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Overview of The Lecture
Objective is to Learn
Meaning and definition
Importance of Controlling
Types of control
Meaning and Definition
It is the process that measures current performance and
guidance towards some predetermined goals. The essence of
control lies in checking existing actions against some desired
results determined in the planning process.
Managerial functions commence with planning and end at
controlling. The other functions like organizing, staffing, and
directing are the connecting links between planning and
controlling. Controlling men at work is as old a function as the
human civilization is. It is a fundamental function in every
sphere of life-the family, the academic institutions, the trade,
commerce and industry, the government and even religious
places. Thus control is a never-ending activity just as planning
and motivating activities are.
The managerial function of controlling implies, measurement
of performance against the standard and the correction of
deviations to ensure accomplishment of goals as per plan.
Thus control is the process that measures current performances
and guides them towards some predetermined objectives. In
the words of Koontz and ODonnell, Controlling is the
measuring and correcting of activities of subordinates to ensure
that events conform to plans.
From the above definitions, the following elements or features
of control are evident:
(1) Control is closely linked with planning.
(2) It is a comparison and verification process.
(3) It maintains a balance in activities directed towards a set
of goals.
(4) It corrects imbalance if any.
(5) It is a means to detect deviations from plans policies
programmes, schedules, etc. (6) It is a means to
implement corrective action.
Importance of Controlling
Control is an important function of management as it
smoothen the working of an organisation. Without control, a
manager cannot do his job. It helps him in verifying whether
everything occurs in conformity with the standard set.
Moreover, an effective system of control helps in realising the
following benefits:
1. Basis for future action: Control helps the management to
avoid repetition of past mistakes and provides the basis for
future action.
2. Facilitates decision-making: Control is fundamental to
decision making. It helps in determining the future course of
action whenever there is a deviation between the standard
and the actual performance.
3. Facilitates decentralization: The modern trend of
business organisations towards decentralization calls for a
systematic attempt towards controlling. Without proper
control, decentralization cannot succeed.
4. Facilitates supervision: The existence of a proper control
system should have a positive impact on the behaviour of
the employees. It facilitates supervision.
5. Improves efficiency: Since a good control system
smoothes away wrinkles in the working of an organisation,
the morale of the employees remains high.
6. Facilitates coordination: Control helps in integration of
activities through unity of action. It provides unity of
direction.
Types of Control
1. Open Loop Control
In this just check, that the output is generated or not
2. Closed Loop Control/Feedback Control
Managerial control is essentially the same basic process as is
found in physical, biological and social systems. In electrical
systems such as a voltage regulator, the principle of feedback is
used. In the human body, a number of systems such as the
control of temperature, blood pressure and other conditions
are in accordance with the principle of feedback. So also in social
systems, one finds feedback.
Management control is usually perceived as a feedback system.
The manager receives the feedback information regarding the
actual performance. He can then compare it with the standard
performance. In case the comparison is revealed unsatisfactory,
corrective action is taken. This can be seen more clearly by
looking at the feedback process involved in the management
control system as shown in Figure A
Figure A: Feedback process involved in the management
control system
3. Feed Forward Control
LESSON-30
CONTROLLING, OPEN LOOP,
CLOSED WITH FEEDBACK
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In this type of control the system should tell in advance to take
corrective action i.e. if they do not do something about a
problem at present the problem may occur in future. The
feedback is taken at each and every step.
Notes