FUNDAMENTALS OF MANAGEMENT (MGT162)

TITLE:

CONTROLLING

Prepared by:

2020843856 NUR ZUHAILI BINTI MOHD ZULASRI THM1152CB

Prepared for:

NIK FAKRULHAZRI NIK HASSAN

Date of submission:

24 JUNE 2021
1.0 INTRODUCTION

1.1 DEFINITION OF CONTROLLING

Managers create standards, regulate organizational operations, compare current

performance, and take steps to guarantee that actions are conducted appropriately in order to

adhere to expected organizational standards and goals through controlling. Controlling is used in

an organization to guarantee that desired behaviors are expressed above undesirable behaviors,

with the end goal of achieving the organization's goals (BOGAL, 2020).

These are some examples of organizational control activities:

Quality control (QC) is a technique or series of procedures designed to verify that a

manufactured product or service fulfils a predetermined set of quality criteria or the client's or

customer's expectations (BOGAL, 2020).

Auditing is a systematic check or examination, analysis, and evaluation of a company's

financial statements, records, operations, and administration to assess compliance with

accounting principles, management policies, regulations, and procedures (BOGAL, 2020).

Feedback from the control process may indicate the need for reorganization, further

employee training, clarified communications, increased leadership influence, improved delivery

timeliness, increased quantity and quality of products, and so on (BOGAL, 2020).

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2.0 MAIN TOPICS

In this title, there are several topics to be explained:

 Importance of control

 Process of control

 Types of control

 Characteristics of effective control

 Barriers of control.

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3.0 IMPORTANCE OF CONTROL

The importance of control, for starters, is to assist the management process. Controlling

operations provide the key link back to planning in management, which is an ongoing process.

Managers can use a proper control system to determine whether or not organizational goals are

being reached, as well as why they are or are not being reached (BOGAL, 2020).

Second, deal with uncertainty or change. Organizational plans and goals deal with an

unknown future that is always changing. For example, changing client tastes and preferences,

technological advancements, compliance with new legislation and norms, and so on (BOGAL,

2020).

Third, deal with the issue of complexity. Organizations get increasingly complex as they

grow in size and diversity. Employees in large firms will be more likely to use official

communication channels and advanced technologies. To organize these actions and achieve the

intended results, control is required (BOGAL, 2020).

Furthermore, be aware of human limitations. Employees in organizations can make

mistakes such as making poor decisions, filling incorrect orders, forecasting incorrectly, and so

on. As a result, regulating aids in the detection of errors.

Lastly, assist in the smooth operation of delegation and decentralization. It can offer

information and comments on the performance of employees to whom management have

assigned power with an effective control mechanism.

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4.0 PROCESS OF CONTROL

This is the basic controlling procedure, which entails the following steps.

Step One: Establish standards

Managers must choose a control standard. This must be based on the organization's

goals, which were established throughout the planning phase. The purpose of standards is to

achieve three basic objectives (BOGAL, 2020).

1. Standards give employees with direction on how to perform their jobs and how they will

be evaluated.

2. Standards allow for the early detection of problems and flaws linked to personal

constraints that may prohibit personnel from performing their jobs efficiently.

3. Preventing aim inconsistency, which occurs when severe inconsistencies exist between

organizational members and the organization.

In simple terms, a standard is a set of quantitative and qualitative criteria that managers

use to assess past, present, and future organizational actions (BOGAL, 2020).

Step Two: Measurement of performance

After the standards have been established and determined. It is necessary to ensure that

the standard is satisfied as well as to determine how to meet the requirement. This is to ensure

that the company's total productivity can be improved. As a result, a standard must be measured

using the appropriate metrics, such as a Key Performance Indicator. However, not all standards

can be quantified, therefore managers must rely on their managerial judgement (BOGAL, 2020).

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Step Three: Compare actual performance with standards and identify any deviations

This stage's main objective is to discover any potential deviations. Its purpose is to

determine whether or not the criterion has been satisfied. When standards diverge from the

original plan, greater control is required, or the control standard must be altered. Managers must

compare and review standards over time to ensure that activities are aligned with the

organization's goals. Managers can employ a range of quantitative performance metrics, including

many computer-generated programs, at this point. The discretions of a management, on the other

hand, must be considered in the evaluations of standard of activities (BOGAL, 2020).

Step Four: Take corrective actions

When the standards are not reached, managers must thoroughly assess the problem.

Depending on the context and circumstances, they must take appropriate corrective action.

Managers must determine if the standard measurement is still appropriate and reasonable. They

must take corrective measures if the standards are no longer acceptable for use. This would entail

altering the existing standard. Corrective actions are usually the outcome of a check and balance

between the organization's standards and any deviations that may arise (BOGAL, 2020).

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5.0 TYPES OF CONTROL

5.1 PREVENTIVE CONTROL (PRELIMINARY CONTROL/ PRE-CONTROL/ STEERING

CONTROL)

This control emphasizes preventive and concentrates on input regulations to guarantee

that they satisfy the acceptable standard. Separation of roles, multiple approval systems, policies,

processes, barriers, and other physical security measures are examples of preventative control

in an organization. These preventative controls are put in place to cut down on or eliminate

wasteful losses, as well as the risk of negative effects on organizational and personnel

performance (BOGAL, 2020).

5.2 CONCURRENT CONTROL (DETECTIVE CONTROL/ SCREENING CONTROL/ YES OR

NO CONTROL)

This type of control is used to detect deviations from a regular routine. Antivirus detection

software, for example, detects a dangerous threat on a computer system in an IT firm. Concurrent

control entails regulating ongoing operations and tasks, necessitating the use of a defined

standard. Concurrent control also includes a decision point at which managers must decide

whether to continue working, take appropriate actions, or stop completely (BOGAL, 2020).

5.3 CORRECTIVE CONTROL (POST ACTION CONTROL/ FEEDBACK CONTROL)

When a result on a concurrent control deviates in an organization, corrective control is the

best technique to restrict, minimize, and decrease (not eliminate) the damage. Due to some

unwanted events or conditions, corrective control assists in restoring the capabilities of specific

activities to their earlier state. In many cases, corrective control is used to prevent a problem from

recurring. Internal audit, integrity assessment, personnel assessment, or a compliance

management system are just a few examples (BOGAL, 2020).

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6.0 CHARACTERISTICS OF EFFECTIVE CONTROL

6.1 ACCURACY

Controlling requires a high level of accuracy. This is due to the fact that faulty information

will lead to erroneous conclusions. As a result, in order to ensure dependable and effective

organizational performance, a good control system is required (BOGAL, 2020).

6.2 TIMELINESS

A timely information is required for an effective control system. The performance of a

corporation will be severely harmed by obsolete information. Information should be communicated

in a timely manner so that employees can take remedial action if there are any deviations

(BOGAL, 2020).

6.3 FLEXIBILITY

The control system must be adaptable, allowing for changes in conditions and time. To

take advantage of new opportunities, a solid control system was also required.

6.4 UNDERSTANDABILITY

A control mechanism must be basic enough to be comprehended by anyone. Complicated

instructions and mechanisms can only lead to irritation and unintentional errors. Furthermore, a

good control system must be understood by a diverse workforce in order for them to operate

successfully in order to meet the established criteria (BOGAL, 2020).

6.5 REASONABLE CRITERIA

A good control strategy must be feasible and reasonable. Employees should not be

demotivated to improve their work performance if a regular control process is in place. Employees

will perform illegal things or breach rules only to fulfil the standard if the control is too tight.

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7.0 BARRIERS OF CONTROL

7.1 OVERCONTROL

In the pursuit of many management objectives, management tends to overcontrol activities

required to attain the goal in an organization. While having control is beneficial, having too much

control can lead to problems such as limiting individual job autonomy. To improve workplace

satisfaction, job autonomy is essential. Employees will not be able to shape their own work

environment and perform at their best when a business is overly controlling (BOGAL, 2020).

7.2 INAPPROPRIATE FOCUS

When an organization focuses too much or too narrowly on a single variable, such as the

amount of output to be generated rather than the quality of work generated, this is known as

inappropriate focus. Certainly, the issue may not be a quantifiable quantity like the time spent

creating the result, but rather the employees that are involved in doing the work. When an issue

arises, the focus is inappropriately placed on the output rather than the employee. As a result,

employees may be prone to concentrating all of their efforts on meeting the performance

indicators. As a result, the problem caused by a single employee may recur (BOGAL, 2020).

7.3 REWARDS FOR INEFFICIENCY

In most organizations, this type of barrier arises when the control system rewards

inefficient personnel or activities. In the long run, the control system may be prone to accepting in

capabilities and counter-effort in order to achieve organizational objectives (BOGAL, 2020).

7.4 TOO MUCH ACCOUNTABILITY

It's difficult to assign "weight of accountability" to an individual employee in an increasingly

networked and matrixed firm. However, an overabundance of accountability is possible. This

means that employees are held accountable for a variety of control needs and obligations. As a

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result, in certain cases, employees may only do the bare minimum because they are afraid of

being held accountable for too many jobs. To put it another way, too much accountability will

dissuade employees from going above and beyond their assigned responsibilities (BOGAL,

2020).

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8.0 REFERENCES

Bogal, N. (2020). Supplementary notes for Fundamentals of Management. Alor Gajah: Universiti

Teknologi Mara, Cawangan Melaka.

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