CHAPTER 7

MANAGERIAL FUNCTION OF CONTROLLING

An overview of Controlling
 Management control includes all the
devices/mechanisms managers use to ensure that the
behavior of employees is consistent with the
organization’s objectives and strategies.

 Controlling is the process of regulating work activity

in accordance with predetermined plans as to
ensure /assure/ the accomplishment of organizational
objectives, and if necessary take corrective actions.

 It is accomplished by comparing actual performance to

predetermined standards or objectives and then taking
action to correct any deviations from the standard.
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CONT...
Importance of Controlling
 Controlling guides behavior
 helps in guiding and integrating employees’ behavior
towards broader organizational goals.
 Controlling prevents crisis
 If a manager knows what is going on, he can easily solve
any potential problem before it turns into crises.
 Controlling appraises employees’ performance
 proper and effective controlling can provide the manger
with objective information about employees’
performance.
 Allows to cope with uncertainities
 Controlling updates plans
 Controlling allows the manger to compare what was
planned, and update the plans. 2
 THE CONTROLLING PROCESS
 The process of controlling involves the following stages:
1. Determine area to control
2. Establishment of standards
3. Measurement of actual performance
4. Comparing actual performance with established
standards
5. Taking Corrective action (On Time)

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 TYPES OF CONTROLS
1. Preventive/ steering Control / preliminary/ Control
 provides information for a manager the examine and apply
to future activities that are similar to the present one.
 The purpose is to help prevents mistake in the future.

2. Concurrent /yes-no/ screening/ Control

 It is carried out while on activity is taking place.
 Guarantees that the plan will be carried out at the
specified times and under required conditions by making
adjustments.
3. Feed back Control
 Post action controls and focus on the end result of the
process.
 Helps to take corrective actions for future similar
activities/projects/.
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 MAKING CONTROLS EFFECTIVE : CHRCS
 The following are the requirements of effective controls
systems:
 Future oriented
 Multidimensional
 Economically realistic / cost effective
 Accurate and timely
 Acceptable to organization members
 Reliability and validity
 Monitor able
 Organizationally realistic and flexible
 Focus on critical control points
 Easy to understand
 Over and above control
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 “It'snot important that we get
there quickly but that we arrive
safely.”