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L 13. CONTROLLING – PROCESS AND TYPES

Control as an element of management process involves analyzing whether actions are

being taken as planned and taking corrective actions to make these to conform to planning.
The word control is also preceded by an adjective to designate a control problem, such as,
quality control, inventory control, production control, or even administrative control. In
fact, it is administrative control which constitutes the most comprehensive control concept.
All other types of control may be subsumed under it.

Features:

 Control is forward looking because one can control future happenings and not the past.

 Control is both an executive process and a result. As an executive process, each

manager has to perform control function in the organisation. According to the level of a
manager in the organisation, the nature, scope, and limit of his control function may
be different as compared to a manager at other level.

 Control is a continuous process.

 A control system is a coordinated-integrated system.

Control Process

The control process of management ensures that every activity of a business is furthering its goals.
This process basically helps managers in evaluating their organization’s performance. By using it
effectively, they can decide whether to change their plans or continue with them as they are.

The control process consists of the following basic elements and steps:

4 Steps of Control Process are;

1. Establishing standards and methods for measuring performance.

2. Measuring performance.

3. Determining whether performance matches the standard.

4. Taking corrective action.

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These steps are described below;

1. Establishing Standards and Methods for Measuring Performance

Standards are, by definition, simply the criteria of performance. They are the selected
points in an entire planning program at which performance is measured so that managers can
receive signals about how things are going and thus do not have to watch every step in the
execution of plans.

Standard elements form precisely worded, measurable objectives and are especially
important for control.

In an industrial enterprise, standards could include sales and production targets, work
attendance goals, safety records, etc.

In service industries, on the other hand, standards might include several time customers
have to wait in the queue at a bank or the number of new clients attracted by a revamped
advertising campaign.

2. Measuring the Performance

The measurement of performance against standards should be done on a forward-looking

basis so that deviations may be detected in advance of their occurrence and avoided by
appropriate actions.

Several methods are used for measuring the performance of the organization.

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If standards are appropriately drawn and if means are available for determining exactly
what subordinates are doing, appraisal of actual or expected performance is fairly easy.

But there are many activities for which it is difficult to develop accurate standards, and
there are many activities that are hard to measure.

It may be quite simple, for example, to establish labor-hour standards for the production
of a mass-produced item and it may be equally simple to measure performance against these
standards, but in the less technical kinds of work.

For example, controlling the work of the industrial relations manager is not easy because
definite standards cannot be easily developed.

The superior of this type of manager often rely on vague standards, such as the attitude of
labor unions, the enthusiasm, and loyalty of subordinates, the index of labor turnover and/or
industrial disputes, etc. In such cases, the superior’s measurements are often equally vague.

3. Determining whether Performance Matches the Standard

Determining whether performance matches the standard is an easy but important step in
the control process. It involves comparing the measured results with the standards already set.

If performance matches the standard, managers may assume that “everything is under
control”. In such a case the managers do not have to intervene in the organization’s operations.

4. Taking Corrective Action

This step becomes essential if performance falls short of standards and the analysis
indicates that corrective action is required. The corrective action could involve a change in one
or more activities of the organization’s operations.

For example, the branch manager of a bank might discover that more counter clerks are
needed to meet the five-minute customer-waiting standard set earlier.

Control can also reveal inappropriate standards and in that case, the corrective action
could involve a change in the original standards rather than a change in performance.

It needs to be mentioned that, unless managers see the control process through to its
conclusion, they are merely monitoring performance rather than exercising control.
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The emphasis should always be on devising constructive ways to bring performance up to

a standard rather than merely identifying a past failure.

TYPES OF CONTROL

Control may be of different types and these can be classified on the basis of elements to be
controlled and stage at which control can be exercised in controlling the work outcome.

Based on elements to be controlled, control can be divided into two forms:

 Strategic and
 Operational control.
Based on the stages, control can be in three forms:
 Feedback control (post action control based on feedback from the completed action),
 Feed forward control (control of inputs that are required in an action) and
 Concurrent or real-time or steering control (control at different stages of action
process).

Strategic and Operational Control

Strategic control is the process of taking into accounts the changing planning prem -
ises, both external and internal to the organisation, on which the strategy is based,
continuously evaluating the strategy as it is being implemented, and taking correc tive actions
to adjust the strategy to the new requirements.

Operational control is concerned with action or performance and is aimed at

evaluating the performance of the organisation as a whole or its different compo nents such
as strategic business units, divisions, and departments.
Factors Strategic Control Operational Control
Aim Proactive, continuous questioning of Allocation and use of
the basic direction of the strategy organisational resources
Main Concern Steering the future direction of the Action Control
organisation
Focus External Environment Internal Environment
Time horizon Long - term Short – term
Exercise of Exclusively by top management, may Mainly by executive or middle
control be through lower-level support management on the direction of
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top management
Main Techniques Environmental Scanning, Information Budgets, Schedules and MBO
gathering, questioning and review
Stages of Control

Feed forward Control: Feed forward control involves evaluation of inputs taking corrective action
before a particular sequence of operation is completed. Thus, it attempts to remove the limitations of
time lag in taking corrective action, Feed forward control monitors inputs into a process to
determine whether the inputs are as planned. If inputs are not as planned, corrective action is
taken to adjust inputs according to the plan so that the desired results are achieved within
planned inputs.

Concurrent Control/real time control/steering control: Concurrent control is exercised during the
operation of a programme. It provides measures for taking corrective action or making
adjustments while the programme is still in operation and before any major damage is done. In the
organisational context, many control activities are based on this type of control, for example, quality
control during the operation, or safety check in a factory. Here, the focus is on the process itself.
Data provided by this control system is used to adjust the process.

Feedback Control: Feedback control is based on the measurement of the results of an action. Based on
this measurement, if any deviation is found between performance standards and actual
performance, the corrective action is undertaken. The control aims at future action of the similar
nature so that there is conformity between standards and actuals. In the business organisations, top
management control is mostly based on feedback. To make feedback control effective, it is essential
that corrective action is taken as soon as possible.