Management Function: Controlling

There are many types of management functions. So what I'm going to focus here is controlling.

DEFINITION

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.

According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action.

According to Donnell, 

“Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”

CHARACTERISTICS

• An end function- A function which comes once the performances are made in confirmities with plans.
• Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
• Forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
• A dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
• Related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

ELEMENTS

The four basic elements in a control system:

• the characteristic or condition to be controlled
• the sensor
• the comparator
• the activator

PROCESS

Step 1. Establishment of Standard.

Step 2. Measurement of actual performance

Step 3. Comparing actual performance with standards.

Step 4. Analysis the cause of deviations.

Step 5. Taking corrective action.

roughly example of controlling in a factory

CLASSIFICATION

Control may be grouped according to three general classifications:[3]

• the nature of the information flow designed into the system (open- or closed-loop control)
• the kind of components included in the design (man or machine control systems)
• the relationship of control to the decision process (organizational or operational control

ADVANTAGES

1. Efficient Execution:

Control is an important pre-requisite for an effective and efficient implementation of the pre-determined plans. It assists in determining variations, pinpointing the factors responsible for them and taking remedial measures.

2. Helps Delegation:

Control can be meaningful only when it is preceded by proper delegation of authority and duties. Thus, it promotes delegation of authority to the employees at lower levels. In this way they develop a sense of involvement in the working of an organisation.

3. Aid to Decentralisation:

The modern trend of business organizations is towards decentralisation which calls for a systematic attempt for controlling. Under decentralisation, the authority of decision making is dispersed throughout the organisation. Management must keep control in its hands to know whether the authority is being used properly. Without adequate controls, decentralisation cannot succeed.

4. Assists Co-ordination:

The size of modern business enterprises is increasing. A huge amount of capital and large number of people are employed in them. This creates the problem of adequate control as there are many divisions producing and distributing different products. In order to co-ordinate their activities, an efficient system of control is required.

5. Simplifies Supervision:

Control simplifies supervision by pinpointing significant deviations. It keeps the employees under check and brings discipline among them. A good system of control detects the weak points very quickly. This helps the expansion of span of control at all levels.

6. Aids to Efficiency:

Basically, control is concerned with ensuring that all the important factors in the enterprise move along the right lines and at the right pace. This assists in promoting efficiency all rounds.

7. Boosts Morale:

Control techniques help in finding the deviations and identifying the factors responsible for the same. This boosts the morale of the employees because they know the work for which they are to be held responsible.

Source: wikipedia, google images, yourarticlelibrary, managementstudyguide