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CHAPTER 7 Intrio To MGMT

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Chapter Seven

Controlling Function of Management

In the series of managerial functions, planning is the first function and controlling is the last.
Success in business is very often proportionate to the astuteness of its planning and the skill
with which it is controlled. Plans can be effectively achieved in most organizations only with
good controls, and planning is always pre-requisite for controlling. Planning seeks to set
goals and programs and control seek to secure performance in accordance with plans.
Definition
a) According to Koontze and O'donnell,, "The managerial function of control is the
measurement and correction of the performance of activities of subordinates in order to
make sure that enterprise objectives and the plans devised to attain them are being
accomplished. It's thus the function of every manager, from the chief executive to the
Forman."
b) "Controlling is the process by which management sees if what did happen was what was
supposed to happen. If not, necessary adjustments are made." Moore.

An analysis of the foregoing statements regarding control brings out the controlling function
of management.
i) Planning is the foundation of control:
Planning sets the course, control observes deviations from the course, and takes corrective
action.
ii) Action's the essence of control:
Control terminates in taking corrective action where there is a deviation in performance from
the desired goals.

iii) Delegation is the key to control:


Control is exercised by taking action, and action can be taken within the authority delegated.
Accountability must be within the authority given to the manager.
iv) Information is the guide to control:
Control exercised by a manager on the basis of the information and reports from those actively
doing the job. Such reports and information may be described as "feed-back" from
subordinates. Feedback enables the manager to determine how far the operations.
THE CONTROL PROCESS
In controlling process there are three steps,
1. Setting standards
2. Measurement of performance
3. Taking corrective action
1) Setting Standards:
Standards may be tangible or intangible. Greater emphasis should be laid on tangible
standards. The standards in tangible terms may be in terms of output, costs, profit, time
persons available for training etc. intangible terms standards may be for the results to be
expected from a training program, employee morale, advertising campaign, etc.

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Organizations create standards to help measure and monitor both productivity and
quality efforts. People and processes are governed by qualitative and quantitative standards.
An organization uses these standards to teach, train, and evaluate organizational performance.

2) Measurement of Performance and comparing it against standards


An organization measures actual performance of people and processes to ascertain if they are
functioning according to plans and expectations. After it has been measured it will be
compared against the established standards.
2) Taking Corrective Actions
As soon as the deviations are reported, it is the duty of the manager concerned to take steps to
correct the past action or at least to bring similar action closer to the standards in future.
When significant deviations from established standards occur, the organization must
determine the cause by identifying the nature and scope of the problem

TYPES OF CONTROLLING
Controlling can be feedforward, concurrent or feedback controls.
1. Feedforward controls are preventive in nature. They are created to screen out possible
causes of problems. Procedures and training can be preventive as well as remedial.
2. Concurrent controls monitor on going operations as they occur in real time, allowing for
instant reactions and the spotting of trends.
3. Feedback controls are after action controls. Inspecting output after an operation has been
performed and soliciting customer feedback are examples of after-action control.
All the three types of controls are important to managers and their organizations. When
designed and used properly, they can prevent, identify, and correct deviations from
established standards.

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