UNIT 5

• Controlling can be defined as a managerial function to ensure

that activities in an organisation are performed according to the
plans.

• Controlling also ensures efficient and effective use of

organisational resources for achieving the goals. Hence, it is a
goal oriented function.

• Controlling and management control are considered same.

• It is a process of comparing the actual performance with the set

standards of the company to ensure that activities are performed
according to the plans and if not then taking corrective action.
Control is a function of management which helps to check errors
in order to take corrective actions. This is done to minimize
deviation from standards and ensure that the stated goals of the
organization are achieved in a desired manner.

Henri Fayol formulated one of the first definitions of control as it

pertains to management:
Control of an undertaking consists 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 objective is to point out mistakes in
order that they may be rectified and prevented from recurring.
According to Harold Koontz:
Controlling is the measurement and correction of
performance in order to make sure that enterprise
objectives and the plans devised to attain them are
accomplished.

According to EFL Brech:

Control is checking current performance against pre-
determined standards contained in the plans, with a
view to ensure adequate progress and satisfactory
performance.
 Characteristics
•Control is a continuous process
•Control is pervasive function
•Control is a management process
•Control is closely linked with planning
•Control is a tool for achieving organizational
activities
•Control compares actual performance with
planned performance.
•Control point out the error in the execution
process
•Control minimizes cost
•Control achieves the standard
•Control saves time
•Control helps management monitor
performance
•Control compares performance against
standards
•Control is action oriented
 Importance of Controlling
1.Accomplishing Organisational
Goals
2.Judging Accuracy of Standards.
3.Making Efficient Use of
Resources.
4.Improving Employee Motivation.
5. Ensuring Order and Discipline.
1.Establishing standards • setting up of the target which
needs to be achieved to meet organisational goals
eventually. • Standards indicate the criteria of
performance. • Quantitative standards are expressed in
terms of money. • Qualitative standards, on the other
hand, includes intangible items.

2.Measurement of actual performance • The actual

performance of the employee is measured against the
target • With the increasing levels of management, the
measurement of performance becomes difficult.
3.Comparison of actual performance with
the standard •This compares the degree of
difference between the actual
performance and the standard.

4.Taking corrective actions •initiated by

the manager who corrects any defects in
actual performance.
 Limitations of Controlling
Difficulty in setting quantitative standards:
Control system loses some of its effectiveness when
standards cannot be defined in quantitative terms. This
makes a measurement of performance and their comparison
with standards a difficult task. It is not a simple mission to
set the principles for the tasks of the human and to set a
level for the competence and how to preserve a level of
their contentment. In such cases, the decision depends upon
the judgment of the manager. This is particularly so in areas
of job satisfaction, human behavior, and employee
confidence.
Little control of external factors:
There are a few things that are not under the control of the
manager or the organization. All these are not under the control of
the company, and that makes things out of control.

A manager can control internal factors (like manpower, material,

machine, etc.) but it is impossible to control the external factors
(like government policies, technical changes, competition, etc.)
Therefore, a situation of absolute discipline cannot be established.
Resistance from employees:
Control is often resisted by employees. They see it as a
restriction on their freedom. Employees feel control
reduces or curtails their freedom. The employees that
oppose taking the challenges are not under the control
of the organization in some area.

The manager can inspire the employees, but they

cannot compel them to work as per the rules and
regulations.
Costly affair:
Control is a costly affair as it involves a lot of expenditure, time
and effort. The control system is very costly as it involves the
exercises that are exceedingly charged. Controlling involves a
lot of expenditure, time and effort, thus it is a costly affair. It
also requires hiring many employees which also adds up to
incurring the cost. A small enterprise cannot afford to install an
expensive control system. To determine the activity of every
employee or worker in an organization, there is the requirement
of appropriate funds for sending the reports to the high
authorities. Therefore, they are useful for only big organisations
and for the small organisations. The managers should employ
only those controlling techniques which yield profit more than
No freedom to the employees
With so much control, the employees believe that their
liberty is condensed. They do not consider working for
the organization that does not let them work as per
their determination. Thus, they go away to the
companies that do not give them liberty. There is the
requirement of putting a lot of time and effort to the
control system.
 Elements of Management
Control
1. Planning- Business organizations should clearly
identify their purpose of existence. Based on
this purpose, the vision, mission, goals, and
objectives should be defined by the
organization. these goals and objectives should
be achievable with the available resources and
should align with the external factors of the
business.

2. Establishment of standards
When implementing business strategies and
defining the business processes, the managers
should establish standards that can measure the
success and performance of business activities.
These measurements should be realistic and
achievable. In addition, these standards and
3. Monitor and evaluate actual performance
Once the performance standards are set in place, the
organization should put necessary measures in place to
monitor and evaluate the performance at multiple levels of
the production process. It helps to identify the performance
at each level of the production process and helps the
management in strategic decision-making.

4. Compare actual results with the expected results

Once the performance details are obtained, those details
should be compared with the expected results. This helps the
business to identify the success level of their goal
attainment. The comparison of actual and expected
performance levels helps the business to focus more on the
areas that need improvement. Apart from that, it also helps
the organization to align the business activities with the set
goals and objectives.
5. Rectify differences and take
corrective actions
If there is a difference between the
expected result and the actual result
of the performance, the business
should take immediate measures to
rectify the cause for the difference.
The reason for the difference should
be identified and the corrective
actions should be implemented
accordingly.
Types of Control Measures

•Concurrent control
•Feedback control
•Feedforward control
Concurrent Control

This control can also be referred to as steering or real-time

control. Thus, this control is associated with adjusting a
performance before any high damage is done. For example,
the ship’s movements are navigated by a sailor continuously.
Also, a driver adjusts the steering of its car continuously.
This direction for both the examples depends upon the
obstacles, destination, and many more. Usually, you will find
a control chart in a factory. This is an example of concurrent
control. So, this control occurs when the activity is still in the
process.

The process of monitoring and adjusting ongoing activities

and processes is known as concurrent control.
An example of concurrent control might be adjusting the
water temperature of the water while taking a shower.
Feedback Control
This process involves collecting information about a finished task, assessing that
information and improvising the same type of tasks in the future.

Any managerial system that is good controls itself in the form of information feedback.
This discloses errors in accomplishing goals and thereby initiates the proper corrective
action. Thus, feedback is the process that adjusts future actions based on the information
about past performance. Although feedback is done after the process, it is a very
important part of the control process.

This can also be termed as post control. As the name says, this refers to the various
information about the completed activity. This is done to evaluate the information and to
improve the activity by taking corrective action.

Feedback permits the manager to use the information about the past performance by
bringing the future performance in line with the objective that is planned. Thus, testing
the validity and its appropriate standards is helped by post control. Thus, to make it more
effective and meaningful, it is required to analyze the post-performance.

Feedback controls involve gathering information about a completed activity, evaluating

that information, and taking steps to improve the similar activities in the future. This is
the least proactive of controls and is generally a basis for reactions. Feedback controls
permit managers to use information on past performance to bring future performance in
line with planned objectives.
Predictive/ feedforward control

This type of control helps to foresee problem ahead

of occurrence. Therefore action can be taken before
such a circumstance arises.

This involves evaluating the various inputs. Example

of this can be considered as policies. Policies are
formed in a country to prevent any critical problem
from happening.

It addresses what can we do ahead of time to help our

plan succeed. The essence of feedforward control is to
see the problems coming in time to do something
about them. For instance, feedforward controls
Traditional Techniques of Managerial
Control

•Personal observation
•Statistical reports
•Break-even analysis
•Budgetary control
 Budgetary control
Budget is “the process of stating in quantitative
terms, planned organisational activities for a
given period of time.” Budgeting control refers
to comparison of actual performance with
planned or budgeted performance. It is a basic
technique of control and is used at every level of
organisation. Budgets are prepared for the
organisation as a whole and for each
departmental unit.
A budget is a statement which reflects future
incomes, expenditures and profits that can
be earned by a firm. It is a future projection
of the firm’s financial position. Non-
financial aspects like units produced, units
sold, unit cost of material and labour etc.
can also be important components of a
budget.
• Personal Observation: This is oldest method
of controlling. Manager get quick information
about the employee and this in turn put the
employee to focus more on the work rather to
waste time.

Statistical Data: Statistical data may be used

in the form of charts, tables and graphs. The
presentation quality depends upon the
accuracy of the data. Such reports are used for
managerial control.
• Break Even Analysis
• Helpful to evaluate the cost of production,
volume of production, sales and revenue
generated.
• Point where there is no profit no loss is known
as break even point.
Modern Techniques of Managerial
Control

•Return on investment
•Ratio analysis
•Responsibility accounting
•Management audit
•PERT & CPM
ROI- Return On Investment
Investment consists of fixed assets and working capital used
in business. Profit on the investment is a reward for risk
taking. If the ROI is high then the financial performance of a
business is good and vice-versa.
ROI is a tool to improve financial performance. It helps the
business to compare its present performance with that of
previous years' performance. It helps to conduct inter-firm
comparisons. It also shows the areas where corrective
actions are needed.
Management information
system : At every function
organization has to take
important decisions. Quality of
decision is directly linked with
the nature and quality of
information provided. An
effective information system is
vital for efficient decision and
management.
 Ratio Analysis
Ratio analysis is a quantitative method of gaining insight into a
company's liquidity, operational efficiency, and profitability by
studying its financial statements such as the balance sheet and
income statement.

Investors and analysts employ ratio analysis to evaluate the

financial health of companies by scrutinizing past and current
financial statements. Comparative data can demonstrate how a
company is performing over time and can be used to estimate
likely future performance. This data can also compare a
company's financial standing with industry averages while
measuring how a company stacks up against others within the
same sector.
 EVA
Economic value added (EVA) is a measure of a company's financial
performance based on the residual wealth calculated by deducting its
cost of capital from its operating profit, adjusted for taxes on a cash
basis. EVA can also be referred to as economic profit, as it attempts to
capture the true economic profit of a company.

NOPAT = Net operating profit after taxes

Invested capital = Debt + capital leases + shareholders' equity
WACC = Weighted average cost of capital
Economic Value Added (EVA) is a financial metric used
to measure a company's or project's financial
success. It's calculated by subtracting a company's cost
of capital from its operating profit:
EVA is a performance metric that shows how well a
company uses its investments and generates profits. It
can be used to:
Measure a company's financial success: EVA shows
how much value a company generates from the capital
it invests.
Determine if a company is adding value: A positive
EVA means a company is adding value, while a negative
EVA means it's destroying value.
Measure how effective a company is at attracting
investments: EVA shows how well a company attracts
 PERT/CPM
PERT stands for Project Evaluation and Review
Technique. This is an appropriate technique that is
used for projects where the time required or needed
to complete different activities is not known. This
planning tool is used to calculate the amount of time
it will take to realistically finish a project. It provides
the blueprint of project and is an efficient technique
for project evaluation.
In this technique, a PERT Chart is made which
represents a schedule for all the specified tasks in
the project. The PERT chart is used to schedule,
organize, and coordinate tasks within the project.
The objective of the PERT chart is to determine the
critical path, which comprises critical activities that
CPM
CPM is a technique that is used for projects where
the time needed for completion is already known.
It is primarily used for determining the
approximate time within which a project can be
completed. The critical path is the largest path in
project management that always results in the
shortest time to complete the project.
CPM also helps project managers identify critical
tasks and non-critical tasks, allowing them to
prioritize resources and manage project schedules
effectively.
PERT (Program Evaluation and Review Technique) and CPM
(Critical Path Method), have become integral tools in the
realm of management planning and control. These
techniques involve breaking down a project into smaller
activities and arranging them in a logical sequence. By
determining the sequence and time limits for each activity,
project managers can effectively plan and coordinate the
various operations involved. A network diagram is then
created to visualize the interdependence and relationships
between these activities. The construction of such a diagram
requires meticulous analysis and assessment of each project
component to ensure optimal timing. In network analysis,
activities are represented by arrows, denoting the operations
required to achieve project goals, while events, represented
by circles, signify the points in time when activities are
initiated or completed. PERT and CPM are two widely
recognized network techniques that aid in project
Effective project management demands
optimization of the duration of the project to
minimize the total project time and cost. The
Project Evaluation Review Technique (PERT) and the
Critical Path Method (CPM) are always employed by
project managers by breaking large complex
projects into sub-activities, deploying resources
and managing the circles of the projects in order to
minimize the total cost and time of the project .
Hence, PERT and CPM are operational research
tools used in driving project effectiveness and
efficiency and these techniques can be applied to
several industries or sectors, such as construction,
aviation, the military, and education, including the
civil government
 Elements of Good Control System
1) Feedback
Feedback is the backbone of all control systems. This feedback
is nothing but the information that managers use to correct
their organization’s actual performance.
The aim of feedback is basically to adjust future actions using
previous experiences.

2) Control must be objective

The second essential requirement of a good control system is
that it must always be objective. A subjective criterion should
never be the basis of evaluating actual performances.
For example, evaluation of an employee’s performance should
comprise of standards like working hours,
productivity, efficiency, etc. Managers should not evaluate
employees using subjective prejudices.
3) Prompt reporting of deviations
This element of the controlling system basically requires quick reporting
of deviations and discrepancies. If some work is not going according to
plans, relevant managers must take notice of this immediately. This is
because any delay in reporting problems and taking corrective measures
can lead to financial losses for a business.

4) Control should be forward-looking

Control systems can often suffer from the defect of delays in reporting of
deviations and taking of corrective measures. Managers must ensure that
their control systems are forward-looking. This will help in predicting
deviations in advance as well as giving adequate time for course correction.

5)Flexible controls
A rigid control system can often make it ineffective in extraordinary and
unpredictable situations. It should, thus, be flexible and open to changes.
Managers must be able to adapt their control measures as per the
requirements of every possible scenario.
6) Hierarchical suitability
Almost all business organizations possess management hierarchies comprising
of managers at various positions and levels. Since each manager performs
controlling functions at his level, the system itself must suit his organization’s
hierarchy. Every manager must have adequate powers for this purpose and
the flow of information for evaluation should be effective.

7) Economical control
Every good controlling system has to be economical when it comes to its
implementation and maintenance. In other words, its benefits should outweigh
its costs. An organization must be able to afford it and also derive all possible
advantages from it.

8) Strategic control points

Not all deviations require the same level of attention and importance. For
example, if an infrastructure company loses one government tender for
constructing roads, it can work on other projects.
However, if the government blacklists it altogether due to its financial
irregularities, this can be a huge issue.
A good control system must be able to deal with every deviation as per its
seriousness.
9) Control must be simple to understand

Before launching controlling measures, managers

should first check whether their employees will be able
to understand them. They should also try to resolve any
ambiguities and confusion that may arise later.

10) Control should focus on workers

Good control systems always focus on workers instead
of the work itself. Since it is workers who implement
these systems, everybody should be able to work with
them effectively.
 Coordination
Coordination is the energy that connects all the other functions of management.

Coordination is the force that connects all managerial functions and ensures the
smooth and efficient functioning of an organization. All the activities of an
organization such as purchase, production, sales, and finance are connected through
this link of coordination, which enables and helps in the continuous working of an
organization. It is considered the soul of management, as it helps in achieving the goal
through harmony and discipline of both individuals and groups. Though occasionally,
coordination might not be referred to as a managerial function, it is the essence of
management.

A manager needs to perform five managerial functions that are all

interdependent and overlapping. All these functions are not separate
from each other. Thus, when a manager links together all these
functions, it is known as coordination.
 Features of Coordination
Coordination consist of the following features:
•Coordination assimilates group efforts: Coordination
combines diverse business activities into a purposeful group
activity, ensuring that all people work in one direction to
achieve organizational goals. It provides a common focus to
group effort so that the performance is as it was planned and
scheduled.

•Coordination assures unity of action: Coordination directs

the activities of different departments and employees towards
achievements of common goals and brings unity in individual
efforts. It performs as the binding force betweendepartments
and assures that all action is aimed at achieving the
organizational goals. In an enterprise, the production
department needs to coordinate its work with the sales
department so that production takes place to the demand in
•Coordination is a continuous process: Coordination is
essential in every stage of managerial functions. Stating right
from the stage of planning, it continues till controlling. It is a
continuous process that is required at all levels, in all the
departments till the organization continues its operation.

•Coordination is an all-pervasive function: Coordination is

in nature. It integrates the activities of all levels and
departments as they are dependent on each other to maintain
balance in the organization. To achieve organizational
objectives harmoniously, the purchase, production, and sales
departmental efforts have to be coordinated properly.

•Coordination is the responsibility of all managers: In an

organization, every manager needs to perform the function
of coordination. It is equally important at all the three levels of
Coordination is a deliberate
function: Coordination is never by itself, rather it is
a conscious effort on the part of every manager.
Even where members of a department willingly
cooperate and work, coordination gives direction to
that willing spirit. Compete ration is a voluntary
effort of employees to help one another. Effective
coordination cannot be achieved without the
cooperation of group members.
Importance of Coordination
Coordination is necessary as it combines the efforts
of people, authorities and experts. The principal
analysis for coordination is that units and individuals
in the company are interdependent, i.e. they rely
upon each other for data and resources to conduct
their own activities.

Growth in size: When there is an increase in the size of the

organization, the number of employees also rises. Sometimes, it
becomes tough to assimilate the efforts and activities of the worker. As
we know, every individual is different in their way, be it their habit of
working, background, approaches to situations, and relationships with
others, etc. It becomes very important to make sure that all individuals
are working for a common goal of the organization. Some employees
have individual goals also. Therefore, it becomes very important to
harmonize individual goals and work for organizational goals through
coordination to achieve organizational efficiency.
Functional differentiation: In an organization, activities and functions are
frequently divided into departments, divisions, or sections. In an
organization, there may be separate departments of finance, production,
marketing, or human resources. All these departments have their objectives
and working style. But all these departments and sections depend on each
other. All the activities of all these departments should focus on attaining the
common goal of the organization. Coordination helps to accumulate
activities of this department, so that they can proceed together in a single
direction instead of working as independent units.

Specialization: Specialization is the result of the complexities of modern

technology and a variety of operations performed. Thus, there is a need for
the organization to recruit a plentiful of specialists. The specialists qualify in
a particular area and work accordingly. They analyze and take decisions
related to their specialization for the advancement of the organization.
Different specialists working in the same organization might sometimes
result in conflicts among one another. Therefore, coordination is required to
harmonize the conflicts and differences in way of thinking, interests, and
beliefs of the specialists.
Principles of Coordination

Principles refer to fundamental truths on which an action is

based.

1. Early Beginning:
It follows the principle of earlier the better. Managers should
initiate efforts to coordinate organisational activities right from
the planning stage. If plans are implemented without
coordination in mind, it will become difficult to coordinate the
organisational activities at later stages. Framing objectives and
policies through participative decision-making are the strengths
to achieve coordination.

2Unity of Command:
Unity of command means one boss for one subordinate. It will
be difficult to achieve coordination if one individual has to
report to more than one boss. Unity of command helps in
3. Scalar Chain:
It refers to chain or link between top managers
and lower managers. It is the hierarchy of levels
where information and instructions flow from top
to bottom and suggestions and complaints flow
from bottom to top. This chain facilitates
coordination as top managers pass orders and
instructions down the chain which are necessary
for subordinates to work efficiently.
Subordinates also pass upwards only those
suggestions and complaints, which they feel
should be brought to the notice of top managers
through middle level managers. Passing of only
necessary information facilitates coordination
amongst various levels. Scalar chain, thus,
4. Continuity:
Coordination is a continuous process. It
must be continuously carried out at all
levels in every department. It starts the
moment an organisation comes into
existence and continues till the
organisation exists. Coordination is not an
option. It is the inevitable force that binds
all organisational members and resources
together and, thus, is the backbone of
organisational success.
5. Span of Management:
It refer to the number of subordinates that a manager can
manage effectively. It is important to place only as many
subordinates under the direction of one manager as can be
effectively managed by him. It affects the manager’s ability to
coordinate the activities of subordinates working under him.
Large number of subordinates under one manager can make
coordination amongst their efforts difficult.

6. Direct Contact:
Direct or personal contact between managers and subordinates
can achieve better coordination than indirect or impersonal
contact. Face-to-face interaction amongst people of different
levels or same level in different departments promotes
understanding of information and thoughts. This facilitates
effective communication and mutual understanding and
through it, effective coordination.
7. Reciprocity:
It refers to interdependence of activities. Production and
sales department, for example, are inter-dependent. The
more one sells, the more one needs to produce. The
more one produces, the more one attempts to sell what
is produced. The nature and extent to which
organisational activities are dependent on each other are
considered by managers when they initiate to coordinate
the organisational activities. More the inter­dependence
amongst organisational activities, more is the need for
coordination amongst them.

8. Dynamism: There are no fixed and rigid rules for

coordination. Changes in organisational environment
necessitate changes in the techniques of coordination. It
Techniques of Co-ordination:
Sound planning — unity of purpose is the first essential condition of co-
ordination. Therefore, the goals of the organisation and the goals of its units
must be clearly defined. Planning is the ideal stage for co-ordination. Clear-
cut objectives, harmonized policies and unified procedures and rules ensure
uniformity of action.

Simplified organisation — a simple and sound organisation is an

important means of co-ordination. The lines of authority and responsibility
from top to the bottom of the organisation structure should be clearly
defined. Clear-cut authority relationships help to reduce conflicts and to hold
people responsible. Related activities should be grouped together in one
department or unit. Too much specialization should be avoided as it tends to
make every unit an end in itself.

Effective communication — open and regular communication is the key to

co-ordination. Effective interchange of opinions and information helps in
resolving differences and in creating mutual understanding. Personal and
face-to-face contacts are the most effective means of communication and
co-ordination. Committees help to promote unity of purpose and uniformity
Effective leadership and supervision — effective
leadership ensures co-ordination both at the planning and
execution stage. A good leader can guide the activities of his
subordinates in the right direction and can inspire them to pull
together for the accomplishment of common objectives. Sound
leadership can persuade subordinates to have identity of interest
and to adopt a common outlook. Personal supervision is an
important method of resolving differences of opinion.
Chain of command — authority is the supreme co-ordinating
power in an organisation. Exercise of authority through the chain
of command or hierarchy is the traditional means of co-ordination.
Co-ordination between interdependent units can be secured by
putting them under one boss.

Indoctrination and incentives — indoctrinating organisational

members with the goals and mission of the organisation can
transform a neutral body into a committed body. Similarly
incentives may be used to create mutuality of interest and to
Liaison departments — where frequent contacts between
different organisational units are necessary, liaison officers may
be employed. For instance, a liaison department may ensure that
the production department is meeting the delivery dates and
specifications promised by the sales department. Special co-
ordinators may be appointed in certain cases. For instance, a
project co-ordinator is appointed to co-ordinate the activities of
various functionaries in a project which is to be completed within
a specified period of time.

Voluntary co-ordination — when every organisational unit

appreciates the workings of related units and modifies its own
functioning to suit them, there is self-co-ordination. Self-co-
ordination or voluntary co-ordination is possible in a climate of
dedication and mutual co-operation. It results from mutual
consultation and team-spirit among the members of the
organisation. However, it cannot be a substitute for the co-
coordinative efforts of managers.
Managerial Effectiveness
Managerial effectiveness refers to how well a manager accomplishes the goals of an
organisation by using resources efficiently and coordinating the efforts of the
organisation’s members. It is measured by how much a manager achieves rather than
just what they do.

Managerial Effectiveness refers to the extent to which managers achieve desired

results within their teams or departments. It considers how well they set goals, make
decisions, communicate effectively, inspire and motivate their team, delegate tasks,
and handle conflicts.

Managerial effectiveness is the ability of a manager to achieve organizational goals

while balancing employee expectations and development.

Manager effectiveness is a combination of many skills and traits that can help you
manage your employees effectively. Manager effectiveness includes motivating
employees, communicating with and listening to employees, rewarding employees for
high performance and more.Being an effective manager can help you organize your
employees and their responsibilities in order to achieve company goals. In this way,
manager effectiveness can contribute to a company's success.
Efficiency is a measure of productivity and how tasks are
performed, while effectiveness measures the quality of
the end results. Effective management focuses on
formulating strategy, while efficient management focuses
on implementing strategy.

Effectiveness is the extent to which someone or something

is successful towards meeting the desired outcome.

Efficiency refers to the act of performing activities with

minimum wastage of time and optimum usage of resources,
so that the work done is faster and in an error free manner.

Effectiveness is not time oriented.

Efficiency is time oriented.

The manager’s effectiveness is influenced by their

Some elements of managerial
effectiveness include:
Setting and achieving goals: Managers should set and achieve goals at
the individual and team level.

Communicating effectively: Managers should communicate well with their

employees and listen to them.

Motivating employees: Managers should motivate their employees and

reward them for high performance.

Delegating tasks: Managers should know when to delegate tasks and

manage workloads.

Handling conflicts: Managers should be able to handle conflicts.

Being open to feedback: Managers should be open to feedback and seek it

out.
An effective manager should possess certain skills,
such as:
Time management skills;
Leadership skills;
Conflict management skills:
Emotional intelligence;
Creative problem solving;
Mediating;
Negotiating.
People management skills:
Patience;
Trust;
Good judgement;
Listening skills;
Empathy.
Self-management skills:
Initiative;
Organisation;
 The Principles of control
It can be defined as different methodologies,
techniques used by the managers to control and
monitor various business activities which help
for the growth of the organization. These
principles also help to protect and safeguard the
organization, its assets, liabilities, resources,
etc.
Principles of Assurance of objective
This ensures that by detecting the deviations in the
work. The objectives of the company are achieved
on a quick and more efficient basis.
The basic purpose of management control is the
attainment of objectives does this by detecting
failures, in plans. Potential or actual, deviations
from plans should be detected enough to permit
effective corrective action.
Principle of Reflection of Plans
Planning and control are two sides of the same coin, they go
hand in hand. So if the firm has a clear and complete plan
then it is much easier to make a control system for the firm.
So a well-integrated plan means that the more effective the
controls are.
Controls must be designed so as to reflect the character and
structure of plans. If the organisation is clear and
responsibility for work done is well defined, control
becomes more effective and it is simple to isolated persons
responsible for deviations.
Principle of Prevention
The concept of ‘prevention is better than cure’ will apply
to the control function as well. So the system of control
must not only focus on improving deficiencies and
solving the deviations from standards.
Instead, the focus should first be on preventing mistakes
and deviations from the plan. If there are very few
shortfalls in the first place, then the remedial action
necessary is limited and manageable.
Principle of Future-orientation (Controls)
The function of control is not simply a feedback
system. Actually, control is a feedforward operation.
Ideally, a control system should provide instantaneous
feedback so that, deviations from desired performance
is corrected as soon as they occur. And then they can
take action to prevent such an event from occurring.
Just like planning, control is a forward-looking
function. With the help of relevant information, early
signs, forecasting, and rapid response systems control
should be directed towards the future.
Principle of Efficiency of Control
If the company goes overboard with setting up a control system,
then, in the long run, it could be harmful to them.
A very extensive control system can be expensive and the cost
benefits can disappear. So it is important that there is
efficiency in the approach and techniques of the control
system.
Deviations from plans, shortfalls, their causes, etc must be
detected at minimum costs and without any unforeseen
consequences.
So the control system must be cost-beneficial to the company.
Not only in monetary terms, but adverse human consequences
must also be avoided at all costs.
Principle of Organizational Suitability
To have an efficient and effective control system, the
organizational structure of the business must be clear
and well integrated. A management control system fit
the manage authority area and it should reflect
the organization structure. When the management
control system is tailored to the structure of the
organization, it pin points the responsibility for action
and facilitates correction of deviation from the plans. In
other words, all figures and reports used for purposes of
control must be in terms of the organization.
Principle of Critical Point Controls. While
exercising control, a manager should focus
attention on the factors, which are critical to
appraising performance. It would he
unnecessary and wasteful for a manager to
check each and every detail of performance.
Therefore, he should concentrate his attention
on critical points of performance.
Principle of Action
The function of control is justified only if positive
remedial action is taken. Only pointing out deviations
or shortfalls from standards is not enough.
Corrective action may involve redrawing plans,
reorganization, replacement or training of a
subordinate, motivation of staff, etc. Control is justified
only when indicated or experienced deviations from
plans are corrected through appropriate, planning,
organizing, staffing and directing.
Principles of Standard
For effective control in the organisation,
the company sets a common standard that
needs to be achieved by the workers. If
deviations noted, they will work on the
drawbacks. This leads to the smooth
functioning of the organization.