Key Points

Controlling is a managerial function that ensures activities in an organization are performed as per the plans. It involves comparing actual performance with standards, finding deviations, and taking corrective actions.

Planning and controlling are inseparable twins of management. Planning sets the goals and standards (prescriptive), while controlling measures performance against those standards and ensures their achievement (evaluative).

Controlling is a primary function of every manager at all levels of management, including top, middle, and lower. It is essential in all types of organizations, not just business enterprises.

Controlling is backward-looking as it analyzes past performance. It is also forward-looking because the corrective action taken aims to improve future performance and helps in formulating future plans.

The first step in the controlling process is to establish standards, which serve as the criteria against which actual performance is measured. Standards can be both quantitative and qualitative.

After setting standards, the actual performance is measured in an objective and reliable manner. The measurement should be in the same units as the standards for easy comparison.

This step involves comparing the actual performance with the established standards. This comparison reveals the deviation between the actual and desired results.

Not all deviations require immediate attention. Managers use Critical Point Control and Management by Exception to identify and prioritize significant deviations that need to be addressed.

This principle states that it is not economical or easy to check every activity. Control should focus on Key Result Areas (KRAs) which are critical for the success of the organization.

This principle suggests that an attempt to control everything results in controlling nothing. Only significant deviations beyond a permissible limit should be brought to the notice of management.

The final step involves taking corrective measures to address deviations and prevent their recurrence. If deviations are within acceptable limits, no action is required; otherwise, it may involve training, process changes, or even revising standards.

Controlling measures progress towards goals, identifies deviations, and initiates corrective action. It helps keep the organization on the right track to achieve its objectives.

Control helps a manager reduce wastage and spoilage of resources. It ensures that resources are used in the most effective and efficient manner in accordance with predetermined standards.

A good control system informs employees about their expected performance standards in advance. This clarity motivates them and helps them to give better performance.

Control systems are less effective when performance standards cannot be defined in numbers. Aspects like employee morale and job satisfaction are difficult to measure quantitatively.

An enterprise cannot control external factors such as government policies, technological changes, and competition, which can affect the organization's performance.

Control is often resisted by employees as they may see it as a restriction on their freedom. For instance, strict monitoring through CCTV cameras might be objected to.

Control is a costly process as it involves significant expenditure, time, and effort. A small enterprise may not be able to afford an expensive or elaborate control system.