The Controlling process
Control techniques and systems are essential for every process in the organisation,which involves the following steps
Steps in Controlling
1. The Establishment of Standards
There is close knit relationship between planning and controlling.So,planning is the yardstick against which controls must be measured.The first step in the process of controlling is to accomplish plans.Plans can be considered as the criterion or the standards against which we compare the actual performance in order to figure out the deviations.The standards can be set in the form of profitability standards,market position standards,product leadership standards,employee attitude standards,Social responsibility standards and the standards reflecting the relative balance between short and long range goals.
2. Measurement of Performance
The second step is to measure the performance and there are various management tools to measure performances in relative areas which have been designed by the management scholars.The performance of men or machine can be measured in this step.
3. Comparing Measured performance to Stated Standards
When managers have taken a measure of organisational performance, their next step in controlling is to compare this measure against the standard established in the first step.A standard can be understood as the level of activity established to serve as a model for evaluating organisational performance.
4. Taking Corrective Action
After actual performance has been measured and compared with established performance standards, the next step in the controlling process is to take corrective action, if necessary.Corrective action is managerial activity aimed at bringing organisational performance upto the level of performance standards.In other words,corrective action focuses on correcting organisational mistakes that hinder organisational performance.It is also necessary for managers to make sure that the standards they are using were properly established and that their measurements of organisational performance are valid and reliable.
Essentials of Effective Control System
It is very important to make the controlling system effective to get increased output and enhance efficiency.Following are the essentials to make controlling effective.
1.Reflecting organisational needs This means that,all control techniques and systems should reflect the plans they are designed to follow.This is because every plan and every kind of phase of an operation has its unique characteristics.
2.In congruence to individual managers and their responsibilities This means that control must be tailored to the personality,attitudes, and belief systems of individual managers.Control systems infact help individual managers carry out their functions of control.What individual managers can not understand, they will not trust, and what they will not trust,they will not use.
3.Capable of pinpointing major deviations It is important for control system to categorically point out the areas where larger focus and urgent attention is required.There are deviations from standards have little meaning and other have a great deal of significance.
4.Objectivity in controlling Effective controls needs to objective definite and determinable in a clear and positive way because when controls are subjective,a manager's personality may influence judgements of performance inaccuracy.
5.Flexibility in controlling Rigidity may spoil the controlling as various other factors may come between that is why flexibility is the most important feature of controlling.
6.Economical controlling This means that controlling system must worth their cost.If we are spending more money on control than what we are going to lose if remains uncontrolled,then it is of no use.
7.Forward looking Effective control system must lead to corrective actions..It is justified only and only if the indicated or experienced deviations from plans are corrected through appropriate planning, organising, directing and leading.
Control techniques and systems are essential for every process in the organisation,which involves the following steps
Steps in Controlling
1. The Establishment of Standards
There is close knit relationship between planning and controlling.So,planning is the yardstick against which controls must be measured.The first step in the process of controlling is to accomplish plans.Plans can be considered as the criterion or the standards against which we compare the actual performance in order to figure out the deviations.The standards can be set in the form of profitability standards,market position standards,product leadership standards,employee attitude standards,Social responsibility standards and the standards reflecting the relative balance between short and long range goals.
2. Measurement of Performance
The second step is to measure the performance and there are various management tools to measure performances in relative areas which have been designed by the management scholars.The performance of men or machine can be measured in this step.
3. Comparing Measured performance to Stated Standards
When managers have taken a measure of organisational performance, their next step in controlling is to compare this measure against the standard established in the first step.A standard can be understood as the level of activity established to serve as a model for evaluating organisational performance.
4. Taking Corrective Action
After actual performance has been measured and compared with established performance standards, the next step in the controlling process is to take corrective action, if necessary.Corrective action is managerial activity aimed at bringing organisational performance upto the level of performance standards.In other words,corrective action focuses on correcting organisational mistakes that hinder organisational performance.It is also necessary for managers to make sure that the standards they are using were properly established and that their measurements of organisational performance are valid and reliable.
Essentials of Effective Control System
It is very important to make the controlling system effective to get increased output and enhance efficiency.Following are the essentials to make controlling effective.
1.Reflecting organisational needs This means that,all control techniques and systems should reflect the plans they are designed to follow.This is because every plan and every kind of phase of an operation has its unique characteristics.
2.In congruence to individual managers and their responsibilities This means that control must be tailored to the personality,attitudes, and belief systems of individual managers.Control systems infact help individual managers carry out their functions of control.What individual managers can not understand, they will not trust, and what they will not trust,they will not use.
3.Capable of pinpointing major deviations It is important for control system to categorically point out the areas where larger focus and urgent attention is required.There are deviations from standards have little meaning and other have a great deal of significance.
4.Objectivity in controlling Effective controls needs to objective definite and determinable in a clear and positive way because when controls are subjective,a manager's personality may influence judgements of performance inaccuracy.
5.Flexibility in controlling Rigidity may spoil the controlling as various other factors may come between that is why flexibility is the most important feature of controlling.
6.Economical controlling This means that controlling system must worth their cost.If we are spending more money on control than what we are going to lose if remains uncontrolled,then it is of no use.
7.Forward looking Effective control system must lead to corrective actions..It is justified only and only if the indicated or experienced deviations from plans are corrected through appropriate planning, organising, directing and leading.
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