CONTROLLING

The process of monitoring

activities to ensure that they are
being accomplished as plan and of
correcting if any significant
deviation.
 IMPORTANCE OF
CONTROLLING
• Is only way to know that goals are being met
or if not, the reason why.

• Helps manager to know whether their goals

and plans were on target and what future
action to take.
• Reduce / Lower the burden on managers by
delegating authority/responsibility and empower
employees.

• Control system provides feed back mechanism.

• Management is on going process and controlling

actions provide the critical link back to planning.
STEPS IN CONTROL PROCESS
Measuring Actual Performance. Determine
actual performance by acquiring information about it.
• How we measure four common sources of
information frequently used are
• Personal observation (MBWA)
• Statistical reports
• Oral reports
• Written reports
What we measure is more critical to the
control process than how we measure
• Wrong criteria.
• Can result in serious dy functional
consequences
• Common criteria
• Employees satisfaction or turnover and
absenteeism rate can be measured
• Budget and amount allocated for their area of
responsibility keeping cost within the budget
• Comprehensive control system needs to
recognize the diversity of activities that
manager do.
•COMPARING
• Determine the degree of variation
between actual performance and the
standard.
• Some variation in performance can be
expected in all activities
• Critical to determine the acceptable
range of variations such that the
acceptable parameter of variance
between actual performance and the
standard.
STEP-3 TAKING MANAGERIAL ACTIONS
• Managers can choose among three courses of
action
• Do nothing
• Can correct actual performance
• If performance variation is unsatisfactory
manager will take corrective action like
• Changing structure
• By training programs
 •Compensation practice
•Changing strategy, Redesigning
jobs
•Immediate corrective action
•Basic corrective action
• Raise the standard
• Lower the standard
 TYPE OF CONTROL (BY TIME)
INPUT ----------------------------- PROCESS ----------------------- OUTPUT
Feed forward control Concurrent control Feedback control
Anticipates problem Corrects problem as they Correct problems after they
happen occur

Feed forward control

A type of control that focuses on preventing
anticipated problem and it takes place in
advance of the actual work activity.
• Concurrent Control
• A type of control that take place while a work
activity is in progress . Management can correct
problem before they become to costly . It is by
direct supervision.
• Feedback Control
• Most popular type of control relies on feedback
Control takes place after a work activity is
completed.
PERFORMANCE
• Performance
• The end result of an activity
• Organizational Performance
• The accumulated end result of all
the organizational work processes
and activities
• Measure of organizational
performance
• Productivity
• The overall output of goods or services
produced/delivered by the inputs needed to
generates that output
• Organizational effectiveness.
• A measure of how appropriate organizational
goals are and how well an organization is
achieving these goals.
• Industry ranking