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Controlling
Controlling is the process of evaluating and correcting individual performance to ensure that outcomes conform to the standard set before. It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals.
Controls can help managers in:
- Coping with uncertainty because of the standard set in advance, managers can react quickly to any sudden events.
- Detecting irregularities such as poor quality, cost overruns etc. and managers can take remedial action as soon as when it arises.
The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.
Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation.
Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished.
Controlling Process /Steps
Step 1 Establishing Standard
Standard must be reasonable and achievable.
Ideal standard which is unachievable may frustrate employees and cannot help achieve the standards set. Low standard which is too easy to achieve cannot make improvement for company’s operation.
Step 2 Measuring Actual Performance
For a given standard, manager must decide how to measure actual performance.
Step 3 Comparing Actual Performance with Standard
Compare the actual performance against the standards based on the control criteria and identify the deviations, if any. ‘Deviations’ means the goals of company may not be feasible in relation to the existing management plan or the existing capabilities of the company’s resources.
Deviations are noted if:
- Actual performance below the standard.
- Actual performance above the standard.
Step 4 Taking Corrective Action
Taking corrective action is to ensure the company can achieve a realistic goal. If no deviation or deviation is insignificant, no action is required. Otherwise, take corrective actions such as changing the existing strategy, employees’ remunerations, and training etc., OR Revise the standard if it is not realistic, fair and achievable.