Understanding Controlling in Business

Controlling refers to the process in which the managers assure that the results and activities are in conformity with the planned results and activities.

It identifies whether activities undertaken conform to the instructions issued, plans adopted, and results expected.

The man aim of controlling is to check whether the performance of the work is according to the programmes and plans of an organization. There are few importance of controlling that must be remembered for assignment help or help in homework on the topic, which are as follows:

●     Achievement of Organizational Goals:

The accomplishment of goals and execution of plans is ensured by the managers through the process of controlling. As the activities may not be carried out according to plans in the absence of control, the targets may be missed.

Since, the completion of the assigned work will be delayed, the results may not be achieved. There would be no efficiency in the work performed. In order to detect the mistakes and correct them promptly, control keeps constant watch over performance.

The attainment of the planned results can be ensured, and the organization can be kept on the right track by the managers through the process of controlling.

●     Optimum utilization of resources:

 In order to secure the best possible use of physical, human and financial resources, controlling is essential. It makes sure that the work done is as desired in terms of quality, cost and time.

Wastage of resources and its misuse can be prevented through a good system of control. The quality can be improved, and the cost of operations can be minimized with the help of controlling.

●     Decentralization of Authority:

 Delegation of authority is facilitated through an effective system of control.

In order to ensure that the decisions taken at the lower levels are consistent with the interests and policies of the organization, managers take the help of feedback information. Control helps management in monitoring finances, scales, etc. and in minimizing errors.

●     Means of Coordination:

 By laying down standards of performance, controlling facilitates coordination between different departments. In order to accomplish the common objectives, all activities and efforts are directed in the same direction only.

Harmony in work efforts can be secured through the managerial control at different levels of the organization. The duplication of activities and there overlapping is avoided.

●     Better employee morale:

 Order and discipline in the organization can be ensured through controlling. Employees have an advanced knowledge of what they are expected to do and the basis on which their performance will be checked.

Hence, they are not likely to be negligent or careless. The employees, in order to perform well and earn rewards are induced by the evaluation of performance against predetermined standards. Thus, employee performance can be improved through control.

There are few steps which are to be kept in mind during the process of controlling, and that would offer assignment help to the students. The steps are as follows:

1.   Establishment of Performance Standards:

The first step which is required in the process of control is to establish the standards so that the actual results can be evaluated through it.

In order to compare the actual performance, it is important that we establish the standards as it is the criteria on the basis of which comparison is made.

The performance of different individuals is measured through different standards. Physical standards are those that are expressed in physical terms such as man hours, number of units, etc.

whereas monetary standards are expressed in monetary terms such as revenue, sales, expenses, etc.

in addition to these tangible standards, there are intangible standards as well like customer service, reputation of the firm, etc. the standards are fixed by the managers in the light of organizational goals.

2.   Measurement of Actual Performance:

 The next step in the process of controlling is to measure the actual performance. In which the standards have been established, the same tern should be used to measure the performance as it will help in facilitating the comparison.

The oral or written reports or personal obligations can also help in measuring the performance. An effective system of reporting is required for the accurate and timely measurement of results.

3.   Comparison of Actual Performance with Standards:

 The comparison is drawn between the actual performance and the standards or planned targets. Such comparison tells us about the extent till which the performance can be deviated form the standards.

If at all the performance matches the standards, an assumption can be made that everything is under control. It becomes necessary to find out the extent of deviation at the time when the performance is not up to the standards.

4.   Analyzing deviations:

 It will neither be economical nor feasible to control all the deviations. Hence, it becomes necessary to make sure that the acceptable range of deviations are determined. Control by exception and critical point control can provide help to this purpose.

a)     Critical Point Control:

 This principle states that the control should focus more in the Key Result Areas (KRAs) which are known to be critical for the success of the organization. The entire organization has to suffer when anything goes wring in these areas.

b)    Control by Exception:

Instead of trying to control each and every deviation form the standards, it is better to control on exceptional deviations.

Rather than controlling all activities, management should focus on the exceptions. This process is came to be known as management by exception or control by exception. It helps in saving money, time and efforts.

5.   Taking corrective actions:

 Controlling is not bind up in detecting errors and defect in the performance. Until remedial actions are taken to prevent deviations in future, the process of control is incomplete. Therefore, corrective action is initiated based upon the factors which are responsible for causing deviations between the actual results and standards.

Hence, corrective actions must involve changes in working conditions, organizational structure, employee training, machinery, incentives, supervision, etc. Therefore, this was all one needs to get help in homework on the topic of planning in management.

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