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Chapter 7 Edited
Chapter 7 Edited
CONTROLLING
In the series of managerial functions, planning is the first function and controlling is the last.
Success in business is very often proportionate to the astuteness of its planning and the skill with
which it is controlled. Plans can be effectively achieved in most organizations only with good
controls, and planning is always pre-requisite for controlling. Planning seeks to set goals and
programs and control seek to secure performance in accordance with plans.
Definition
a) According to Koontze and O'donnell,, "The managerial function of control is the
measurement and correction of the performance of activities of subordinates in order to make
sure that enterprise objectives and the plans devised to attain them are being accomplished.
It's thus the function of every manager, from the chief executive to the Forman."
b) "Controlling is the process by which management sees if what did happen was what was
supposed to happen. If not, necessary adjustments are made." Moore.
An analysis of the foregoing statements regarding control brings out the controlling function of
management.
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iv) Information is the guide to control:
Control exercised by a manager on the basis of the information and reports from those actively
doing the job. Such reports and information may be described as "feed-back" from subordinates.
Feedback enables the manager to determine how far the operations.
7.2 THE CONTROL PROCESS
In controlling process there are three steps,
1. Setting standards
2. Measurement of performance
3. Taking corrective action
1) Setting Standards:
Standards may be tangible or intangible. Greater emphasis should be laid on tangible standards.
The standards in tangible terms may be in terms of output, costs, profit, time persons available
for training etc. intangible terms standards may be for the results to be expected from a training
program, employee morale, advertising campaign, etc.
Organizations create standards to help measure and monitor both productivity and quality efforts.
People and processes are governed by qualitative and quantitative standards. An organization
uses these standards to teach, train, and evaluate organizational performance.
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Controlling can be feed forward, concurrent or feedback controls.
1. Feed forward controls are preventive in nature. They are created to screen out possible
causes of problems. Procedures and training can be preventive as well as remedial.
2. Concurrent controls monitor ongoing operations as they occur in real time, allowing for
instant reactions and the spotting of trends.
3. Feedback controls are after action controls. Inspecting output after an operation has been
performed and soliciting customer feedback are examples of after-action control.
All the three types of controls are important to managers and their organizations. When designed
and used properly, they can prevent, identify, and correct deviations from established standards.
Control may have many different characteristics, but the most important are these:
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7.5 MAKING CONTROL SYSTEM EFFECTIVE
1. Do what they are intended for- prevent deviations, diagnose deviations, treat deviations,
or provide information for future planning, and
2. Do not create organizational problems that result in costs greater than the benefits of the
control devices.