What is

Controlling?
The process of measuring performance
and taking action to ensure desired
results.
It helps ensure that objectives and
accomplishments are consistent with
one another throughout an
organization.
It helps maintain compliance with
essential organizational rules and
policies.
Done well, it ensures that the overall
directions of individuals and groups are
Why is controlling
important?
• Controlling is an important function of
management. Its importance becomes apparent
when we find that it is needed in all the functions
of management. Controlling checks mistakes and
tells us how new challenges can be met or faced.
The success of the organisation thus hinges on
the effective controlling.
• Controlling is the last function of the
management process which is performed after
planning, organising, staffing and directing. On
the other hand, management control means the
process to be adopted in order to complete the
function of controlling.
The importance of controlling becomes clear from the following
facts:
• (1) Accomplishing Organisational Goals:
The controlling process is implemented to take
care of the plans. With the help of controlling,
deviations are immediately detected and
corrective action is taken. Therefore, the
difference between the expected results and the
actual results is reduced to the minimum. In this
way, controlling is helpful in achieving the goals of
the organisation.

• (2) Judging Accuracy of Standards:

While performing the function of controlling, a
manager compares the actual work performance
with the standards. He tries to find out whether
the laid down standards are not more or less
than the general standards. In case of need, they
• (3) Making Efficient Use of Resources:
Controlling makes it possible to use human and
physical resources efficiently. Under controlling, it is
ensured that no employee deliberately delays his
work performance. In the same way, wastage in all
the physical resources is checked.
• (4) Improving Employee Motivation:
Through the medium of controlling, an effort is made
to motivate the employees. The implementation of
controlling makes all the employees to work with
complete dedication because they know that their
work performance will be evaluated and if the
progress report is satisfactory, they will have their
identity established in the organisation.
• (5) Ensuring Order and Discipline:
Controlling ensures order and discipline. With its
implementation, all the undesirable activities like
• (6) Facilitating Coordination in Action:
Coordination among all the departments of the
organisation is necessary in order to achieve the
organisational objectives successfully. All the
departments of the organisation are
interdependent. For example, the supply of orders
by the sales department depends on the
production of goods by the production
department.
• Through the medium of controlling an effort is
made to find out whether the production is being
carried out in accordance with the orders
received. If not, the causes of deviation are found
out and corrective action is initiated and hence,
coordination between both the departments is
established.
 The link between planning and
controlling
• Control and planning are interrelated so closely that
they cannot be separated from each other. Without
control all the planning is fruitless because control
consists of the steps taken to ensure that the
performance of the organization conforms to the plans.

• In other words control is concerned with the actual

performance in relation to the standards set in
advance and the correction of deviations to ensure
attainment of objectives. Planning is required at the
very outset of management whereas control is required
at the last stages.

• If planning is looking ahead, control is looking back. In

fact, control is the process of checking to determine
whether or not proper progress is being made towards
the objectives and goals set by management while
doing planning.
What are the 3 different types of
controlling?
Feed-forward
Control
• Control that takes place before work is performed.
Managers using this type of control create
policies, procedures and rules aimed at
eliminating behavior that will cause undesirable
work results. This type of control is helpful to
managers because it allows a manager to plan
work effectively. Although this control can be
costly and can slow down the planning process,
they help to avoid problems later on.
Concurrent
control
• This refers to the control that takes place as work
is being performed. this means that systems are
monitored in real-time. Concurrent controls begin
with standards and all employee activity is
measured against the standard. Usually these
include quality control standards.This means that
products and services can be checked as they
are being produced or performed to be sure that
the highest quality product or service is being
produced or provided.
Feedback
control
• This refers to the control that concentrates on the
post organizational performance. Managers
exercising this type of control are attempting to
take corrective action by looking at
organizational history over a specified time
period. This history may involve one factor, such
as inventory levels, and may involve the
relationships among many factors, such as
net income before taxes, sales volume and
marketing cost.
 Steps in control
process
• 1. Establishing Standards and
Methods for Measuring
Performance
• 2. Measuring the Performance
• 3. Determination of Whether the
Performance Matches the Standard
• 4. Taking Corrective Action.
 Establishing Standards and Methods for
Measuring Performance
• a company must develop, document and explain
clear standards and methods for measuring
particular performances. These must be specific
and understood so effective measuring of tasks
and responsibilities can take place. In this way,
an enterprise can gain a good understanding of
who is performing according to company
objectives. Proper standards and methods for
measuring performance helps a company tweak
their processes as required for better results.
Performance measurement helps them see where
their processes and procedures need
improvement.
 Measuring the
Performance
• this must be done in a consistent, regular manner
to facilitate proper data acquisition to make
informed decisions concerning performance. This
regular measuring gives management
substantial information so they can again make
adjustments as necessary to their protocols.
 Determining Whether the Performance
Matches the Standard

• company management compares measured

results with the standards they previously
established. Therefore, they can determine if
performance is up to their expectations - or not.
With this comparing, they can decide to
abandon certain policies, procedures or tasks,
modify them, or leave them in place.
 Taking Corrective
Action
• a company must use the information gathered
from the control process. Not taking action based
on revealed information (which shows
inefficiencies and/or poor employee performance)
means they wasted their time and resources
instituting the control process. They must take
action that gives solutions to problems. They
must then measure these corrective actions
some time down the road to see if they are
performing up to corporate expectations.
Consequently, the control process is something
that is ongoing in organizations to make sure
that the business is performing optimally
 Characteristics Of Effective Control
Systems
• Accurate. Information on performance must be
accurate. Evaluating the accuracy of the
information they receive is one of the most
important control tasks that managers face.

• Timely. Information must be collected, routed,

and evaluated quickly if action is to be taken
in time to produce improvements.

• Objective and Comprehensible. The information in a

control system should be understandable and
be seen as objective by the individuals who use
it. A difficult-to understand control system will
cause unnecessary mistakes and confusion or
frustration among employees.
• Focused on Strategic Control Points. The control system
should be focused on those areas where
deviations from the standards are most likely
to take place or where deviations would lead to
the greatest harm.
• Economically Realistic. The cost of implementing a
control system should be less than, or at most
equal to, the benefits derived from the control
system.
• Organizational Realistic. The control system has to be
compatible with organizational realities and all
standards for performance must be realistic.
• Coordinated with the Organization's Work Flow. Control
information needs to be coordinated with the
flow of work through the organization for two
reasons: (1) each step in the work process may
affect the success or failure of the entire
operation, (2) the control information must get
to all the people who need to receive it.
• Flexible. Controls must have flexibility built into them
so that the organizations can react quickly to
overcome adverse changes or to take advantage
of new opportunities.
• Prescriptive and Operational. Control systems ought to
indicate, upon the detection of the deviation
from standards, what corrective action should
be taken.
• Accepted by Organization Members. For a control
system to be accepted by organization
members, the controls must be related to
meaningful and accepted goals.

These characteristics can be applied to controls at

all levels of the organization.