CONTROLLING

CONTROLLING

(MANAGEMENT)

Control or Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.

 DEFINITION

By Henri fayol

"control of an undertaking consist of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring"

By Stafford Beer

"management is the profession of control"

CHARACTERISTIC

• Control is a continuous process
• Control is a management process
• Control is embedded in each level of organizational hierarchy
• Control is forward looking
• Control is closely linked with planning
• Control is a tool for achieving organizational activities
• Control is an end process
• Control compares actual performance with planned performance*
• Control point out the error in the execution process
• Control helps in minimizing cost
• Control helps in achieving standard
• Control saves the time
• Control helps management for monitoring performance

PROCESS

Step 1. Establishment of Standard.

Standards are the criteria against which actual performance will be measured. Standards are set in both quantitative and qualitative terms.

Step 2. Measurement of actual performance

Performance is measured in an objective and reliable manner. It should be checked in the same unit in which the standards are set.

Step 3. Comparing actual performance with standards.

Step 4. Analysis the cause of deviations.

Step 5. Taking corrective action

IMPORTANCE OF CONTROL

1. Increasing size of business
2. Motivation for efficient employees
3. For complete discipline
4. Helpful in future planning
5. Aids efficiency
6. Decrease in risk
7. Helpful in coordination
8. Helpful in decentralisation