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CONTROLLING: DEFINITION, TYPES AND PROCESS

 



INTRODUCTION

Controlling has been referred to as the terminal management function because it takes place after the other functions have been completed. Controlling is most closely associated with planning, because planning establishes goals and the methods for achieving them. Controlling investigates the extent to which planning has been successful.

DEFINITION

1. Control is the management function that involves monitoring activities to ensure that they’re

being accomplished as planned and correcting any significant deviations.

2.Control is the process of measuring performance and taking action to ensure desired results.

IMPORTNACE OF CONTROLLING

Control is important, therefore, because it’s the only way that managers know whether organizational goals are being met and if not, the reasons why. The value of the control function can be seen in three specific areas: planning, empowering employees, and protecting the workplace.

The control function is extremely important because it helps managers evaluate whether all four major management functions have been implemented.

Control protects the organization and its assets.

TYPES OF CONTROLS

The time element in controls

Preventive control, 

(or precontrol) takes place prior to the performance of an activity. A precontrol prevents problems that result from deviation from performance standards. Preventive controls are generally the most cost-effective.

Concurrent controls,

monitor activities while they are being carried out. A typical concurrent control takes place when a supervisor observes performance, spots a deviation from standard, and immediately makes a constructive suggestion.

Feedback controls,

(or postcontrols) evaluate an activity after it has been performed. Feedback controls measure history by pointing out what went wrong in the past. The process of applying the control may provide guidelines for future corrective action.

External versus internal controls

External control,

 is based on the belief that employees are motivated primarily by external rewards and need to be controlled by their managers.

Internal control,

 is based on the belief that employees can be motivated by building their commitment to organizational goals.

THE CONTROL PROCESS

 


 

Measuring

To determine actual performance, a manager must first get information about it. Thus, the first step in control is measuring.

Four common sources of information frequently used to measure actual performance are personal observation, statistical reports, oral reports, and written reports. Each has particular strengths and weaknesses; however, use of a combination of them increases both the number of input sources and the probability of receiving reliable information.

A standard

Is a unit of measurement used to evaluate results. Standards can be quantitative, such as cost of sales, profits, or time to complete an activity. Standards can also be qualitative, such as a viewer’s perception of the visual appeal of an advertisement.

Mesuring actual performance

To implement the control system, performance must be measured. Performance appraisals are one of the major ways of measuring performance. Supervisors often make direct observations of performance to implement a control system.

Comparing actual performance to standards

Once standards have been established and performance measurements taken, the next step is to compare actual performance to standards. Key aspects of comparing performance to standards include measuring the deviation and communicating information about it.

Deviation

In a control system is the size of the discrepancy between performance standards and actual results. It is important to agree beforehand how much deviation from the standard is a basis for corrective action.

Taking corrective action

After making an evaluation of the discrepancy between actual performance and a standard, a manager has three courses of action: do nothing, solve the problem, or revise the standard. Each of these alternatives may be appropriate, depending on the results of the evaluation.

REF

1-ROBBINS DECENZO COULTER, Fundamentals of Management.

2-A.DUBRIN, Essentials of management.


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