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.