Controlling & its Importance in Management, Contemporary Management Video Lecture | Contemporary Management - B Com

controlling a manager performs various
tasks such as planning organizing
staffing and directing to attain
organizational goals
besides these a manager needs to check
if his subordinates are performing their
tasks as for the required standards or
not if he thinks that the performance is
below standards he needs to take
corrective action for the same the
process of monitoring organizational
performance towards the attainment of
organizational goals is controlling
controlling is one of the five functions
of management the task of controlling
involves establishing standards of
performance at the time of planning
measuring current performance comparing
this with established standards and
taking corrective action where any
deviation is found controlling is a
goal-oriented function as it ensures
that the resources of an organization
are being used effectively and
efficiently for the achievement of
predetermined goals controlling sees to
it that the right things happen in the
right ways and at the right time
a good controlling system comes to the
rescue of a manager and helps an
organization in different ways through
controlling function a manager can keep
his team on the right track
to achieve organizational goals an
efficient controlling system helps a
manager to verify the accuracy of the
standard set he can also review and
revise the standards as per the changes
taking place in and out of an
organization through an efficient
controlling system through an efficient
controlling system a manager can ensure
that resources are used in the most
effective and efficient manner a good
controlling system motivates employees
and helps them to perform better the
controlling function tells employees
about the work they expected to do as
well as about the standards of
performance on the basis of which they
will be appraised an efficient
controlling system helps to minimize
dishonest behavior on the part of the
employees by keeping a close check on
their day-to-day activities the
controlling function also facilitates
coordination in an organization each
department and employees in an
organization is governed by
predetermined standards that are well
coordinated with one another to attain
organizational goals
controlling is very important managerial
function it is concerned with taking
measures or preventive actions to ensure
achievement of organizational goals
controlling is a five-step process of
establishing performance standards based
on the organization's objectives
measuring actual performance comparing
the to analyzing the deviation and
taking corrective or preventive action
as necessary establishment of standards
the control process begins with the
establishment of performance objectives
or standards standards are the plans or
the targets which have to be achieved in
the course of business function these
are the Criterion's for judging the
actual performance standards can be
broadly classified into measurable
tangible or quantitative standards and
non-measurable intangible or qualitative
standards those standards which can be
measured and expressed in numbers or in
terms of money are called as measurable
tangible or qualitative standards they
can be in the form of cost output
expenditure time profit etc those
standards which cannot be measured
monetarily or in numbers can be termed
as non measurable intangible or
qualitative standards for example
performance of a manager workers
attitudes towards an organization and
others
it is important to have flexible
standards so that it can be modified
with the change in the internal and
external business environment
measurement of actual performance after
setting standards the second step is to
measure the actual performance of
individuals groups or units the
measurement of tangible standards is
easy as it can be expressed in units
cost money terms etc while the
measurement of quantitative measurement
becomes difficult when performance of an
individual has to be measured the
measurement can be done through personal
observation written or oral reports by
or about employees automatic methods
inspections tests or samples comparison
of actual performance with standards the
comparison of actual performance with
predetermined standards is an important
step in control process such comparison
will reveal the deviation between actual
and desired results let's take an
example Serratia is working as a manager
with PQR Private Limited which produces
shoes the company plans to sell about 1
lakh shoes in six months that is about
17,000 shoes per month but Suresh
discovered that his production team
could produce only 10,000 shoes in a
month here the deviation is in terms of
production
analyzing deviations after determining
deviations a manager has to find out the
extent of deviation as well as the cause
of deviation extent of deviation means
that the manager has to find out whether
the deviation is positive or negative or
whether the actual performance is in
conformity with a planned performance in
our example the deviation is in terms of
production and is negative even under
the best of circumstances deviations
from performance standards are
inevitable
therefore the managers have to exercise
management by exception a manager needs
to find out the critical and important
deviations for his business he may
ignore minor deviations but should look
upon major deviations like replacement
of machinery appointment of workers
quality of raw material rate of profits
etc consciously in the given example the
deviation is a major one as less
production will affect the company's
profits also once the deviation is
identified a manager has to think about
various causes behind the deviation the
causes may be erroneous planning
unrealistic standards the effective
process inadequacy of resources
ineffective supervision and
communication etc
in the given example Suresh discovered
that the main cause behind low
production was inadequate number of
manpower taking corrective actions
finally once the causes and the extent
of deviations are known a manager needs
to take remedial measures for them after
discovering the reason behind low
production Suresh decided to increase
the strength of employees in the
production unit if a manager finds that
the actual performance is not in
conformity with plans even after taking
the corrective measures he needs to
revise the targets to summarize control
is an essential function of management
in every organization the management
process is incomplete and sometimes
useless without the control function the
term control has different meanings in
different contexts in the management
context control refers to the evaluation
of performance and the implementation of
corrective actions to accomplish
organizational objectives
controlling thus plays an important role
in helping managers detect
irregularities identify opportunities
handle complex situations decentralized
Authority minimize costs and cope with
uncertainty