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1. 6 . Controlling as a Management function 1/15/2025 1

2. Session objectives At the end of this session the student will be able to : Define controlling function of management Understand feedback sphere & basic steps in the controlling process 1/15/2025 2

3. 3 Controlling defined A process of monitoring performance and taking action to ensure desired results . Control is the final link in the chain of management activities. It is a decision making process; Without it, efficient planning, solid organizational structure, & motivated employees are no guarantee of success 1/15/2025

4. 4 Controlling… It helps to ensure that objectives and accomplishments are consistent with one another throughout the organization . Control is not an end by itself rather it is to improve performance by ensuring that resources are more effectively deployed , & that mistakes are rectified. It is mostly exercised at lower points in the managerial hierarchy 1/15/2025

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6. 6 Controlling… Purposes of the control function The primary aim of control is to improve performance Helps managers monitor the effectiveness of planning, organizing, leading & take corrective actions as needed. 1/15/2025

7. Controlling… Pre- requisites of control systems Controls require plans : The clearer, more complete & more integrated plans are; the more effective control action can be. Controls require clear organizational structure : The clearer, more complete, & more integrated the structure is, the more effective control action can be 1/15/2025 7

8. Features of Controlling Function Following are the characteristics of controlling function of management- Controlling is an end function- A function which comes once the performances are made in conformities with plans. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns. Controlling is forward looking- Controlling always look to future so that follow-up can be made whenever required. 1/15/2025 8

9. Features of Controlling… Controlling is a dynamic process- Since controlling requires taking reviewal methods, changes have to be made wherever possible. Controlling is related with planning- Planning and controlling are two in separable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning . 1/15/2025 9

10. Types of controls 1.Feed forward control [Preliminary ] The active anticipation & prevention of problems, rather than passive reaction. Monitoring inputs Helps to make sure that proper directions are set and that the right resources are available to accomplish them. 2.Concurrent control [steering] Monitoring & adjusting ongoing activities & processes to make sure that things are being done correctly. 3.Feedback control outputs/products [Post action] Checking a completed activity & learning from mistakes. 1/15/2025 10

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13. 13 Types of Control 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. 1/15/2025

14. 14 Types of Control…. 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 . 1/15/2025

15. 15 The Controlling Process Establish objectives and standards. Measure actual performance. Compare results with objectives and standards. Take necessary action. 1/15/2025

16. 16 The Controlling Process….. 1. Establish Objectives and Standards 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. 1/15/2025

17. 17 The Controlling Process….. 2. 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. 3. Comparing Results with Objectives and Standards The comparison of actual performance with desired performance establishes the need for action. 1/15/2025

18. 18 The Controlling Process….. 4. 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: Problems - below standard Opportunities - above standard 1/15/2025

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21. Many Thanks!! 1/15/2025 21