Controlling is a four-step process of establishing performance standards based on thefirm's objectives, measuring and reporting actual performance, comparing the two, andtaking corrective or preventive action as necessary. It actually is a process of monitoring performance and taking action to ensure desired results. Performance standards come from the planning function. No matter how difficult, standards should be established for every important task. Although the temptation may be great, lowering standards to what has been attained is not a solution to performance problems. On the other hand, a manager does need to lower standards when they are found to be unattainable ...view middle of the document...
When control is practiced effectively, it can help reduce costs and boosts output. Effective control system can eliminate waste, lower labor costs, and improve output per unit of input. So in management Controlling plays a major role in achieving a specific target.
Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.” 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.” Corrective action is necessary when performance is below standards. If performance is anticipated to be below standards, preventive action must be taken to ensure that the problem does not recur. If performance is greater than or equal to standards, it is useful to reinforce behaviors that led to the acceptable performance. It sees to it that the right things happen, in the right ways, and at the right time. Donewell, 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 also helps maintain compliance with essential organizational rules and policies.
As a part of our “Management of organization” course we are working on Controlling. We believe this study will help us learning the concept of controlling in detailed with various perspective in it. Further more this study will help us learn how to take a group decision effectively as well as how to work in a group efficiently toward a single group task. Besides learning controlling we tried to develop our communication skill by interacting with each other which will help us in the long run while working in an organization.
The purpose of controlling
In many ways the purpose of control should be obvious. The purpose of control is to provide managers with an assessment of where the organization is in comparison to where it is supposed to be at a certain point in time and in terms of one or more indicators of performance.
Areas of controlling
Organizational control can focus on any area of an organization. Two useful ways of identifying areas of control are in terms of resource focus and level.The resource view of control, as shown in the fig: deals with financial, physical, human,and information resources. The management process itself involves efficiently an deffectively combining these resources into appropriate outputs. Control of physicalresources includes inventory management, quality, control, and equipment control.Control of human resources includes selection and placement activities, training anddevelopment, performance appraisal, and compensation levels....