CH 13 CONTROLLING

L-15-

CONTROLLING

MEANING AND DEFINITION OF CONTROLLING

Controlling is a fundamental function of management that involves monitoring, evaluating, and regulating the performance of individuals, departments, and the organization as a whole. It aims to ensure that actual performance aligns with planned objectives, standards, and expectations. Controlling involves measuring performance, comparing it to predetermined standards, identifying deviations, and taking corrective actions as necessary.

In simpler terms, controlling can be defined as the process of monitoring and adjusting activities to ensure that goals and objectives are achieved effectively and efficiently. It involves setting standards, measuring performance against those standards, and taking corrective actions to keep performance on track.

 

Controlling encompasses various activities and steps, including:

Establishing Standards: Standards serve as benchmarks or targets against which actual performance is measured. They can be quantitative (e.g., sales targets, production quotas, financial ratios) or qualitative (e.g., customer satisfaction levels, quality standards). Establishing clear standards provides a basis for evaluation and control.

Measuring Performance: This step involves gathering data and information to assess actual performance against the established standards. Measurement can be done through various methods, such as financial statements, performance indicators, feedback from customers, employee evaluations, and reports.

Comparing Performance: Once performance is measured, a comparison is made between actual performance and the set standards. This comparison helps identify any deviations or gaps that exist. It provides insights into areas where performance is meeting expectations and where improvements or corrective actions are needed.

Analyzing Deviations: Deviations or variances between actual performance and standards are analyzed to understand their causes and implications. This analysis helps determine whether the deviations are within acceptable limits or require immediate attention. It enables managers to identify trends, patterns, and root causes of performance issues.

Taking Corrective Actions: Based on the analysis of deviations, managers take appropriate corrective actions to bring performance back on track. Corrective actions can involve adjusting processes, reallocating resources, providing additional training or support, revising plans, or implementing new strategies. The goal is to address the underlying issues and ensure that performance aligns with desired outcomes.

Feedback and Evaluation: Controlling also involves providing feedback and evaluation to individuals or teams regarding their performance. This feedback helps employees understand how their work contributes to the organization's goals and provides guidance for improvement. Regular performance evaluations are conducted to assess progress, identify development needs, and recognize achievements.

Controlling is an ongoing process that occurs throughout the management cycle. It helps in maintaining the desired course of action, identifying deviations, and taking timely corrective measures. By ensuring effective control, organizations can optimize performance, minimize risks, and enhance overall efficiency and effectiveness.

CHARACTERISTICS/NATURE OF CONTROLLING

The characteristics or nature of controlling can be described as follows:

Goal-oriented: Controlling is driven by the organization's goals and objectives. It focuses on ensuring that performance aligns with these goals. Controlling activities are directed towards achieving desired outcomes and maintaining progress towards predetermined targets.

Continuous Process: Controlling is a continuous and ongoing process. It is not a one-time event but a recurring activity that happens throughout the management cycle. It involves regular monitoring, evaluation, and adjustment to keep performance on track and address any deviations that may occur.

Feedback-oriented: Controlling relies on feedback mechanisms to gather information about performance. It involves collecting data, analyzing it, and providing feedback to managers and employees. Feedback helps in identifying strengths and weaknesses, understanding performance gaps, and taking appropriate corrective actions.

Standards and Measurement: Controlling establishes standards or benchmarks against which performance is measured. These standards can be quantitative (such as financial targets, production quotas) or qualitative (such as customer satisfaction ratings). Measurement of actual performance against standards provides a basis for evaluation and decision-making.

Corrective Action: Controlling involves taking corrective actions when deviations from standards are identified. Managers analyze the causes of deviations and implement appropriate measures to address the issues. Corrective actions may include adjusting processes, providing training, reallocating resources, revising plans, or implementing new strategies to improve performance.

Forward-looking: While controlling evaluates past and current performance, it also has a forward-looking perspective. It focuses on identifying potential issues and taking proactive measures to prevent problems before they occur. Controlling helps in identifying trends, patterns, and potential risks that may impact future performance.

Flexibility: Controlling requires flexibility to adapt to changing circumstances and conditions. As the business environment evolves, controlling activities need to be adjusted accordingly. It involves monitoring and adjusting performance measures, revising standards, and modifying corrective actions to ensure their relevance and effectiveness.

Responsibility of Managers at All Levels: Controlling is not solely the responsibility of top-level managers. It is a shared responsibility across all levels of management. Each manager has a role in monitoring and controlling the performance of their respective areas. Front-line managers are responsible for day-to-day control, while middle and top-level managers oversee broader control processes.

Integration with Other Functions: Controlling is closely interconnected with other management functions such as planning, organizing, and directing. It supports these functions by providing feedback on the effectiveness of plans, the allocation of resources, and the execution of activities. Controlling helps in evaluating whether these functions are being carried out as intended and making adjustments if needed.

Systematic and Objective: Controlling is a systematic and objective process. It involves the use of data, metrics, and performance indicators to evaluate performance. Controlling activities should be based on accurate and reliable information to ensure objectivity and fairness in assessing performance.

Overall, the nature of controlling is focused on monitoring performance, comparing it to standards, and taking corrective actions to ensure that organizational goals are achieved. It is an ongoing, feedback-oriented, and dynamic process that requires the active involvement of managers at all levels.

IMPORTANCE/BENEFITS OF CONTROLLING

Controlling is a crucial function of management that offers several important benefits and plays a significant role in the overall success and effectiveness of an organization. Here are some of the key importance and benefits of controlling:

Achievement of Organizational Objectives: Controlling helps in ensuring that organizational objectives and targets are achieved. By monitoring performance and taking corrective actions, controlling ensures that activities are aligned with the desired outcomes and progress is made towards the organizational goals.

Performance Improvement: Controlling helps in identifying areas where performance falls short of expectations or standards. It provides feedback and evaluation that can be used to improve performance. By analyzing deviations and implementing corrective measures, controlling enhances efficiency, productivity, and quality of work.

Decision Making: Controlling provides managers with accurate and timely information about the performance of various activities and departments. This information serves as a basis for decision-making. It helps managers identify problems, assess alternatives, and make informed choices to address issues and improve performance.

Resource Optimization: Controlling ensures that resources, including human resources, financial resources, and physical assets, are utilized effectively and efficiently. By monitoring resource allocation and usage, controlling helps in identifying areas of wastage or inefficiency. It enables managers to reallocate resources and make adjustments to maximize their utilization and minimize unnecessary costs.

Risk Management: Controlling plays a crucial role in identifying and managing risks within the organization. It helps in detecting deviations from established standards or procedures that may lead to potential risks or losses. By taking timely corrective actions, controlling helps in mitigating risks and minimizing their impact on the organization.

Accountability and Responsibility: Controlling helps in establishing accountability and responsibility within the organization. By monitoring performance and comparing it to standards, controlling highlights areas of responsibility for managers and employees. It encourages individuals to take ownership of their tasks, enhances transparency, and fosters a culture of accountability.

Coordination and Communication: Controlling promotes coordination and communication within the organization. Through the monitoring and evaluation of performance, controlling facilitates the exchange of information, feedback, and coordination among different departments and teams. It helps in aligning efforts, resolving conflicts, and promoting collaboration towards common goals.

Motivation and Employee Engagement: Controlling provides feedback and evaluation of individual and team performance. Positive feedback and recognition for achieving targets or meeting standards can motivate employees and boost their engagement. On the other hand, feedback on areas needing improvement can guide employees towards enhancing their performance and skills.

Evaluation of Plans and Strategies: Controlling enables the evaluation of the effectiveness of plans, strategies, and policies. By comparing actual performance with planned targets, controlling helps in assessing the success of various initiatives. This evaluation provides insights into the strengths and weaknesses of plans and strategies, allowing for necessary adjustments and improvements.

Legal and Regulatory Compliance: Controlling ensures that the organization complies with legal and regulatory requirements. By monitoring activities and performance against established standards and regulations, controlling helps in identifying any non-compliance issues. It enables the organization to take corrective actions and avoid legal penalties or reputational damage.

In summary, controlling is of great importance to organizations as it helps in achieving objectives, improving performance, optimizing resources, managing risks, and fostering accountability and coordination. It supports decision-making, enhances communication, and promotes a culture of continuous improvement and excellence. Controlling is a vital tool for effective management and contributes significantly to the overall success and competitiveness of an organization.

LIMITATIONS OF CONTROLLING

While controlling is an important function of management, it also has certain limitations and challenges that organizations need to be aware of. Some of the key limitations of controlling include:

Incomplete Information: Controlling relies on accurate and timely information to evaluate performance and make informed decisions. However, obtaining complete and reliable information can be challenging. Data may be incomplete, outdated, or biased, which can affect the accuracy of control measures and decision-making.

Cost and Time Constraints: Implementing controlling measures can be time-consuming and costly. Establishing control systems, collecting data, and conducting performance evaluations require resources and investment. Small organizations with limited resources may find it challenging to implement comprehensive control mechanisms.

Resistance to Control: Employees or managers may resist control measures, perceiving them as intrusive or hindering their autonomy. This resistance can undermine the effectiveness of controlling efforts and create a negative work environment. It is important to communicate the benefits and objectives of controlling to gain acceptance and cooperation.

Difficulty in Quantifying Performance: Some aspects of performance, such as employee morale, creativity, or teamwork, can be challenging to quantify objectively. Controlling measures often rely on quantitative metrics, which may not capture the full picture of performance. This limitation can lead to a narrow focus on easily measurable aspects of performance, overlooking critical qualitative factors.

Dynamic and Complex Environment: Organizations operate in dynamic and complex environments that constantly evolve. Controlling measures may struggle to keep pace with these changes. The rigid control systems may not adapt quickly enough to new challenges, emerging trends, or technological advancements, limiting their effectiveness.

Focus on Past Performance: Controlling primarily focuses on evaluating and managing past performance. While it is essential to learn from past experiences, relying solely on historical data may limit the ability to anticipate future challenges or identify emerging opportunities. Forward-looking aspects of performance may be neglected in the controlling process.

Overemphasis on Control: Excessive control can create a bureaucratic and restrictive work environment. It may stifle innovation, creativity, and employee empowerment. A rigid control system can hinder adaptability and responsiveness to changing market conditions or customer needs.

Unrealistic Standards: Establishing unrealistic or overly challenging standards can demotivate employees and create a culture of fear or pressure. If employees perceive that the standards are unachievable, it may lead to stress, lower morale, and a decline in productivity.

Lack of Flexibility: Controlling measures need to strike a balance between control and flexibility. Excessive control can hinder agility and the ability to seize opportunities. The control systems should allow for adjustments, exceptions, and adaptation to changing circumstances.

Inherent Limitations of Control: Control measures can provide an indication of performance, but they cannot guarantee success or eliminate all risks. Controlling has its limitations in capturing intangible aspects, such as employee motivation, customer perceptions, or external market forces. It is essential to recognize that controlling is one tool among many in managing an organization.

Overall, while controlling offers numerous benefits, organizations should be mindful of these limitations and take a balanced approach that considers the specific context, culture, and requirements of the organization. Effective control systems should be flexible, adaptive, and complemented by other management practices to ensure comprehensive management oversight.

ESSENTIALS OF A GOOD CONTROL SYSTEM

A good control system is crucial for effective management and achieving organizational goals. The following are the essentials of a good control system:

Clear Objectives and Standards: A control system should be based on clear and well-defined objectives and standards. These objectives and standards should be specific, measurable, achievable, relevant, and time-bound (SMART). Clear objectives provide a benchmark against which performance can be evaluated, while standards serve as the criteria for measuring actual performance.

Accurate and Timely Information: A good control system requires accurate and timely information to monitor performance effectively. It is important to establish reliable systems for collecting, analyzing, and reporting data related to key performance indicators (KPIs). The information should be up-to-date, relevant, and readily accessible to managers responsible for control.

Adequate Feedback Mechanism: An essential aspect of a control system is the presence of a feedback mechanism. Feedback provides information on actual performance and helps identify any deviations from the desired standards. Feedback should be timely, specific, and actionable. It enables managers to make informed decisions and take corrective actions when necessary.

Exception Reporting: A good control system incorporates exception reporting, which focuses attention on significant deviations from the established standards. Instead of overwhelming managers with every minor deviation, the system highlights exceptional situations that require immediate attention. Exception reporting allows managers to prioritize their efforts and resources effectively.

Flexibility and Adaptability: A control system should be flexible and adaptable to accommodate changes in the internal and external business environment. It should be capable of adjusting performance measures, standards, and control mechanisms to reflect evolving circumstances. Flexibility allows the system to respond to new challenges and seize emerging opportunities.

Balance Between Control and Empowerment: A good control system strikes a balance between control and empowerment. It provides managers with the necessary control mechanisms to monitor performance and ensure accountability, while also empowering employees to take ownership of their work and make decisions within their areas of responsibility. This balance fosters a sense of autonomy, creativity, and innovation while maintaining effective control.

Integration with Planning and Decision-Making: A control system should be closely integrated with the planning and decision-making processes. It should support the setting of objectives, development of plans, and allocation of resources. By aligning control with the overall strategic direction, the system ensures that performance evaluation is linked to the achievement of organizational goals.

Regular Evaluation and Review: A good control system requires regular evaluation and review to assess its effectiveness and make necessary improvements. Managers should periodically review the control mechanisms, performance measures, and standards to ensure their relevance and appropriateness. Continuous monitoring and feedback allow for timely adjustments and refinements to enhance the control system's effectiveness.

Ethical Considerations: A sound control system should uphold ethical standards and promote integrity throughout the organization. It should discourage unethical behavior and ensure compliance with legal and regulatory requirements. Ethical considerations should be embedded in the control mechanisms to foster a culture of trust, transparency, and ethical conduct.

Continuous Improvement Orientation: A good control system is characterized by a continuous improvement orientation. It encourages a learning mindset and emphasizes the identification of areas for improvement. The system should enable managers and employees to analyze performance data, identify root causes of deviations, and implement corrective actions. Continuous improvement ensures that the control system evolves and remains effective over time.

By incorporating these essentials, organizations can establish a robust control system that supports effective management, enhances performance, and contributes to the achievement of organizational goals.

RELATIONSHIP BETWEEN PLANNING AND CONTROLLING

Planning and controlling are two essential functions of management that are closely interrelated and mutually supportive. The relationship between planning and controlling can be described as follows:

Planning Sets the Foundation: Planning lays the foundation for controlling. It involves setting goals, developing strategies, and determining the actions needed to achieve desired outcomes. During the planning process, managers establish performance targets, define the criteria for success, and identify the resources required. The planning phase provides the basis for establishing the standards and expectations against which actual performance will be measured during the controlling process.

Controlling Monitors Performance against Plans: Controlling involves monitoring actual performance against the established plans and standards. It compares the actual results with the desired outcomes and identifies any deviations or variances. By measuring and evaluating performance, controlling provides feedback on the effectiveness of the plans and strategies formulated during the planning phase. It helps in assessing whether the organization is on track and whether adjustments are needed to achieve the desired objectives.

Controlling Supports Decision Making: Controlling provides managers with accurate and timely information about the performance of various activities and departments. This information serves as a basis for decision-making. When deviations are identified through the controlling process, managers can analyze the causes, assess the impact on the overall objectives, and make informed decisions about corrective actions or adjustments to the plans. Controlling ensures that decisions are based on actual performance data and the information derived from monitoring the progress of the plans.

Feedback Loop between Planning and Controlling: The relationship between planning and controlling forms a feedback loop. As controlling identifies deviations and variances, it provides valuable feedback to the planning process. This feedback helps in evaluating the effectiveness of the plans and strategies formulated during the planning phase. If the actual performance deviates significantly from the planned targets, it may indicate a need to revise the plans, set new objectives, or adjust the strategies to better align with the current realities of the business environment.

Continuous Improvement: The relationship between planning and controlling supports a continuous improvement mindset within the organization. Controlling identifies areas of improvement, highlights performance gaps, and triggers the need for corrective actions. The feedback provided through controlling informs the planning process, enabling managers to incorporate lessons learned and make necessary adjustments to future plans. The iterative nature of the planning-controlling cycle allows for ongoing refinement and enhancement of organizational performance.

Integration and Alignment: Planning and controlling work hand in hand to ensure alignment and integration across various organizational functions. Planning sets the direction and goals, while controlling ensures that performance aligns with the established plans. Controlling helps in evaluating whether the resources allocated during the planning phase are being effectively utilized. It provides a mechanism for monitoring progress and coordinating activities to ensure that the efforts of different individuals and departments are synchronized towards the achievement of common objectives.

In summary, planning and controlling are interconnected and mutually reinforcing functions of management. Planning provides the framework for setting goals and developing strategies, while controlling monitors performance, provides feedback, and supports decision-making. The relationship between planning and controlling forms a continuous feedback loop that promotes continuous improvement and helps organizations achieve their objectives effectively.

STEPS/ELEMENTS OF PROCESS OF CONTROLLING

The process of controlling involves several steps or elements that are essential for effective implementation and management of the control system. The following are the key steps or elements of the controlling process:

Establishing Standards: The first step in the controlling process is to establish standards or benchmarks against which performance will be measured. Standards can be set for various aspects such as quality, quantity, cost, time, and efficiency. These standards should be specific, measurable, attainable, relevant, and time-bound (SMART) to provide a clear basis for evaluation.

Measuring Performance: Once the standards are established, the next step is to measure actual performance. This involves collecting data and information related to the performance indicators identified for each standard. The data can be obtained through various means such as observation, reports, performance metrics, surveys, and feedback mechanisms.

Comparing Performance against Standards: After measuring the actual performance, it needs to be compared against the established standards. This step involves analyzing the data and identifying any deviations or variances. The comparison highlights the gaps between actual performance and the desired standards, indicating areas of concern or improvement.

Analyzing Deviations: In this step, deviations from the standards are analyzed to determine the root causes and factors contributing to the variances. This analysis helps in understanding the reasons behind the deviations and provides insights into the underlying issues that need to be addressed. It may involve examining processes, procedures, resources, skills, or external factors affecting performance.

Taking Corrective Actions: Once the deviations are analyzed, appropriate corrective actions are taken to address the identified issues and bring performance back on track. Corrective actions may involve making adjustments to processes, reallocating resources, providing additional training, improving communication, or revising plans and strategies. The actions taken should be targeted towards closing the performance gaps and aligning performance with the desired standards.

Follow-up and Evaluation: After implementing corrective actions, it is important to follow up and evaluate the effectiveness of the actions taken. This step involves monitoring the progress and measuring the impact of the corrective measures. It helps in determining whether the actions have successfully resolved the deviations and improved performance. If necessary, further adjustments or refinements can be made based on the evaluation results.

Feedback and Communication: Throughout the controlling process, feedback and communication play a vital role. Feedback involves providing information about performance to individuals and teams, highlighting areas of strength and improvement. It fosters a culture of transparency, accountability, and continuous learning. Effective communication ensures that performance expectations, standards, and corrective actions are clearly communicated to all relevant stakeholders.

Documentation and Record-Keeping: It is important to document the entire controlling process, including the standards, measurements, deviations, corrective actions, and evaluation results. Proper documentation serves as a reference for future analysis, decision-making, and improvement efforts. It also helps in maintaining accountability, tracking progress, and ensuring consistency in control implementation.

Continuous Improvement: The controlling process is iterative and requires a continuous improvement mindset. It involves a cycle of monitoring, analysis, corrective actions, and evaluation. By continuously evaluating and refining the control system, organizations can enhance performance, adapt to changing circumstances, and align with evolving goals and objectives.

By following these steps and elements of the controlling process, organizations can effectively monitor performance, identify deviations, take corrective actions, and improve overall organizational effectiveness and efficiency.

CONTROL BY EXCEPTION

Control by exception is a management approach that focuses on monitoring and intervening only when significant deviations occur from established standards or expectations. Instead of examining every detail or aspect of performance, managers concentrate their attention on exceptional cases that fall outside predefined thresholds or tolerances. The concept behind control by exception is to allow managers to prioritize their time and resources by focusing on the most critical issues that require their attention. Here are some key points to understand about control by exception:

Thresholds and Deviation Criteria: Control by exception requires setting clear thresholds or criteria for what constitutes a significant deviation or exception from the established standards. These thresholds can be quantitative (e.g., a certain percentage increase in costs) or qualitative (e.g., a specific quality issue). These criteria act as triggers for managers to become aware of and address exceptional cases.

Focus on Deviations: The primary focus of control by exception is to identify and address significant deviations rather than examining every aspect of performance. It allows managers to trust that routine operations will proceed smoothly as long as they fall within acceptable limits. Managers intervene and take action only when deviations exceed the predetermined thresholds.

Managerial Discretion: Control by exception gives managers discretion and decision-making authority in dealing with exceptional cases. They have the responsibility to assess the situation, determine the appropriate response, and take necessary corrective actions. This approach empowers managers to exercise judgment and adapt to specific circumstances.

Efficient Resource Allocation: Control by exception helps in efficient resource allocation by concentrating managerial efforts on critical issues. Instead of spending time reviewing routine and expected outcomes, managers can focus on resolving exceptional cases and addressing underlying causes. This approach allows them to allocate their time, attention, and resources to areas that require immediate action, thus enhancing overall efficiency.

Prompt Response: Control by exception emphasizes timely response to significant deviations. By promptly identifying and addressing exceptions, managers can mitigate potential risks, prevent further deterioration, and minimize the negative impact on organizational performance. This proactive approach enables timely decision-making and corrective actions.

Effective Communication and Reporting: Control by exception relies on effective communication and reporting systems. Managers need to have access to accurate and timely information on performance deviations. Exception reporting mechanisms ensure that relevant information is communicated to managers when deviations occur, allowing them to take appropriate action.

Clarifying Roles and Responsibilities: Control by exception requires clearly defined roles and responsibilities for managers and employees. Managers need to clearly communicate the standards, thresholds, and expectations to employees. Employees, on the other hand, are responsible for adhering to the established standards and promptly reporting exceptional cases that require attention.

Potential Limitations: While control by exception offers several advantages, it is not suitable for every situation. Certain contexts may require more frequent and detailed monitoring, especially in high-risk or highly regulated environments. Additionally, setting appropriate thresholds and deviation criteria requires careful consideration to avoid either excessive intervention or overlooking critical issues.

Control by exception is a management approach that enables managers to prioritize their focus and resources on significant deviations that require intervention. By focusing on exceptional cases, managers can effectively manage performance, allocate resources efficiently, and ensure timely corrective actions, leading to improved organizational effectiveness and efficiency.

SPAN OF CONTROL

 

Span of control, also known as span of management or span of supervision, refers to the number of subordinates or employees that a manager can effectively oversee and manage. It represents the breadth and depth of a manager's supervisory responsibilities within an organization. The span of control is an important consideration in organizational design and management structure. Here are some key points about span of control:

Definition: Span of control refers to the number of employees reporting directly to a manager or supervisor. It signifies the direct hierarchical relationship between a manager and their subordinates.

Wide Span of Control: In a wide span of control, a manager has a larger number of direct reports. This means that the manager supervises a broad range of employees or departments. A wide span of control is often associated with a flatter organizational structure, where there are fewer levels of management. It promotes decentralization, empowerment, and quick decision-making. It is suitable when employees are highly skilled, self-motivated, and capable of working independently.

Narrow Span of Control: In a narrow span of control, a manager has a smaller number of direct reports. This means that the manager has a more concentrated focus on each individual or team. A narrow span of control is often associated with a taller organizational structure, where there are more levels of management. It allows for closer supervision, more guidance, and a higher level of control over operations. A narrow span of control is suitable when employees require more supervision, training, and guidance.

Factors Influencing Span of Control: Several factors influence the appropriate span of control in an organization. These factors include the complexity of tasks, the level of employee autonomy and responsibility, the level of standardization and control required, the nature of the work being performed, the level of employee skills and experience, the communication and coordination requirements, and the availability of managerial resources (time, expertise, etc.). It is essential to consider these factors when determining the appropriate span of control for a given managerial position.

Impact on Communication and Decision-Making: The span of control has a direct impact on communication and decision-making processes within an organization. In a wide span of control, communication channels may be more direct and informal, with fewer layers of management. Decision-making can be quicker, as there are fewer levels of approval. In a narrow span of control, communication channels may be more formal and structured, with more layers of management involved in the decision-making process.

Managerial Effectiveness: The appropriate span of control can contribute to managerial effectiveness. A manager with an overly wide span of control may struggle to provide sufficient attention, guidance, and support to individual subordinates. This can result in reduced communication, lack of oversight, and decreased employee satisfaction. On the other hand, a manager with an overly narrow span of control may become overwhelmed, micromanage, and impede the efficiency of operations.

Flexibility and Adaptability: The span of control is not fixed and can be adjusted based on organizational needs and circumstances. It can vary across different levels and functions within an organization. Changes in technology, work processes, organizational growth, and employee capabilities may require adjustments in the span of control.

Determining the appropriate span of control involves finding the right balance between effective supervision and management efficiency. It is essential to consider the unique characteristics of the organization, the nature of the work, and the capabilities and needs of the employees. By aligning the span of control with the organization's goals and resources, managers can effectively lead their teams and achieve desired outcomes.

FEEDBACK IN CONTROLLING

 

Feedback in controlling refers to the process of providing information and communication regarding performance results and outcomes to individuals or teams within an organization. It is an essential component of the controlling function as it enables managers to assess and evaluate performance against established standards and take appropriate corrective actions. Here are some key points to understand about feedback in controlling:

Performance Evaluation: Feedback provides managers with the necessary information to evaluate and assess the performance of individuals, teams, or the overall organization. It allows them to compare actual performance against the desired standards or targets. By providing feedback, managers can identify areas of strength and areas that require improvement.

Identification of Deviations: Feedback helps in identifying deviations or variances between actual performance and the established standards. It highlights areas where performance is falling short or exceeding expectations. This information enables managers to recognize issues or problems and take corrective actions to bring performance back on track.

Timeliness: Feedback should be provided in a timely manner to be effective. Prompt feedback allows for timely recognition and intervention in case of performance deviations. It enables managers and employees to address issues before they escalate or negatively impact overall performance.

Clarity and Specificity: Feedback should be clear, specific, and relevant to the performance being evaluated. It should provide specific information about what went well and what needs improvement. Vague or general feedback may not be actionable and can lead to confusion or misunderstanding.

Constructive and Balanced: Effective feedback in controlling is constructive and balanced. It focuses not only on areas of improvement but also acknowledges and reinforces areas of strength and achievement. Constructive feedback provides guidance, suggestions, or resources for improvement, helping individuals or teams to enhance their performance.

Two-Way Communication: Feedback should be a two-way communication process. It is important for managers to encourage open and honest dialogue with employees or teams to understand their perspectives, challenges, and ideas for improvement. This helps in fostering a culture of continuous learning, collaboration, and engagement.

Regular Feedback: Feedback should be provided on a regular basis, rather than being limited to occasional or annual evaluations. Regular feedback allows for ongoing monitoring of performance, adjustment of goals, and timely intervention when required. It helps in creating a performance-oriented culture and enables employees to track their progress and make necessary improvements.

Documentation: It is essential to document feedback and related discussions for future reference and as a part of the control system. Documentation provides a record of performance evaluations, feedback provided, and actions taken. It facilitates continuity, accountability, and consistency in the controlling process.

Employee Development: Feedback plays a crucial role in employee development and growth. It helps employees to understand their strengths, weaknesses, and areas for improvement. Constructive feedback provides an opportunity for skill enhancement, training, and development initiatives.

Effective feedback in controlling serves as a communication mechanism that supports the overall control process. It enables managers to monitor and assess performance, identify deviations, provide guidance and support, and facilitate continuous improvement within the organization.

TECHNIQUSES OF CONTROLLING

There are various techniques of controlling that managers can employ to monitor, evaluate, and regulate performance within an organization. These techniques provide a systematic approach to ensure that goals are achieved and deviations from desired outcomes are addressed. Here are some commonly used techniques of controlling:

 

Budgetary Control: Budgetary control involves setting financial targets and monitoring actual financial performance against those targets. It includes preparing budgets for different departments or functions, tracking expenses, analyzing variances, and taking corrective actions as necessary. Budgetary control helps in managing costs, allocating resources effectively, and ensuring financial discipline.

Statistical Analysis: Statistical analysis involves the use of statistical tools and techniques to analyze data and performance indicators. It helps in identifying trends, patterns, and relationships within the data, which can provide insights into performance issues and opportunities for improvement. Statistical techniques such as regression analysis, correlation analysis, and trend analysis can be used to measure and evaluate performance.

Management Information Systems (MIS): MIS involves the use of technology and information systems to collect, store, process, and present data relevant to managerial decision-making and control. MIS provides real-time information on key performance indicators, operational metrics, and financial data. It enables managers to access accurate and timely information to monitor performance, make informed decisions, and take appropriate corrective actions.

Management by Objectives (MBO): MBO is a technique that aligns individual goals with organizational objectives. It involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives for individuals or teams and regularly reviewing progress towards those objectives. MBO facilitates performance appraisal, feedback, and goal attainment, promoting employee motivation and organizational alignment.

Performance Evaluation and Appraisal: Performance evaluation and appraisal involve assessing and measuring individual or team performance against predetermined standards or criteria. This technique includes regular performance reviews, feedback sessions, and formal evaluations. It helps in identifying strengths, weaknesses, areas for improvement, and training and development needs. Performance evaluations can be conducted through self-assessment, 360-degree feedback, or supervisor assessments.

Internal and External Audits: Audits are systematic and independent examinations of an organization's processes, systems, and operations to ensure compliance, identify risks, and assess performance. Internal audits are conducted by internal auditors within the organization, while external audits are performed by independent auditing firms. Audits provide an objective evaluation of controls, financial statements, and adherence to policies and regulations.

Quality Control: Quality control techniques focus on maintaining and improving the quality of products, services, and processes. It involves quality inspections, quality assurance processes, and continuous improvement methodologies such as Six Sigma or Total Quality Management (TQM). Quality control techniques help in identifying and rectifying quality issues, ensuring customer satisfaction, and enhancing overall organizational performance.

Standard Operating Procedures (SOPs): SOPs are documented guidelines and instructions that outline the standard processes, procedures, and best practices to be followed in carrying out specific tasks or operations. SOPs serve as a reference point for employees, ensuring consistency, efficiency, and adherence to established standards. They help in controlling deviations and maintaining uniformity in operations.

Benchmarking: Benchmarking involves comparing an organization's performance, processes, or practices with those of industry leaders or best-in-class organizations. It helps in identifying performance gaps, learning from industry best practices, and setting targets for improvement. Benchmarking provides a basis for performance measurement, goal setting, and continuous improvement initiatives.

Feedback and Communication: Effective communication and feedback channels play a crucial role in controlling. Regular feedback sessions, performance discussions, team meetings, and open communication channels facilitate the exchange of information, address concerns, and provide guidance for improvement. Feedback and communication techniques foster transparency, employee engagement, and accountability.

These techniques of controlling provide managers with tools and methods to monitor,

Multiple Choice Questions:

1. What is the primary purpose of controlling in management?

a. Planning and organizing

b. Monitoring and regulating performance

c. Decision-making and goal-setting

d. Coordinating and communicating

2. Which step of the controlling process involves comparing actual performance with predetermined standards?

a. Establishing standards

b. Measuring performance

c. Analyzing deviations

d. Taking corrective actions

3. What is the nature of controlling?

a. A one-time event

b. A proactive process

c. A backward-looking perspective

d. A purely objective function

4. Which of the following is NOT a limitation of controlling?

a) Incomplete information

b) Cost and time constraints

c) Resistance to control

d) Unrealistic standards

5. What is the primary focus of control by exception?

a) Examining every detail of performance

b) Addressing routine operations

c) Identifying and addressing significant deviations

d) Setting clear thresholds for performance

6. What is the purpose of establishing standards in the controlling process?

a) Measuring performance against benchmarks

b) Analyzing deviations from expectations

c) Providing feedback to employees

d) Guiding decision-making in planning

7. What does the term "span of control" refer to?

a) The number of employees reporting to a manager or supervisor.

b) The level of employee autonomy and responsibility.

c) The complexity of tasks within an organization.

d) The process of providing feedback in controlling.

8. In a wide span of control, a manager:

a) Has a smaller number of direct reports.

b) Supervises a broad range of employees or departments.

c) Requires more supervision, training, and guidance.

d) Promotes decentralization and quick decision-making.

9. Which factor does NOT influence the appropriate span of control?

a) The level of standardization and control required.

b) The level of employee skills and experience.

c) The availability of managerial resources.

d) The type of feedback provided in controlling.

A narrow span of control is associated with a taller organizational structure.

 

True-False Questions:

Controlling involves monitoring and evaluating performance to ensure it aligns with planned objectives. (True/False)

The controlling process includes establishing standards, measuring performance, and taking corrective actions. (True/False)

Feedback is an essential component of controlling as it helps in identifying areas of improvement. (True/False)

Controlling is solely the responsibility of top-level managers. (True/False)

Controlling helps in optimizing resource utilization and minimizing costs. (True/False)

Control by exception allows managers to prioritize their time and resources by focusing on significant deviations from established standards. (True/False)

Controlling primarily focuses on evaluating and managing future performance. (True/False)

The controlling process involves establishing standards, measuring performance, comparing against standards, and taking corrective actions. (True/False)

Feedback in controlling helps managers evaluate performance against established standards. (True/False)

Budgetary control is a technique used to monitor and regulate financial performance. (True/False)

 

YERY SHORT ANSWER QUESTIONS

Q.1. Define control?

Ans. Control is the process of monitoring and regulating activities to ensure they align with predetermined standards and objectives.

Q.2.What is compared what in control?

Ans. In control, actual results are compared with predetermined standards or targets.

Q.3. State the objectives of control?

Ans. The objectives of control are to ensure that organizational goals and targets are achieved, to maintain efficiency and effectiveness in operations, and to detect and correct deviations from planned performance.

Q.4. Explain two important features of a good control system?

Ans. Two important features of a good control system are accuracy and timeliness.

Q.5. How does control simplify the task of supervisor?

Abs. Control simplifies the task of a supervisor by providing a structured framework for monitoring, evaluating, and correcting performance, allowing supervisors to focus on areas that require attention and ensuring efficient management of resources.

Q.6. Explain feedback in controlling?

Ans. Feedback in controlling is the process of providing information about performance results and outcomes to individuals or teams. It helps in evaluating performance, identifying areas of improvement, and making necessary adjustments to achieve desired goals.

Q.7. Explain steps in controlling process?

Ans. The steps in the controlling process are: establishing standards, measuring performance, comparing performance to standards, analyzing deviations, taking corrective actions, evaluating results, and providing feedback for continuous improvement.

Q.8. Explain control helps in decision-making?

Ans. Control helps in decision-making by providing managers with accurate and timely information about the performance of individuals, teams, and processes. This information enables managers to identify deviations from desired outcomes, assess the effectiveness of current strategies, and make informed decisions to address performance issues. Control also helps in evaluating the impact of decision-making by measuring the actual results achieved against the desired standards.

Q.9. Explain control is looking back?

Ans. Control is looking back in the sense that it involves reviewing and evaluating past performance to ensure that goals and standards are being met. It involves comparing actual results with the desired outcomes and identifying any deviations or variances. By analyzing past performance, control provides insights into areas that need improvement and helps in making necessary adjustments to future actions. In this way, control involves a retrospective assessment of performance to inform and guide future decision-making and actions.

Q.10. Explain control is forward looking?

Ans. Control is forward looking in the sense that it focuses on future outcomes and takes proactive measures to ensure that goals are achieved. It involves setting standards and targets for performance and implementing mechanisms to monitor progress and identify any potential issues or deviations in advance. By anticipating and addressing potential problems, control helps in guiding actions and decision-making to achieve desired outcomes in the future. It emphasizes a proactive approach to management and enables organizations to stay on track and make necessary adjustments to ensure success.

Q.11. Control is basis of planning Explain?

Ans. Control is the basis of planning because it provides feedback and information about the actual performance of an organization or individual against the desired goals and targets. This feedback helps in evaluating the effectiveness of the existing plans and making necessary adjustments to ensure that the goals are achieved. Control provides valuable insights into the progress of the plan, identifies deviations, and enables managers to take corrective actions. Without control, planning would lack the necessary feedback loop, making it difficult to monitor progress and make informed decisions to achieve the desired goals.

Q.12. Explain importance of control?

Ans. Control is important because it helps organizations achieve their goals, optimize performance, manage risks, ensure compliance, make informed decisions, and drive continuous improvement.

Q.13. Explain requirements of control?

Ans. The requirements of control include clear objectives and standards, accurate measurement and monitoring, timely feedback, effective communication, competent personnel, appropriate authority and responsibility, adequate resources, and a supportive organizational culture. These requirements ensure that control processes are effective, efficient, and capable of guiding and managing organizational activities.

Q.14. Explain features of control?

Ans. The features of control include:

 

Standards: Control involves setting performance standards or benchmarks.

Measurement: Control requires collecting data to evaluate performance.

Feedback: Control provides feedback on performance results.

Corrective Action: Control facilitates corrective actions to address deviations.

Continuity: Control is an ongoing process.

Flexibility: Control can adapt to changing circumstances.

Integration: Control is closely linked to planning.

Objectivity: Control is impartial and fair in assessing performance.

Accountability: Control establishes responsibility for performance.

Efficiency: Control aims to optimize resource utilization.

Communication: Control involves effective communication channels.

Q.15.What are the limitations of controlling?

Ans. Limitations of controlling include resistance to control, cost and time constraints, difficulty in measuring performance, overemphasis on quantitative measures, incomplete information, inflexibility, potential negative impact on creativity and innovation, misalignment with organizational goals, potential for abuse of power, lack of employee involvement, overemphasis on short-term results, and resistance to change.

Q.16. How controlling facilitate coordination in activities?

Ans. Controlling facilitates coordination by providing feedback and corrective actions based on performance evaluations, ensuring activities align with goals and standards.

Q.17. How control can be exercised on employee’s performance?

Ans. Control can be exercised on employee's performance through various methods such as setting clear performance expectations, establishing performance metrics and goals, providing regular feedback and coaching, conducting performance evaluations, and implementing rewards and consequences based on performance outcomes.

Q.18. Explain how controlling helps in:

 (a)Making efficient use of resources and

(b)Improving employee’s motivation

Ans. (a) Controlling helps in making efficient use of resources by optimizing resource allocation and monitoring resource consumption, minimizing waste, and ensuring resources are utilized effectively.

(b) Controlling improves employee motivation by setting clear performance expectations, providing feedback and recognition, and establishing a sense of accountability, which encourages employees to perform at their best and strive for continuous improvement.

 

SHORT ANSWER QUESTIONS

Q.1. A production incharge was given a standard toy-train he was asked to produce similar other toy-trains what control process would he have followed?

Ans. The production incharge would have followed the control process of production control to ensure the production of similar toy-trains.

Q.2. Explain briefly the various steps in the process of control?

Ans. The control process involves the following steps:

Establishing standards: Setting performance goals or benchmarks.

Measuring performance: Collecting data to assess actual performance.

Comparing performance: Contrasting measured performance with established standards.

Taking corrective actions: Addressing any deviations from the standards.

Monitoring progress: Continuously tracking performance to ensure desired outcomes.

Providing feedback: Offering information and guidance on performance.

Adjusting standards: Modifying benchmarks based on feedback and insights.

These steps form a continuous cycle of monitoring, evaluating, and adjusting to achieve desired results.

Q.3. State any five features of good control system?

Ans. Five features of a good control system are:

Accuracy: Providing precise and reliable information for monitoring and evaluation.

Timeliness: Delivering information in a timely manner to enable prompt action.

Relevance: Focusing on key performance indicators and measures that are relevant to the organization's goals and objectives.

Feedback: Providing feedback and corrective actions to address deviations from standards.

Adaptability: Being flexible and able to adjust to changes in the internal and external environment of the organization.

Q.4. Explain qualities of good control system?

Ans. Qualities of a good control system include accuracy, timeliness, relevance, feedback, and adaptability.

Q.5. Control does not require any process comment?

Ans. Control requires a systematic process to effectively monitor, evaluate, and adjust performance.

Q.6. Planning and control are mutually inter-related and inter-dependent Explain the statement?

Ans. Planning and control are mutually inter-related and inter-dependent because planning establishes the goals, strategies, and actions to be taken, while control ensures that those plans are being executed effectively and achieving the desired outcomes. Control provides feedback and information that helps evaluate the effectiveness of planning and guides future planning decisions. In turn, planning provides the standards and benchmarks against which control measures actual performance, enabling corrective actions to be taken. Both planning and control work together to ensure the successful implementation and achievement of organizational objectives.

Q.7. How does controlling help in achieving objectives and improving employee morale?

Ans. Controlling helps in achieving objectives by monitoring performance, identifying deviations, and taking corrective actions to realign efforts with the desired outcomes. It ensures that activities are on track and aligned with organizational goals, leading to increased efficiency and effectiveness.

Controlling also improves employee morale by providing clear performance expectations, offering feedback and recognition, and creating a sense of accountability When employees receive feedback on their performance and see the results of their efforts, it boosts their motivation and satisfaction, leading to improved morale and engagement in their work.

Q.8. Explain briefly five points relating to the importance of control?

Ans. The importance of control can be summarized in five points:

Goal attainment: Control helps organizations achieve their goals and objectives.

Performance enhancement: Control identifies areas for improvement and encourages continuous growth.

Resource utilization: Control ensures efficient use of resources and identifies wasteful practices.

Informed decision-making: Control provides valuable information for making well-informed decisions.

Adaptability: Control enables organizations to adapt to changes in the business environment and stay competitive.

Q.9.An ideal control technique is the one that checks every bit of performance comment?

Ans. An ideal control technique is not necessarily the one that checks every bit of performance, but rather the one that focuses on monitoring and evaluating key performance indicators (KPIs) and critical aspects of performance. It is not feasible or practical to monitor every single detail of performance in most situations. Instead, an ideal control technique targets the most relevant and significant aspects of performance to ensure that they are in line with established standards and objectives. This allows for effective control while avoiding unnecessary burden and resource allocation on monitoring trivial or less impactful aspects of performance.

Q.10. Define control Explain its importance in management?

Ans. Control is the process of monitoring, evaluating, and adjusting activities to ensure they align with established standards and objectives. It is an important aspect of management as it helps in achieving goals, improving performance, optimizing resources, supporting decision-making, and adapting to changes in the business environment. Control ensures that activities are on track, deviations are identified and corrected, and desired outcomes are achieved, leading to overall effectiveness and success in managing organizational operations.

Q.11. Discuss the advantages of an effective control system?

Ans. The advantages of an effective control system can be summarized as follows:

Goal achievement: An effective control system helps in achieving organizational goals and objectives by ensuring that activities and performance are aligned with the desired outcomes.

Improved performance: It identifies areas for improvement and provides feedback, enabling organizations to enhance performance, productivity, and efficiency.

Resource optimization: A control system allows for the efficient use of resources by monitoring and managing resource allocation, utilization, and cost-effectiveness.

Decision-making support: It provides timely and accurate information for informed decision-making, enabling managers to make strategic choices based on real-time performance data.

Adaptability: An effective control system enables organizations to adapt to changes in the business environment by identifying emerging issues, facilitating adjustments to strategies and plans, and ensuring agility and responsiveness.

Accountability and responsibility: It promotes a sense of accountability among individuals and teams, as performance is monitored and deviations are addressed, fostering a culture of responsibility and ownership.

Detection of problems: A control system helps in early detection of problems, deviations, or potential risks, allowing for timely intervention and corrective actions to mitigate negative consequences.

Overall, an effective control system provides numerous advantages, including goal achievement, improved performance, resource optimization, decision-making support, adaptability, accountability, and problem detection, leading to organizational success and effectiveness.

Q.12. Briefly explain the relationship between planning and control?

Ans. The relationship between planning and control can be summarized as follows:

Planning sets the foundation for control: Planning involves setting goals, defining strategies, and developing action plans. Control, on the other hand, ensures that these plans are being executed effectively and achieving the desired outcomes. Without planning, there would be no basis for control.

Control guides planning: The feedback and information obtained from the control process help in evaluating the effectiveness of the plans. It provides insights into what is working and what needs adjustment, which in turn influences future planning decisions.

Planning provides standards for control: During the planning process, standards and benchmarks are established to guide performance. Control measures actual performance against these standards and helps identify any deviations or variations, enabling corrective actions to be taken.

Control supports effective implementation of plans: Control ensures that the plans are executed as intended by monitoring progress, identifying bottlenecks or issues, and taking corrective actions. It helps in keeping the implementation of plans on track.

Both planning and control are iterative: Planning and control are not one-time activities but are continuous and iterative processes. Planning provides the initial roadmap, and control helps in adjusting and improving the plans based on real-time feedback and evaluation.

In summary, planning and control are closely intertwined and dependent on each other. Planning provides the direction and standards, while control ensures the execution of plans and helps in adjusting and improving them based on real-time feedback and evaluation.

Q.13. After setting the performance standerds the next step in the controlling process is the measurement of performance Explain this step in the process of controlling?

Ans. After setting the performance standards, the next step in the controlling process is the measurement of performance. This step involves collecting data and information to assess the actual performance of individuals, teams, or processes.

Measurement of performance typically involves the following aspects:

Data collection: Gathering relevant data and information related to the performance indicators and standards that have been established. This can include quantitative data such as sales figures, production output, or customer satisfaction ratings, as well as qualitative data such as feedback or observations.

Data analysis: Analyzing the collected data to determine the extent to which performance aligns with the set standards. This involves comparing the actual performance to the desired outcomes or benchmarks.

Performance evaluation: Assessing the strengths and weaknesses of the performance based on the analysis. This step helps identify any deviations or variations from the desired standards.

Performance feedback: Providing feedback to the individuals or teams about their performance, highlighting areas of success and areas that need improvement. Feedback can be given through formal performance evaluations, regular check-ins, or other communication channels.

The measurement of performance is crucial as it provides the foundation for evaluating the effectiveness of the control process. It enables managers to have an objective understanding of how well the organization is performing and to identify any areas that require corrective actions or improvements. By measuring performance, organizations can make informed decisions and take appropriate steps to ensure that performance remains aligned with the established standards and objectives.

Q.14. Explain how management by exception helps in the controlling process?

Ans. Management by exception is an approach that focuses on monitoring and intervening only when deviations or exceptions occur in performance. It helps in the controlling process by:

Efficient use of resources: By focusing attention on exceptional cases or deviations, management by exception allows managers to allocate their time and resources more effectively. They can prioritize their efforts on addressing critical issues that require immediate attention, rather than getting involved in routine or minor matters.

Prompt identification of problems: Management by exception enables managers to quickly identify deviations from established standards or performance targets. By monitoring key performance indicators, they can detect problems or variations that require intervention or corrective actions.

Timely decision-making: With management by exception, managers can make timely decisions when deviations occur. They can allocate resources, adjust plans, or take corrective actions promptly, minimizing the impact of the deviation on overall performance.

Focus on strategic issues: By delegating routine or regular tasks to subordinates, managers can free up time to focus on strategic issues and long-term planning. They can concentrate on setting goals, formulating strategies, and driving organizational growth, knowing that exceptions will be brought to their attention when necessary.

Empowerment and development of subordinates: Management by exception empowers subordinates to take responsibility for routine tasks and day-to-day operations. It encourages them to develop problem-solving skills, take ownership of their work, and contribute to the overall success of the organization.

Overall, management by exception streamlines the controlling process by highlighting exceptions and deviations, allowing for efficient resource allocation, prompt problem identification, timely decision-making, focus on strategic issues, and empowerment of subordinates. It helps managers stay focused on critical matters and ensures that attention is directed where it is most needed for effective control.

Q.15. Explain how critical point control helps in controlling process?

Ans. Critical point control, also known as key point control or milestone control, is an approach that focuses on monitoring and controlling critical or key points in a process or project. It helps in the controlling process in the following ways:

Identifying crucial stages: Critical point control helps in identifying the critical stages or milestones in a process or project where deviations can have a significant impact on the overall outcome. By pinpointing these key points, managers can allocate resources and attention accordingly.

Setting specific standards: Critical point control involves setting specific standards or performance criteria for the critical stages. These standards act as benchmarks against which the actual performance is measured and evaluated.

Monitoring progress: Managers closely monitor the progress of activities and performance at the critical points. This allows them to stay informed about the status and ensure that the process or project is on track.

Early detection of issues: Critical point control facilitates early detection of issues or deviations at the critical stages. By closely monitoring the performance, managers can identify potential problems or risks before they escalate, allowing for timely intervention and corrective actions.

Taking proactive measures: When deviations or issues are detected at critical points, managers can take proactive measures to address them. This may involve making adjustments to plans, reallocating resources, or implementing corrective actions to bring the performance back on track.

Ensuring overall success: By focusing on the critical points, managers can ensure that the most vital stages of the process or project are well-controlled. This increases the chances of overall success as potential risks or deviations are addressed promptly, minimizing their impact on the final outcome.

In summary, critical point control helps in the controlling process by identifying crucial stages, setting specific standards, monitoring progress, early detection of issues, taking proactive measures, and ensuring the overall success of the process or project. It enables managers to allocate resources effectively, address deviations promptly, and achieve desired outcomes.

Q.16. Explain how controlling helps in:

(A) Accomplishing organizational goals and

(B) Judging accuracy of standards

Ans. (A) Controlling helps in accomplishing organizational goals by ensuring that activities and performance are aligned with the desired outcomes. Here's how controlling facilitates goal accomplishment:

Monitoring progress: Controlling involves monitoring the progress of activities and performance against the established goals and objectives. It provides managers with real-time information on how well the organization is progressing towards its goals.

Identifying deviations: Through the control process, managers can identify any deviations or variations from the desired outcomes. By comparing actual performance with the set standards, managers can pinpoint areas where corrective actions are needed to bring the performance back on track.

Taking corrective actions: Controlling enables managers to take timely corrective actions to address deviations and ensure that the organization stays on course towards its goals. By identifying and rectifying issues promptly, controlling helps in minimizing the impact of deviations and maintaining focus on goal achievement.

(B) Controlling helps in judging the accuracy of standards by evaluating whether the established standards are appropriate and effective. Here's how controlling assists in assessing the accuracy of standards:

Performance measurement: Controlling involves measuring actual performance against the set standards. By collecting and analyzing performance data, managers can evaluate the accuracy of the standards and determine whether they are realistic and achievable.

Feedback and evaluation: Through the control process, managers gain insights into the performance levels and whether they align with the established standards. This feedback helps in assessing the accuracy of the standards and identifying any need for adjustment or refinement.

Continuous improvement: Controlling supports a continuous improvement mindset where managers can assess the accuracy of the standards and make necessary adjustments to enhance their effectiveness. By learning from performance evaluations and feedback, managers can refine and update the standards to ensure their accuracy.

In summary, controlling aids in accomplishing organizational goals by monitoring progress, identifying deviations, and taking corrective actions. It also helps in judging the accuracy of standards by measuring performance, providing feedback and evaluation, and promoting continuous improvement.

Q.17.What is PERT?

Ans. PERT stands for Program Evaluation and Review Technique. It is a project management method used to analyze and schedule the tasks and activities involved in completing a project. PERT is particularly useful for projects with a high level of uncertainty and complexity. Here are some key features of PERT:

Network diagram: PERT utilizes a network diagram to represent the sequence of activities and their interdependencies in a project. The network diagram consists of nodes (representing activities) connected by arrows (representing the flow and dependencies between activities).

Time estimation: PERT incorporates probabilistic time estimation for project activities. Instead of using a single-point estimate, PERT uses three time estimates for each activity: optimistic time (O), most likely time (M), and pessimistic time (P). These estimates are used to calculate the expected duration of activities and the overall project.

Critical Path Method (CPM): PERT uses the Critical Path Method to determine the critical path in a project, which is the longest sequence of dependent activities that determines the project's overall duration. The critical path helps identify activities that need to be closely monitored and managed to ensure the project is completed on time.

Float or Slack: PERT calculates the float or slack time for non-critical activities, which represents the amount of time that an activity can be delayed without affecting the project's overall duration. Float allows for flexibility in scheduling and resource allocation.

Project scheduling: PERT helps in creating a project schedule by determining the earliest start and finish times for each activity, as well as the overall project duration. It provides a visual representation of the project timeline and helps in identifying potential bottlenecks or scheduling conflicts.

Project control: PERT facilitates project control by providing a framework for monitoring and tracking progress. It allows project managers to compare the actual project timeline and milestones with the planned schedule, making adjustments and taking corrective actions as needed.

In summary, PERT is a project management technique that utilizes network diagrams, probabilistic time estimation, critical path analysis, and project scheduling to plan, analyze, and control complex projects. It helps in managing uncertainties, optimizing project timelines, and ensuring successful project completion.

Q.18.What is span of control?

Ans. Span of control, also known as span of management or span of supervision, refers to the number of subordinates or employees that a manager directly supervises or manages. It defines the hierarchical structure of an organization by determining the number of employees reporting to a single manager. Here are some key points about span of control:

Width of supervision: Span of control determines the width or breadth of supervision that a manager has. A narrow span of control means that a manager has a smaller number of subordinates to oversee, while a wide span of control indicates a larger number of subordinates under a manager's supervision.

Hierarchical levels: The span of control influences the number of hierarchical levels within an organization. A narrow span of control leads to more hierarchical levels, creating a taller organizational structure. Conversely, a wide span of control results in fewer hierarchical levels, creating a flatter organizational structure.

Effective supervision: The span of control should strike a balance between being too narrow and too wide. If the span is too narrow, managers may become overwhelmed with the workload and struggle to provide effective supervision and support to their subordinates. If the span is too wide, managers may have difficulty maintaining close oversight and individual attention to each subordinate.

Factors influencing span of control: Several factors influence the appropriate span of control, including the complexity of tasks, level of employee expertise, nature of work, coordination requirements, communication channels, and managerial capabilities. Different organizations may have varying spans of control based on these factors.

Span of control and decentralization: Span of control is closely related to the concept of decentralization. A wider span of control is often associated with decentralization, as it empowers employees and allows for more decision-making authority at lower levels of the organization.

Flexibility and adaptability: Organizations may adjust the span of control based on changing circumstances. As organizations grow or restructure, the span of control may be widened or narrowed to optimize efficiency, effectiveness, and coordination.

In summary, span of control refers to the number of subordinates a manager supervises. It influences the hierarchical structure, the effectiveness of supervision, and the overall organizational design. Striking the right balance in the span of control is crucial for optimal management and organizational performance.

LONG ANSWER QUESTIONS

Q.1. A vigilant eye is the only feature of a good control system do you agree with this statement Give suitable argument?

Ans. I do not agree with the statement that a vigilant eye is the only feature of a good control system. While vigilance and monitoring are important aspects of control, there are several other features that contribute to a good control system. Here are some arguments to support this viewpoint:

Clear objectives and standards: A good control system requires clearly defined objectives and standards against which performance can be measured. Without well-defined goals and standards, it would be challenging to determine whether the performance is satisfactory or not.

Feedback and measurement: In addition to vigilance, a good control system involves collecting and analyzing relevant data and feedback. It includes performance measurement, comparing actual results against predetermined standards, and providing timely feedback to employees and managers.

Corrective actions and adjustments: A strong control system includes mechanisms to identify deviations from standards and take corrective actions. It involves analyzing the causes of deviations, identifying root causes, and implementing appropriate corrective measures to bring performance back on track.

Communication and coordination: Effective control requires clear communication channels and coordination among different levels and departments within an organization. It ensures that information flows smoothly, enabling timely decision-making and corrective actions.

Continuous improvement: A good control system promotes a culture of continuous improvement. It involves analyzing performance trends, identifying areas for enhancement, and implementing strategies to enhance efficiency, quality, and productivity.

Flexibility and adaptability: A robust control system should be adaptable to changing circumstances. It should be capable of adjusting goals, standards, and processes as needed to align with evolving business conditions and objectives.

In conclusion, while a vigilant eye is an essential component of a good control system, it is not the sole feature. A comprehensive control system encompasses clear objectives, feedback mechanisms, corrective actions, effective communication, continuous improvement, and flexibility. These features work together to ensure effective control and support the achievement of organizational goals.

Q.2.Deviation is a term used in controlling Explain the light of the statement that if you try to control everything you may end-up by controlling nothing?

Ans. In the context of controlling, deviation refers to any significant deviation or departure from the established standards or expected performance. It indicates a divergence between the actual results and the desired outcomes.

Now, let's analyze the statement "If you try to control everything, you may end up by controlling nothing" in relation to deviations and the controlling process:

When managers attempt to control every single aspect or detail within an organization, they may spread themselves too thin and struggle to effectively address and manage deviations. Here's how the statement aligns with this idea:

Overwhelming scope: Trying to control everything can lead to an overwhelming scope of control. With limited resources and attention, it becomes impractical to closely monitor and control every single activity or process. As a result, managers may not have the capacity to detect and address deviations in a timely manner.

Loss of focus: By attempting to control everything, managers may lose focus on the most critical areas that require attention. It becomes challenging to prioritize and allocate resources effectively. Consequently, deviations may go unnoticed, leading to larger problems down the line.

Inefficient resource allocation: Trying to control everything can result in inefficient resource allocation. Instead of focusing on areas that truly require control and intervention, resources are spread across various activities, diluting their impact and effectiveness. This can hinder the ability to address significant deviations appropriately.

Lack of prioritization: Controlling everything may lead to a lack of prioritization. Not all activities or processes have the same level of importance or impact on organizational goals. By not prioritizing and focusing on the critical aspects, managers may lose sight of what truly matters and may not effectively address deviations that have the most significant consequences.

Micro-management and reduced autonomy: An excessive focus on controlling everything can result in a micro-management approach, stifling creativity, innovation, and employee autonomy. This can have a negative impact on motivation, morale, and overall performance.

In summary, the statement highlights the potential pitfall of trying to control everything. While control is important, it is crucial to focus on key areas, prioritize efforts, and allocate resources wisely. By doing so, managers can effectively address deviations and ensure a more efficient and targeted approach to controlling.

Q.3. Explain briefly the features of good control system?

Ans. A good control system possesses several key features that contribute to its effectiveness in managing organizational performance. Here are some important features of a good control system:

Clear objectives and standards: A good control system starts with clearly defined objectives and standards. It establishes specific and measurable goals that align with the overall organizational strategy. Clear standards are set to evaluate and measure performance against these objectives.

Timely and accurate information: A good control system relies on timely and accurate information. It involves collecting relevant data and feedback on performance, both quantitative and qualitative, to provide an accurate assessment of progress. This information enables managers to make informed decisions and take timely corrective actions.

Monitoring and measurement: A good control system continuously monitors and measures performance against established standards. It involves tracking key performance indicators (KPIs) and metrics to assess progress, identify deviations, and measure the effectiveness of control measures.

Deviation detection and analysis: A good control system is designed to detect and analyze deviations from established standards. It includes mechanisms to identify variations and deviations in performance, analyze their root causes, and understand their impact on organizational objectives. This allows managers to take appropriate corrective actions.

Feedback and communication: A good control system promotes effective feedback and communication channels. It involves providing feedback to individuals and teams regarding their performance, highlighting areas of improvement, and recognizing achievements. It also facilitates open communication between managers and employees, encouraging dialogue and collaboration.

Flexibility and adaptability: A good control system is flexible and adaptable to changing circumstances. It recognizes that organizational goals and standards may need to be adjusted in response to evolving business conditions or new information. It allows for modifications and refinements to ensure continued relevance and effectiveness.

Corrective actions and continuous improvement: A good control system emphasizes the importance of taking corrective actions and promoting continuous improvement. It enables managers to address deviations, implement corrective measures, and learn from past experiences to enhance future performance.

Integration with other management functions: A good control system integrates with other management functions such as planning, organizing, and leading. It aligns control activities with the overall management process to ensure consistency and synergy across all functions.

In summary, a good control system is characterized by clear objectives and standards, timely and accurate information, effective monitoring and measurement, deviation detection and analysis, feedback and communication, flexibility, corrective actions, and integration with other management functions. These features contribute to the effectiveness of the control system in achieving organizational goals and maintaining desired performance levels.

Q.4. Describe briefly the various steps involved in the process of control?

Ans. The process of control involves several sequential steps that help ensure that organizational goals are achieved and performance remains on track. Here is a brief description of the various steps involved in the process of control:

Establishing standards: The first step in the control process is to establish standards. Standards are the benchmarks against which actual performance will be measured. They can be quantitative, such as production targets or financial ratios, or qualitative, such as quality standards or customer satisfaction levels. Standards provide a basis for evaluating performance.

Measuring performance: Once standards are established, the next step is to measure actual performance. This involves collecting data and information related to the activities being monitored. The data can be obtained through various methods, such as observation, reports, feedback, or performance indicators. The purpose is to obtain an accurate assessment of how well the organization is performing.

Comparing performance against standards: After measuring performance, the next step is to compare it against the established standards. This involves analyzing the data collected and assessing the extent to which actual performance deviates from the desired or expected performance. The purpose is to identify any gaps or variations that require attention.

Analyzing deviations: In this step, deviations from the standards are analyzed to understand their causes and implications. The focus is on identifying the root causes of the deviations and determining their impact on organizational objectives. This analysis helps in diagnosing the reasons behind the deviations and provides insights for taking appropriate corrective actions.

Taking corrective actions: Based on the analysis of deviations, the next step is to take corrective actions. Corrective actions aim to close the performance gaps and bring actual performance back in line with the established standards. This may involve implementing changes in processes, reallocating resources, providing additional training or support, or making other necessary adjustments to improve performance.

Evaluating and monitoring: After taking corrective actions, the control process continues by evaluating the effectiveness of the actions taken and monitoring the subsequent performance. This step involves ongoing monitoring and measurement of performance to ensure that the desired improvements are achieved and sustained over time.

Feedback and adjustment: The final step in the control process is to provide feedback and make adjustments as needed. Feedback is provided to individuals or teams regarding their performance, highlighting areas of improvement and recognizing achievements. Adjustments may be made to the standards, processes, or control measures based on the feedback received and the changing needs of the organization.

By following these steps, organizations can effectively monitor, measure, and manage performance to ensure that it aligns with established standards and objectives. This helps in achieving desired outcomes, improving efficiency, and maintaining a high level of performance.

Q.5. Explain the essential features of an effective control?

Ans. An effective control system possesses several essential features that contribute to its ability to monitor and manage organizational performance. Here are the key features of an effective control system:

 

Establishing clear objectives and standards: An effective control system starts with establishing clear and specific objectives. Objectives provide a direction for performance and serve as a basis for setting standards. Standards should be measurable and aligned with organizational goals, enabling the evaluation of performance against predetermined criteria.

Timeliness and relevance: An effective control system emphasizes the importance of timely and relevant information. It ensures that data and feedback are collected and communicated in a timely manner, allowing managers to make informed decisions and take necessary actions promptly. The information should be relevant and aligned with the specific aspects being monitored.

Accurate measurement and evaluation: An effective control system relies on accurate measurement and evaluation of performance. It involves collecting reliable data, using appropriate methods and tools, to assess actual performance against the established standards. This requires the use of valid metrics and techniques that provide an accurate representation of performance.

Deviation detection and analysis: An effective control system includes mechanisms to detect and analyze deviations from the established standards. It involves monitoring performance closely, identifying variations, and analyzing the causes of deviations. This enables managers to understand the root causes and take corrective actions to address the deviations effectively.

Flexibility and adaptability: An effective control system is flexible and adaptable to changing circumstances. It recognizes that standards and objectives may need to be adjusted in response to evolving business conditions or new information. This allows for a dynamic control process that can accommodate changes and ensure continued alignment with organizational goals.

Integration with other management functions: An effective control system integrates with other management functions, such as planning, organizing, and leading. It aligns control activities with the overall management process to ensure consistency and coherence across all functions. This integration helps in reinforcing the control mechanisms throughout the organization.

Communication and feedback: An effective control system promotes effective communication and feedback. It ensures that performance information is communicated to relevant stakeholders in a clear and understandable manner. Feedback is provided to individuals or teams regarding their performance, highlighting areas of improvement and recognizing achievements. This fosters a culture of accountability, learning, and continuous improvement.

Corrective actions and continuous improvement: An effective control system emphasizes the importance of taking corrective actions and promoting continuous improvement. It involves analyzing deviations, identifying the root causes, and implementing appropriate corrective measures to bring performance back on track. It also encourages learning from past experiences and using feedback to enhance future performance.

By incorporating these essential features, organizations can establish a robust and effective control system that enables them to monitor, evaluate, and manage performance effectively, leading to improved productivity, efficiency, and overall success.

Q.6. Comparing the actual performance with the laid down standards finding out the deviation and taking corrective actions is an important process Explain the process?

Ans. The process of comparing actual performance with laid-down standards, identifying deviations, and taking corrective actions is a crucial aspect of the control process. Here's a brief explanation of this process:

Establishing standards: The first step is to set clear and measurable standards that define the desired performance level. These standards serve as a benchmark against which the actual performance will be evaluated.

 

Measuring actual performance: The next step is to measure the actual performance of individuals, teams, or the organization as a whole. This involves collecting relevant data and information through various methods such as observation, reports, feedback, or performance indicators.

Comparing performance with standards: The measured performance is then compared to the established standards. This comparison helps to identify any deviations or variations between the desired performance and the actual performance. Deviations can be positive (exceeding standards) or negative (falling below standards).

Analyzing deviations: After identifying deviations, the next step is to analyze their causes and implications. This involves investigating the factors that contributed to the deviations and understanding their impact on the overall performance. Root cause analysis helps to determine the underlying reasons for the deviations.

Taking corrective actions: Once the deviations are analyzed, appropriate corrective actions are taken. These actions aim to close the performance gaps and bring the actual performance back in line with the established standards. Corrective actions may involve modifying processes, reallocating resources, providing training or coaching, or making any necessary adjustments to improve performance.

Monitoring and reassessment: After implementing corrective actions, the performance is continuously monitored to ensure that the desired improvements are achieved. Ongoing monitoring helps to assess the effectiveness of the corrective measures and track the progress towards meeting the standards. If necessary, further adjustments can be made to the control process or corrective actions.

Feedback and communication: Throughout this process, providing feedback and communication is essential. Feedback is provided to individuals or teams regarding their performance, highlighting areas of improvement and recognizing achievements. Effective communication ensures that everyone involved is aware of the deviations, corrective actions, and progress made towards meeting the standards.

The ultimate goal of this process is to maintain performance within acceptable limits and continuously improve performance over time. By regularly comparing actual performance with standards, analyzing deviations, and taking corrective actions, organizations can ensure that they stay on track towards achieving their goals and objectives.

Q.7. Define management control what are the advantages and limitations of managerial control?

Ans. Management control refers to the process of monitoring and influencing organizational activities to ensure that they are aligned with predetermined goals and objectives. It involves setting standards, measuring performance, comparing it against the standards, identifying deviations, and taking corrective actions.

Advantages of Managerial Control:

Goal achievement: Control helps organizations achieve their goals and objectives by ensuring that activities are carried out in accordance with the predetermined plans.

Performance improvement: Control helps identify areas for improvement by highlighting deviations and taking corrective actions. It promotes efficiency, effectiveness, and continuous improvement.

Resource optimization: Control enables organizations to optimize the use of resources by monitoring their allocation and utilization. It helps identify wasteful practices and encourages resource efficiency.

Decision-making support: Control provides managers with timely and accurate information about performance, allowing them to make informed decisions and take appropriate actions.

Adaptation to change: Control helps organizations adapt to changes in the internal and external environment by monitoring performance and making adjustments as needed.

Limitations of Managerial Control:

Cost and time implications: Implementing control systems can be costly and time-consuming. It requires resources, such as personnel, technology, and data collection processes, which may pose challenges for some organizations.

Resistance to control: Employees may resist control systems if they perceive them as excessive or intrusive. Resistance can hinder the effectiveness of control measures and create a negative work environment.

Lack of flexibility: Control systems can sometimes be rigid, making it challenging to respond quickly to unexpected changes or emerging opportunities. This lack of flexibility can hinder organizational agility.

Overemphasis on quantitative measures: Control systems often rely on quantitative measures, which may overlook qualitative aspects of performance, such as creativity, innovation, and customer satisfaction.

Risk of information distortion: In some cases, individuals or departments may manipulate or distort information to make their performance appear more favorable. This can undermine the accuracy and effectiveness of control systems.

It is important for organizations to strike a balance between the advantages and limitations of managerial control. By designing control systems that align with organizational goals, foster employee engagement, and promote transparency and accountability, organizations can maximize the benefits of control while mitigating its limitations.

Q.8. Define control Discuss its characteristics of a good control system?

Ans. Control refers to the process of monitoring, evaluating, and regulating activities within an organization to ensure that they are in line with predetermined goals and objectives. It involves setting standards, measuring performance, comparing it against the standards, identifying deviations, and taking corrective actions.

Characteristics of a good control system include:

Establishing clear standards: A good control system sets clear and specific standards that define the expected performance. These standards should be measurable, attainable, and aligned with organizational goals.

Timeliness and relevance: A good control system provides timely and relevant information about performance. It ensures that data and feedback are collected and communicated in a timely manner, allowing managers to make informed decisions and take necessary actions promptly.

Accuracy and reliability: A good control system relies on accurate and reliable data. It involves collecting valid and unbiased information to assess actual performance against the established standards. This ensures that the control system provides an accurate representation of the performance.

Flexibility and adaptability: A good control system is flexible and adaptable to changing circumstances. It recognizes that standards and objectives may need to be adjusted in response to evolving business conditions or new information. This allows for a dynamic control process that can accommodate changes and ensure continued alignment with organizational goals.

Focus on exceptions: A good control system focuses on exceptions or significant deviations from the established standards. It identifies and prioritizes areas where performance deviates significantly, allowing managers to allocate their resources and attention effectively to address those deviations.

Integration with other management functions: A good control system integrates with other management functions, such as planning, organizing, and leading. It aligns control activities with the overall management process to ensure consistency and coherence across all functions. This integration helps in reinforcing the control mechanisms throughout the organization.

Communication and feedback: A good control system promotes effective communication and provides feedback to individuals or teams regarding their performance. It ensures that performance information is communicated to relevant stakeholders in a clear and understandable manner. Feedback helps in highlighting areas of improvement and recognizing achievements, fostering a culture of accountability and continuous improvement.

Corrective actions and continuous improvement: A good control system emphasizes the importance of taking corrective actions and promoting continuous improvement. It involves analyzing deviations, identifying the root causes, and implementing appropriate corrective measures to bring performance back on track. It also encourages learning from past experiences and using feedback to enhance future performance.

By incorporating these characteristics, organizations can establish a strong and effective control system that enables them to monitor, evaluate, and manage performance effectively, leading to improved productivity, efficiency, and overall success.

Q.9. Define control discuss its importance how it can be made effective?

Ans. Control refers to the process of monitoring, evaluating, and regulating activities within an organization to ensure that they are in line with predetermined goals and objectives. It involves setting standards, measuring performance, comparing it against the standards, identifying deviations, and taking corrective actions.

Importance of Control:

Goal achievement: Control helps organizations achieve their goals and objectives by ensuring that activities are carried out in accordance with the predetermined plans. It provides a mechanism to track progress and take corrective actions to keep activities on track.

Performance improvement: Control helps identify areas for improvement by highlighting deviations and taking corrective actions. It promotes efficiency, effectiveness, and continuous improvement by addressing performance gaps and inefficiencies.

Resource optimization: Control enables organizations to optimize the use of resources by monitoring their allocation and utilization. It helps identify wasteful practices, inefficiencies, and deviations from planned resource utilization, leading to better resource management.

Decision-making support: Control provides managers with timely and accurate information about performance, allowing them to make informed decisions and take appropriate actions. It helps in identifying trends, patterns, and areas requiring attention, facilitating effective decision-making.

Adaptation to change: Control helps organizations adapt to changes in the internal and external environment by monitoring performance and making adjustments as needed. It enables organizations to respond to emerging challenges, opportunities, and market dynamics, ensuring their continued relevance and competitiveness.

Accountability and transparency: Control promotes accountability within an organization. It establishes clear standards and expectations, providing a basis for evaluating individual and organizational performance. It enhances transparency by providing visibility into activities and results.

To make control effective, organizations can consider the following approaches:

Set clear objectives and standards: Clearly define organizational objectives and set measurable standards that align with those objectives. This provides a basis for performance evaluation.

Select appropriate control mechanisms: Choose control mechanisms that are suitable for the nature of the activities and the level of control required. This may include financial controls, quality controls, performance indicators, or feedback systems.

Establish a feedback loop: Create a feedback loop that enables continuous monitoring and evaluation of performance. Regularly collect and analyze data to compare actual performance against standards.

Foster a culture of accountability: Develop a culture where individuals and teams are held accountable for their performance. Encourage ownership and responsibility for meeting objectives and adhering to standards.

Take timely corrective actions: When deviations are identified, take timely and appropriate corrective actions. This may involve providing additional resources, revising processes, offering training or coaching, or reallocating responsibilities.

Continuously improve the control system: Regularly evaluate and refine the control system to ensure its effectiveness. Adapt the system as organizational needs and circumstances change.

By implementing effective control measures, organizations can monitor performance, identify areas for improvement, and take necessary actions to achieve their goals, improve efficiency, and enhance overall organizational effectiveness.

Q.10.What is meant by control Describe briefly the various steps involved in the process of control?

Ans. Control refers to the process of monitoring, evaluating, and regulating activities within an organization to ensure that they are in line with predetermined goals and objectives. It involves setting standards, measuring performance, comparing it against the standards, identifying deviations, and taking corrective actions.

The various steps involved in the process of control are as follows:

Establishing standards: The first step in the control process is to establish standards. Standards are predetermined criteria or benchmarks against which performance is measured. These standards can be quantitative (such as sales targets or production quotas) or qualitative (such as customer satisfaction ratings or product quality specifications).

Measuring performance: Once the standards are established, the next step is to measure actual performance. This involves collecting data and information related to the activities or processes being controlled. Performance measurement can be done using various methods, such as observation, reports, feedback, or performance indicators.

Comparing performance against standards: After measuring performance, the next step is to compare it against the established standards. This involves analyzing the data collected and assessing whether the actual performance is in line with the desired standards. Deviations or variations from the standards are identified during this step.

Identifying deviations: When a deviation or gap is identified between actual performance and the established standards, it is important to determine the reasons for the deviation. This step involves analyzing the root causes of the deviation, considering factors such as external influences, process inefficiencies, or skill gaps.

Taking corrective actions: Once the deviations are identified and the causes are understood, the next step is to take corrective actions. Corrective actions are measures taken to address the deviations and bring performance back in line with the standards. This can involve making process improvements, providing training or additional resources, reallocating responsibilities, or revising plans.

Monitoring and reviewing: Control is an ongoing process, so it is important to continuously monitor and review the performance. This step involves regularly tracking performance against standards, assessing the effectiveness of corrective actions, and making adjustments as necessary.

Feedback and learning: The final step in the control process is to provide feedback and learning. Feedback is communicated to individuals or teams regarding their performance. It helps in recognizing achievements, providing guidance for improvement, and motivating employees. Learning from the control process allows organizations to refine their standards, enhance performance measurement techniques, and improve future control activities.

By following these steps, organizations can effectively monitor and regulate their activities, ensuring alignment with goals and objectives, identifying areas for improvement, and taking necessary actions to enhance performance and achieve desired outcomes.

Q.11. Planning without control is meaningless and control without planning is a waste Explain?

Ans. The statement "Planning without control is meaningless, and control without planning is a waste" highlights the interdependence and importance of both planning and control in the management process.

Planning is the process of setting goals, determining actions, and developing strategies to achieve those goals. It involves envisioning the desired future state, analyzing the current situation, and creating a roadmap to bridge the gap between the two. Planning provides direction and purpose to the organization and helps in allocating resources effectively.

However, planning alone is not sufficient. Without control, there is no mechanism in place to ensure that the planned activities are executed as intended and that progress is made towards the established goals. Control is the process of monitoring, evaluating, and regulating activities to ensure they are in line with the planned objectives.

Here's why planning without control is meaningless:

Lack of implementation: Without control, plans may remain on paper and not be effectively implemented. Planning without control allows for the possibility of deviation from the planned course of action, resulting in a gap between desired and actual outcomes.

Ineffective resource allocation: Planning involves allocating resources based on anticipated needs. Without control, there is no way to track and assess the actual utilization of resources. This can lead to inefficiencies, such as overallocation or underutilization of resources, which can negatively impact organizational performance.

Lack of adaptability: Planning sets a framework for action, but it cannot foresee all potential changes and challenges that may arise. Without control, there is no mechanism to assess and respond to deviations from the plan or to adjust the plan as needed. This can result in an inability to adapt to changing circumstances, leading to suboptimal outcomes.

On the other hand, control without planning is a waste because:

Lack of direction: Control without planning lacks a clear direction or purpose. It focuses solely on monitoring and regulating activities without a strategic framework. This can result in activities being carried out without a clear understanding of how they contribute to the overall goals of the organization.

Reactive rather than proactive: Control without planning is often reactive in nature. It focuses on identifying and correcting deviations after they occur. Without a planned framework, control measures may be ad-hoc and lack a systematic approach to prevent issues from arising in the first place.

Inefficient use of resources: Control without planning may lead to excessive monitoring and regulation without a clear understanding of priorities. This can result in the misuse of resources, including time and effort spent on controlling activities that are not aligned with organizational goals.

In conclusion, planning and control are complementary processes in the management function. Planning sets the direction and provides a roadmap, while control ensures that the planned activities are executed as intended and deviations are addressed. Both planning and control are essential for effective management, and their integration leads to better outcomes and organizational success.

Q.12. Describe briefly the steps in the process of controlling?

Ans. The process of controlling involves several steps to ensure that organizational activities are in line with the established goals and standards. The following are the steps in the process of controlling:

 

Setting Standards: The first step in the controlling process is to establish standards or benchmarks against which performance can be measured. Standards can be quantitative (such as sales targets, production quotas, or financial ratios) or qualitative (such as quality specifications or customer satisfaction levels). These standards serve as the criteria for evaluating performance.

Measuring Performance: Once the standards are set, the next step is to measure actual performance. This involves collecting relevant data and information about the activities being controlled. Various methods can be used to measure performance, such as financial reports, performance indicators, customer feedback, or employee evaluations.

Comparing Performance against Standards: The measured performance is then compared against the established standards. This step involves analyzing the data collected and assessing whether the actual performance is in line with the desired standards. It helps identify any deviations or variations from the standards.

Identifying Deviations: If there are deviations between actual performance and the established standards, the next step is to identify the reasons for these deviations. This requires a thorough analysis of the factors contributing to the deviations, including internal and external factors, process inefficiencies, or skill gaps. Identifying the root causes of deviations helps in understanding why the performance did not meet the expected standards.

Taking Corrective Actions: Once deviations are identified and the root causes are understood, corrective actions are taken to address the deviations and bring the performance back on track. Corrective actions can include making process improvements, providing additional training or resources, revising plans or objectives, or reallocating responsibilities. The goal is to take appropriate actions that will help close the performance gap and align the activities with the established standards.

Monitoring and Reviewing: Control is an ongoing process, and it is important to continuously monitor and review performance. This involves tracking performance against standards on a regular basis, reassessing the effectiveness of corrective actions, and making adjustments as necessary. Monitoring ensures that performance remains in line with the standards and allows for timely intervention if deviations occur.

Feedback and Learning: The final step in the controlling process is to provide feedback and promote learning. Feedback is provided to individuals or teams regarding their performance, highlighting areas of strength and areas that need improvement. It helps in motivating employees, recognizing achievements, and providing guidance for future performance. Learning from the controlling process allows organizations to refine their standards, improve performance measurement techniques, and enhance overall control activities.

By following these steps, organizations can effectively monitor, evaluate, and regulate their activities, ensuring that they are aligned with goals and objectives. The controlling process helps in identifying performance gaps, taking corrective actions, and ultimately improving organizational effectiveness and achieving desired outcomes.

Q.13. Explain briefly the relationship between controlling and planning?

Ans. Controlling and planning are two essential functions of management that are closely related and interconnected. The relationship between controlling and planning can be summarized as follows:

Interdependence: Planning and controlling are interdependent processes. Planning sets the course of action by determining goals, objectives, and strategies, while controlling ensures that the planned activities are carried out effectively and deviations are corrected. Without effective control, the execution of the plans becomes uncertain, and the desired outcomes may not be achieved.

Feedback loop: Controlling provides valuable feedback to the planning process. Through the control process, managers gather information about the actual performance of activities and compare it with the planned standards. This feedback provides insights into the effectiveness of the planning process itself. If deviations are identified, it may indicate the need to revise or adjust the initial plans.

Alignment: Controlling helps in ensuring that the execution of activities is aligned with the established plans. It enables managers to assess whether the actual performance is in line with the desired outcomes and objectives. If deviations are identified, control measures can be implemented to bring the activities back on track and align them with the original plans.

Adjustments and adaptations: Controlling allows for adjustments and adaptations in the planning process. When deviations are identified, corrective actions can be taken to address the issues and modify the plans as needed. Control provides real-time information and insights that can influence future planning decisions, helping in improving the accuracy and effectiveness of the planning process.

Continuous improvement: The relationship between controlling and planning supports continuous improvement. Control helps in identifying areas of improvement and performance gaps, which can inform the planning process. By analyzing the deviations and taking corrective actions, organizations can learn from their experiences and make adjustments in future planning efforts, leading to better performance and outcomes.

In summary, controlling and planning are closely interconnected and mutually supportive functions of management. Planning provides the framework for action and sets the direction, while controlling ensures that the planned activities are executed effectively and deviations are addressed. The feedback loop between controlling and planning allows for adjustments, adaptations, and continuous improvement, ultimately contributing to the achievement of organizational goals and objectives.

Q.14. State any five points that highlight the importance of controlling?

Ans. The importance of controlling in an organization can be summarized through the following five points:

 

Goal Achievement: Controlling is essential for ensuring that organizational goals and objectives are achieved. It helps in monitoring progress and taking corrective actions to keep activities on track. By measuring actual performance against set standards, controlling enables organizations to assess whether they are moving in the right direction and make necessary adjustments to ensure goal attainment.

Performance Improvement: Controlling plays a crucial role in improving performance. It allows managers to identify areas of underperformance or inefficiencies and take corrective actions to address them. By monitoring performance, identifying deviations, and implementing necessary changes, controlling facilitates continuous improvement in processes, productivity, and overall organizational performance.

Resource Optimization: Effective control helps in optimizing the use of resources within an organization. It enables managers to monitor resource allocation and utilization, ensuring that resources such as finances, materials, and human capital are used efficiently. By identifying wasteful practices, controlling helps in minimizing costs, reducing redundancies, and maximizing the return on investment.

Decision Making Support: Controlling provides valuable information and data that support informed decision-making. It offers insights into the performance of various activities, departments, or projects, helping managers make accurate assessments and decisions. By comparing actual performance with set standards, controlling provides a basis for evaluating the effectiveness of strategies and tactics, enabling managers to make adjustments or take proactive measures as needed.

Adaptation to Change: In today's dynamic business environment, change is inevitable. Controlling helps organizations adapt to changes by providing a mechanism to monitor and evaluate the impact of external factors and internal changes on performance. It helps in identifying deviations from the planned course, analyzing the causes, and taking appropriate corrective actions to align the organization with the new circumstances. Controlling enhances organizational agility and responsiveness to change, ensuring survival and success in a competitive landscape.

In conclusion, controlling is of utmost importance in management. It enables organizations to achieve their goals, improve performance, optimize resources, support decision-making, and adapt to changing environments. By providing feedback, measurement, and corrective actions, controlling ensures that organizations stay on track and continuously strive for excellence.

Q.15. There is a close and reciprocal relationship between planning and controlling Explain this statement?

Ans. The statement that there is a close and reciprocal relationship between planning and controlling highlights the interdependence and interconnectedness of these two functions in the management process. Let's explore this relationship further:

Interdependence: Planning and controlling are interdependent because they rely on each other to ensure organizational success. Planning establishes the goals, objectives, and strategies to be pursued, while controlling monitors and evaluates the actual performance against those plans. Without effective control, the execution of plans becomes uncertain, and the desired outcomes may not be achieved. Similarly, without proper planning, controlling lacks a clear benchmark against which performance can be measured.

Feedback loop: Planning and controlling form a feedback loop that helps organizations improve their performance. Planning sets the initial standards and expectations, while controlling provides feedback on the actual performance. Through controlling, managers gather information about the execution of plans, identify deviations, and take corrective actions. This feedback loop allows for adjustments and improvements in both planning and control processes. The feedback from controlling informs planning by highlighting areas for improvement or necessary changes in future plans.

Alignment: Planning and controlling ensure alignment between organizational activities and goals. Planning defines the desired outcomes and sets the direction for the organization, while controlling ensures that activities are carried out in accordance with those plans. By comparing actual performance against the planned standards, controlling helps identify any deviations and takes corrective actions to bring activities back on track. This alignment between planning and controlling ensures that the organization's efforts are focused and directed towards the desired objectives.

Adaptation and flexibility: The relationship between planning and controlling allows for adaptation and flexibility in the face of changing circumstances. Planning helps organizations anticipate and prepare for potential changes, while controlling provides the means to assess the impact of those changes on performance. If deviations occur, controlling helps in identifying the need for adjustments or modifications to the plans. This adaptability ensures that organizations can respond effectively to internal and external changes, making planning and controlling dynamic and responsive processes.

Continuous improvement: The reciprocal relationship between planning and controlling supports continuous improvement within organizations. The feedback obtained through controlling highlights areas of underperformance or inefficiencies, which can inform the planning process for future improvements. By analyzing deviations, identifying their causes, and taking corrective actions, organizations can enhance their planning processes, set more accurate goals, and improve overall performance over time.

In conclusion, planning and controlling are closely interconnected and mutually supportive functions of management. The feedback loop, alignment, adaptation, and continuous improvement facilitated by this relationship ensure that organizations can effectively pursue their goals, monitor performance, make adjustments when needed, and strive for excellence in their operations.

Q.16. Write about the nature of controlling why is it essential for batter management?

Ans. The nature of controlling in management can be described by its key characteristics and the reasons why it is essential for better management. Here are some points to consider:

Feedback-oriented: Controlling is a feedback-oriented process that involves monitoring, measuring, and evaluating actual performance against planned standards or objectives. It provides valuable feedback on the progress and effectiveness of activities, allowing managers to identify deviations and take corrective actions. This feedback loop helps in improving performance and achieving desired outcomes.

Forward-looking: While controlling involves analyzing past performance, it also focuses on future actions and outcomes. By identifying deviations and taking corrective actions, controlling ensures that future performance aligns with desired goals. It helps in preventing potential issues and making adjustments to stay on track towards achieving organizational objectives.

Proactive in nature: Controlling is a proactive function that aims to prevent problems before they occur or escalate. It involves setting standards, developing control measures, and continuously monitoring performance to detect deviations early on. By addressing issues proactively, controlling helps in avoiding costly mistakes, reducing risks, and maintaining operational efficiency.

Adaptive and flexible: Controlling is adaptive and flexible in response to changes in the internal and external business environment. It allows organizations to adjust their plans and strategies based on real-time feedback and performance evaluation. Controlling helps in identifying the need for adaptations, modifications, or even complete changes in the course of action to align with new circumstances and ensure optimal performance.

Integrated across all levels: Controlling is not limited to top-level management; it is a function that operates at all levels of the organization. It involves monitoring and evaluating performance in various departments, teams, and individuals. Each level of management is responsible for controlling activities within their area of responsibility, ensuring that overall organizational performance is monitored and managed effectively.

Why is controlling essential for better management?

Performance improvement: Controlling plays a crucial role in improving performance by identifying areas of underperformance or inefficiencies. It helps managers take corrective actions, implement necessary changes, and continuously improve processes, productivity, and overall organizational performance.

Goal achievement: Controlling ensures that organizational goals and objectives are achieved. By monitoring progress, comparing actual performance with set standards, and taking corrective actions, controlling keeps activities on track and helps in achieving desired outcomes.

Resource optimization: Effective control helps in optimizing the use of resources such as finances, materials, and human capital. It enables managers to monitor resource allocation and utilization, identify wasteful practices, and ensure efficient resource management, leading to cost savings and improved efficiency.

Decision-making support: Controlling provides valuable information and data that support informed decision-making. By monitoring performance and identifying deviations, controlling helps managers make accurate assessments, identify trends, and make necessary adjustments in strategies and tactics.

Adaptation to change: In a dynamic business environment, organizations need to be adaptable and responsive to change. Controlling helps in identifying deviations from the planned course and facilitates timely adjustments to align with new circumstances. It ensures that organizations can respond effectively to changes, maintain competitiveness, and achieve sustainable success.

In summary, controlling is essential for better management because it helps in improving performance, achieving goals, optimizing resources, supporting decision-making, and adapting to changes. It provides the necessary feedback, monitoring, and corrective measures to ensure that organizational activities are on track and aligned with desired outcomes. Effective controlling enables managers to steer the organization towards success and continuous improvement.

A. One Word to One Sentence Questions

 

Q. 1. What is control?

Ans. It is the process of ascertaining whether the plans are being implemented properly or not.

 

Q. 2. Which function of management ensures accomplishment of work as per plans?

Ans. Controlling.

 

Q. 3. Name any two traditional techniques of controlling.

Ans. (a) Personal Observations (b) Budgetary Control.

 

Q. 4. Give any one point of relationship between planning and controlling.

Ans. The cycle of managerial function starts with planning and controlling is the last function of it.

 

B. Fill in the Blanks

 

1. The dictionary meaning of controlling is to regulate.

2. Controlling and planning are interrelated.

3. Controlling is backward looking, as well as forward looking.

4.  Control needs to be implemented strictly.

D. Multiple Choice Questions

 

1. Which function of management ensures the accomplishment of objectives as per plans?

(a) Co-ordination                                      (b) Controlling

(c) Co-operation                                       (d) None of these.

Ans. (b) Controlling

 

2. Which of the following is a technique of control?

(a) Budgeting                                         (b) Co-ordination

(c) Co-operation                                     (d) Communication.

Ans. (a) Budgeting

 

3. Controlling is exercised:

(a) When something goes wrong          (b) When the management desires

(c) Regularly                                               (d) All the above.

Ans. (c) Regularly

 

4. Budget is a financial statement which spells out policies and programmes about  

(a) Present                                         (b) Future

(c) Both (a) and (b)                          (d) None of these.

Ans. (b) Future

 

Two Marks Questions:

Q. 1. Define co-ordination.

Ans. The process of ensuring uniformity in the activities of various persons and departments in the organisation, is known as 'Co-ordination'. The main objective of doing so is the achievement of the objectives of the organisation.

 

Q. 2. Explain the principle of flexibility.

Ans. According to this principle, there should be flexibility in the process of co-ordination. Due to change in internal and external environment of the organisation, it should be possible to change co-ordination system as well. If this is so, only then the process of co-ordination in the organisation can be changed in accordance with time, needs and circumstances.

 

Q. 3. What is the principle of reciprocal relationship?

 Ans. According to this principle, management must take care of the relations between various employees while trying to establish co-ordination in the organisation. If the relations among the employees are not peaceful and co-operation based, then several problems arise in the achievement of organisational objectives. In order to avoid this situation, principle of reciprocal relationship must be followed.

 

Four Marks Questions:

 

Q. 1. Write any four features of co-ordination.

Ans. 1. Continuous Process: Co-ordination is a process of continuous nature. Manager at every level performs the function of establishing co-ordination with continuity.

2. Universality: The process of co-ordination has the feature of universality. There is need for co-ordination in every organisation at every level. Top level managers, middle level managers and lower level managers, all perform the function of co-ordination at their level.

3. Morale Booster: Co-ordination brings uniformity in the working of all the employees and departments. As a result, employees work with mutual trust and self-motivation.

4. Ensures Unity of Action: The process of co-ordination ensures unity of action in the functioning of the organisation. It is such a process which mobilizes the total power of the organisation for the achievement of organisational objectives.

 

Q. 2. Write any four principles of co-ordination.

Ans. 1. Principle of Early Start: According to this principle, the process of co-ordination must start as early as in the stages of planning and policy formulation. If co-ordination is overlooked while formulating plans and policies, it may have many serious consequences.

2. Principle of Direct Contact: According to this principle, there should be direct contact between the employees and the management for establishing co-ordination in the organisation. In order to ensure this, there should be provision for efficient communication in the organisation.

3. Principle of Reciprocal Relationship: According to this principle, management must take care of the relations between various employees while trying to establish co-ordination in the organisation. If the relations among the employees are not peaceful and co-operation based, then several problems arise in the achievement of organisational objectives.

4. Principle of Flexibility: According to this principle, there should be flexibility in the process of co-ordination. Due to change in internal and external environment of the organisation, it should be possible to change co-ordination system as well.

 

Q. 3. Discuss any four difference between co-ordination and co-operation.

Ans.

Co-ordination	Co-operation
Under it, management ensures uniformity among the activities of various employees and departments to achieve the common objectives. It is a process based upon thinking. Co-ordination in the organisation is created with the efforts of management. The concept of co-ordination is wider than the concept of co-operation.	Under it, individuals voluntarily work together on the basis of collective effort for the achievement of common objectives. It is a voluntary process. Co-operation in the organisation is created by mutual trust and constructive efforts of the employees. The concept of co-operation is narrower than the concept of co-ordination.

 

Q. 4. What is the importance of co-ordination for any organisation?

Ans. 1. Reconciliation Among Objectives: There is difference in organisational and individual objectives. This creates many problems in the working of the organisation. But, through co-ordination, a balance can be achieved among organisational objectives, departmental objectives and individual objectives.

2. Economy and Efficiency: The process of co-ordination promotes economy and efficiency in the working of organisation. This helps to economies a lot of time and resources.

3. Good Personal Relations: Under the process of co-ordination, authority and responsibility relations are determined with certainty in the organisation. Hence, employees work on the basis of mutual co-operation and trust. Consequently, better personal relations are established in the organisation.

4. Unity of Direction: The process of co-ordination brings uniformity in the working of various employees and departments of the organisation. Under this process, the activities of all the employees and all the departments of the organisation get focussed on the achievement of organisational objectives.