Controlling

     

Controlling

Controlling is the process of evaluation and correction of the performance in order to make sure that the objectives of the enterprises are accomplished through the plan, formulated to attain them. In other words, controlling is the systematic effort through which the manager assures that actual activities match to the planned activities.

According to DeCenzo, “Controlling is the process of monitoring activities to ensure that they are being accomplished as the plan and taking corrective action in any significant deviation”.

Similarly, According to Henri Fayol,” Control consist of verifying whether everything occurs in conformity with the plans adopted, the instruction issued and the principle established. It has for its object to point out weakness and errors in order to rectify them at prevent recurrence”.

Thus, controlling is the process of decreasing the deviation between actual and standard activities.

Controlling Process:

Following steps are involved in controlling process;-

1. Setting Standard: The first step in the controlling process is to set the standard of performance. It is a reference point against which the actual performance is measured. Usually, planning sets standard of performance. The standard should be stated in definite measurable terms such as cost, income, unit of services, man-hours speed etc. 2. Measuring the actual Performance: After setting the standard, the information related to the individual performance and their activities are gathered and evaluated. The evaluation or measurement can be done through personal observation or through report writing. It is a continuous process, which gives the clear idea about the individual’s ability and his/her actual performance. 3. Comparing actual performance against standard: In this step, actual performance of an individual or group is compared with the standard performance. It helps to determine any deviation that may occur between actual and standard activities. 4. Taking Corrective actions: If any deviation occurred between standard and actual performance after comparison, the remedial measure will be adopted. It helps to correct the differences and put the actual performance in the track to standard performance. The corrective action may involve a change in method, machineries, rules, procedures, improving physical condition of work, changing the nature of supervision etc.

Types of control system

Types of control are as follows:

1. Feed-forward controls, sometimes called preliminary or preventive controls, attempt to identify and prevent deviations in the standards before they occur. Feed-forward controls focus on human, material, and financial resources within the organization. These controls are evident in the selection and hiring of new employees. For example, organizations attempt to improve the likelihood that employees will perform up to standards by identifying the necessary job skills and by using tests and other screening devices to hire people with those skills. 2. Concurrent controls monitor ongoing employee activity to ensure consistency with quality standards. These controls rely on performance standards, rules, and regulations for guiding employee tasks and behaviors. Their purpose is to ensure that work activities produce the desired results. As an example, many manufacturing operations include devices that measure whether the items being produced meet quality standards. Employees monitor the measurements; if they see that standards are not being met in some area, they make a correction themselves or let a manager know that a problem is occurring. 3. Feedback controls involve reviewing information to determine whether performance meets established standards. For example, suppose that an organization establishes a goal of increasing its profit by 12 percent next year. To ensure that this goal is reached, the organization must monitor its profit on a monthly basis. After three months, if profit has increased by 3 percent, management might assume that plans are going according to schedule.

Characteristics of Effective controlling

1. Integrated with planning: Controlling will be effective only when it is linked with planning . Thus while planning, expected problems that may arise on performing the task should be considered and determine the necessary control measures. 2. Suitability: Controlling function should be able to meet the need of the organisation. Otherwise, It may lead to over costing, ambiguity, conflict. 3. Accurate: The information provided by the control system must be reliable and accurate. 4. Flexibility: Control function should not be too rigid. It must changeable according to the changing environment. 5. Understandable: Control system must be understood by employees working under it. 6. Assuring quality performance: Control system must assure the quality performance in an organisation. It must help to maintain the quality in overall managerial function. 7. Acceptable: Control system must be accepted by the employees to be effective and efficient. 8. Economical: An expensive control system will raise the operation cost. Therefore, the control system should be justified in terms of cost and benefits.

Problems with control system:

1. Problem with over control: Controlling does not mean to guide or instruct employees in each and every activity. It is performed only when it is required. In addition, over controlling leads to anxiety to the subordinates. Thus there should not be over controlling in an organization. 2. Fails in reporting: Controlling can be effective only when, there is reliable and accurate information. Sometimes due to carelessness and negative attitude subordinates may pass-on invalid and incorrect information which may lead to over costing, confusion in an organisation..

3. Problems in fixing standard: There are some behavioral aspects of employees such as job satisfaction, motivation, leadership etc. which cannot be quantified exactly. Thus, fixing standard in such abstract term is one of the problems in controlling. 4. High Cost: Different professionals, tools, equipments, are used in the controlling process. So it increases the cost of an organization. 5. Resistance: Controlling process is not always accepted by employees. There may be chances of refusal to accept new ideas or change by employees in an organisation. E.g. Downsizing due to environmental factors may be opposed by employees.