Department of Geology

B-S 4th principles of management

By: Nazish Noreen

Controlling

Controlling

“Controlling is determining what is being accomplished that is

evaluating the performance and, if necessary, applying corrected
measures so that the performance takes place according to
plans.” In Terry’s view, controlling helps in proper implementing
of plans. If the plans are not progressing at a proper pace than
necessary measures are taken to set the things right. Controlling
is a channel through which plans may be properly implemented.

“Management Control is the process by which managers assure

that resources are obtained and used effectively and efficiently in
the accomplishment of an organization’s objectives.” Control is a
tool in the hands of management for ensuring better utilization
of resources. Anthony even goes to the extent of saying that
control even ensures the arrangement of required resources.

Characteristics of Control:
From the discussion of above given definitions,
following inferences may be drawn:
1. Managerial Function:
Control is one of the managerial functions. It is not only the
function of chief executive but is the duty of every manager. A
manager is responsible for whatever work is assigned to him. He
will control the performance of his subordinates for ensuring the
accomplishment of goals. Control is mainly the function of line
organization but manager may ask for data from staff personnel.

2. Forward Looking:
Control is forward looking. Past is already gone thus, cannot be
controlled. Measures can be devised to control future activities
only. Past provides a base for determining controls for future.
The manager will study the past performance in order to find out
the reasons for low results. A corrective action will be taken to
ensure that work in future is not adversely affected. Take for
example, production for a particular month is low than the
standard. Manager will not be able to do anything about the past
performance. However, he may study the reasons for low
production. He should take appropriate steps so that the same
mistakes are not repeated and production will not suffer in
future.

3. Continuous Activity:
Control is regularly exercised. It is not an activity in isolation.
The manager will have to see that his subordinates perform
according to plans at all the time. Once the control is withdrawn
it will adversely affect the work. So control will have to be
exercised continuously.

4. Control is related to Planning:

Planning is the first function of management while control is the

last. Control cannot be exercised without planning. First the
objectives are set and then efforts are made to see whether these
are accomplished or not. Whenever there is a laxity in
performance or things are not happening as per the plans then
corrective measures are taken immediately. So planning provides
a base for controlling.

5. Essence of Control is Action:

Whenever performance is not as per the standards the
immediate action is needed to correct the things. The purpose of
control will be defeated if corrective action is not taken
immediately. If the sales are less than the standard set for
marketing department then steps will be taken to ensure that
performance is not low in future. If no such steps are taken then
there will be a lack of control. In practice, immediate action is the
essence of control.

Importance of Control:
The control function helps management in various ways. It
guides the ‘management in achieving pre-determined goals. The
efficiency of various functions is also ensured by the control
process. The shortcomings in various fields are also reported for
taking corrective measures.

1. Basis for Future Action:

Control provides basis for future action. The continuous flow of
information about projects keeps the long range planning on the
right track. It helps in taking corrective action in future if the
performance is not up to the mark. It also enables management
to avoid repetition of past mistakes.

2. Facilitates Decision-making:
Whenever there is deviation between standard and actual
performance the controls will help in deciding the future course
of action. A decision about follow up action is also facilitated.

3. Facilitates Decentralization:
Decentralization of authority is necessary in big enterprise. The
management cannot delegate authority without ensuring proper
controls. The targets or goals of various departments are used as
a control technique. If the work is going on satisfactorily then top
management should not worry. The ‘management by exception’
enables top management to concentrate on policy formulation.
Various control techniques like budgeting, cost control, pre
action approvals allow decentralization without losing control
over activities.
4. Facilitates Co-ordination:
Control helps in coordination of activities through unity of
action. Every manager will try to co-ordinate the activities of his
subordinates in order to achieve departmental goals. Similarly,
chief executive will co-ordinate the functioning of various
departments. The controls will act as checks on the performance
and proper results will be achieved only when activities are
coordinated.

5. Helps in Improving Efficiency:

The control system helps in improving organizational efficiency.
Various control devices act as motivators to managers. The
performance of every person is regularly monitored and any
deficiency is corrected at the earliest.

6. Psychological Pressure:
Controls put psychological pressure on persons in the
organization. Everybody knows that his performance is regularly
evaluated and he will try to improve upon his previous work. The
rewards and punishments are also linked with performance. The
employees will always be under pressure to improve upon their
work. Since performance measurement is one of the important
tools of control it ensures that every person tries to maximize his
contribution.

Control Process
The control process of management ensures that every activity of a business is
furthering its goals. This process basically helps managers in evaluating their
organization’s performance. By using it effectively, they can decide whether to
change their plans or continue with them as they are.

The control process consists of the following basic elements

and steps:

1. Establishing goals and standards

The task of fixing goals and standards takes place while
planning but it plays a big role in controlling also. This is
because the main aim of controlling is to direct a business’s
actions towards its goals. If the members of an organization
know their goals clearly, they will invest their entire focus in
achieving them.

It is very important for managers to communicate their organization’s goals,

standards and objectives as clearly as possible. There must never be ambiguities
amongst employees in this regard. If everybody works towards common goals,
it becomes easier for an organization to flourish.

2. Measuring actual performance against goals and standards

Once managers know what their goals are, they should next
measure their actual performance and compare. This step
basically helps them in knowing whether their plans are
working as intended.

After implementing a plan, managers have to constantly

monitor and evaluate them. They must always be ready to take
corrective measures if things are not working properly.
In order to do this, they should keep comparing their actual
performance with their ultimate goals.

Apart from taking corrective action, this step of process control also helps
managers in predicting future problems. This way they can take measures
immediately and save their business from losses.
In order to compare their actual performance, managers first have to measure it.
They can do so by measuring results in monetary terms, seeking customer
feedback, appointing financial experts, etc. This can often become difficult if
managers want to measure intangible standards like industrial
relations, market reputation, etc.

3. Taking corrective action

In case there are discrepancies between actual performances
and goals, managers need to take corrective actions
immediately. Timely corrective actions can reduce losses as
well as prevent them from arising in the future again.

Sometimes, business organizations formulate default corrective

actions in the form of policies. This, however, can be difficult to
do when it comes to complicated problems.

In such cases, managers need to first quantify the defect and

prepare a course of action to remedy it. Sometimes, they may
have to take extraordinary measures for unpredictable
problems.

4. Following up on corrective action

Just taking corrective measures is not enough; managers must
also take them to their logical conclusion. Even this step
requires thorough evaluations and comparisons.

Managers should stick to the problem until they solve it. If they
refer it to a subordinate, they must stay around and see to it
that he completes the task. They may even mentor him
personally so that he may be able to solve such problems by
himself later.