Definition оf controlling. The Control Process

Controlling is one of the four management functions. Control begins with objectives and standards. Control measures actual performance. Control compares results with objectives and standards. Control takes corrective action as needed. Control focuses on work inputs, throughputs, and outputs.

Controlling:

A process of monitoring performance and taking action to ensure desired results.

It sees to it that the right things happen, in the right ways, and at the right time.

Done well, it ensures that the overall directions of individuals and groups are consistent with short and long range plans.

It helps ensure that objectives and accomplishments are consistent with one another throughout an organization.

It helps maintain compliance with essential organizational rules and policies.

Cybernetic Control System

¨ One that is self-contained in its performance monitoring and correction capabilities. (thermostat)

¨ The control process practiced in organizations is not cybernetic, but it does follow similar principles.

The Control Process

ü Establish objectives and standards.

ü Measure actual performance.

ü Compare results with objectives and standards.

ü Take necessary action.

Establish Objectives and Standards. Measuring Actual Performance

The control process begins with planning and the establishment of performance objectives. Performance objectives are defined and the standards for measuring them are set. There are two types of standards:

¨ Output Standards - measures performance results in terms of quantity, quality, cost, or time.

¨ Input Standards - measures work efforts that go into a performance task.

Measuring Actual Performance

Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.

Without measurement, effective control is not possible.

Comparing Results with Objectives and Standards

-The comparison of actual performance with desired performance establishes the need for action.

-Ways of making such comparisons include:

-Historical / Relative / Engineering

-Benchmarking

Taking Corrective Action

· Taking any action necessary to correct or improve things.

· Management-by-Exception focuses managerial attention on substantial differences between actual and desired performance.

· Management-by Exception can save the managers time, energy, and other resources, and concentrates efforts on areas showing the greatest need.

· There are two types of exceptions:

ü Problems - below standard

ü Opportunities - above standard

Effective Controls

The Best Controls in Organizations are:

-Strategic and results oriented

-Understandable

-Encourage self-control

-Timely and exception oriented

-Positive in nature

-Fair and objective

-Flexible

 

Types of control

ü Preliminary

- Sometimes called the feedforward controls, they are accomplished before a work activity begins.

- They make sure that proper directions are set and that the right resources are available to accomplish them.

ü Concurrent

Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly.

ü Postaction

Sometimes called feedback controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities.

Managers have two broad options with respect to control.

· They can rely on people to exercise self-control (internal) over their own behavior.

· Alternatively, managers can take direct action (external) to control the behavior of others.

Internal Controls. Allows motivated individuals to exercise self-control in fulfilling job expectations. The potential for self-control is enhanced when capable people have clear performance objectives and proper resource support.

External Controls. It occurs through personal supervision and the use of formal administrative systems. Performance appraisal systems, compensation and benefit systems, employee discipline systems, and management-by-objectives.