PHILIPPINE CHRISTIAN UNIVERSITY

Sampaloc 3, Dasmarinas Cavite

CONTROLLING

Learning Objectives:

At the end of this lesson, the students are expected to :

1. define the meaning of controlling

2. describe the purpose and importance of controlling
3. identify the steps in the control process.

Lesson Presentation:

What is Controlling ?

Controlling is an important function of management which all the

managers are required to perform. In order to contribute towards achievement of
organizational objectives, a manager is required to exercise effective control over the
activities of his subordinates .

Controlling can be defined as managerial function to ensure that activities in an

organization are performed according to the plans.
al performance with the predetermined standards, finding out deviation
and taking corrective measures to ensure that the activities are performed according to
plans.

Importance of Controlling

1. Accomplishing Organizational Goals

- controlling helps in comparing the actual performance with the

predetermined standards, finding out deviation and taking corrective measures to
ensure that the activities are performed according to plans.
- it help the organization achieve its goal in the most efficient and effective
manner possible.

2. Making efficient use of resources

- controlling checks the working of employees at each and every stage

of operations.It ensures effective and efficient use of all resources in an organization
with minimum wastage or spoilage.
3. Improving employee Motivation

- employees know the standard against which their performance will be

judged,

4. Ensuring order an discipline

- controlling ensures a close check on the activities of the employees..

It helps in reducing the dishonest behavior of the employees and in creating order an
discipline in an organization.

TYPES OF CONTROL

1. Feedforward Control

- when management anticipates problems and prevents their occurrence, the

type of control meaure undertaken.

2. Concurrent control

when operations are already ongoing and measure to detect variances

are made.

3_-. Feedback control

- when information is gathered about a completed activity for purposes of

evaluating and deriving required steps for improving the activity.

COMPONENTS of ORGANIZATIONAL

To effectively control activities, organizations adapt control systems

consisting of the following components:

1. Strategic Plan - provides the basic control mechanism for the organization .

2. Long Range Financial Plan - the planning horizon differs from company to
company. Most firms will be satisfied with a one-year plan.

3. The Operating Budget - this indicates the expenditures , revenues, or profits

planned for some future period regarding operations. The figures appearing in the
budget are used as standard requirements for performance.
4. Performance Appraisal – this measures employee performance. As such it provides
employees with a guide on how they could do their jobs better in the future.
Performance appraisals also function as effective checks on new policies and
programs.

5. Statistical Reports - theses are those that contain data on various developments
within the firm.

8. Policies and Procedures - Policies refer to the framework within which the
objectives of the organization must be pursued. Procedures - is a plan that describes
the exact series of actions or steps to be taken in a given situation.

SUMMARY:

Controlling is one of the main functions of management . It comes after planning,

organizing and directing. Controlling is aimed at determining if objectives were realized
and by providing means for achieving unrealized goals. Controlling is important
because it complements thes other management functions.