior
7. It allows organizations to cope with uncertainty
Making Control Effective
To be effective control:
– must be understandable
– must be flexible
– must be economical
– must be objective
– should recognize the importance of time element
– should provide useful and understandable
information
– should be forward-looking.
– should be selective
– should reflect the organization structure and needs
– should lead to corrective action
Principles of Control
1. The purpose of control
2. Future- oriented
3. Control responsibility
4. Efficiency of controls
5. Preventive control
6. Reflection of plans
7. Organizational suitability
8. Individuality of controls
9. Standards
10. Critical point-control
11. The expectation principle
12. Flexibility of control
13. Action
11
The End of The
Course!!
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