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 Control………. Introduction:
• It is one of the managerial functions that helps
to check the errors and to take the corrective
action. Hence,
• Control in management is setting standards,
measuring actual performance and taking
corrective action.
• According to modern concepts, control is a
foreseeing action whereas earlier concept of
control was used only when errors were
detected.

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 Controlling Defined
• According to Henri Fayol, it is seeing that
everything is being carried out in accordance
with the plan which has been adopted, the
orders which have been given, and the
principles which have been laid down.
• Its object is to point out mistakes in order that
they may be rectified and prevented from
recurring.

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 The Control Process… 4
1. Establishing standards
• A standard is a measuring device: quantitative or
qualitative, that is designed to help monitor the
performance of people, capital goods or
processes.
• Standards for comparison can apply to personnel,
marketing, production, finance, operations, etc
• Standards are applied in controlling for the sake
of comparison between actual and intended
performance.
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 The Control Process…. Cont’d
• 2. Measure performance
• For a given standard a manager should decide how to
measure actual performance and how often to do so.
• Performance measurement can include such data as
units produced, services rendered in money value,
amount of materials used, number of defects noticed,
profits, return on investment quality of output etc...
• Once the means of measurement have been selected,
managers must decide how often they will measure
performance
• the performance can be measured on a daily, weekly,
monthly, quarterly, half yearly or even annual basis.

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 The Control Process…. Cont’d
• 3. Compare performance against Standards
• In many ways, it is the easiest step in the
control process.
• It is comparing measured results with the
established targets or standards previously
set.
• If performance matches the standards,
managers may assume that “everything is
under Control” ………. Other wise,
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 The Control Process…. Cont’d
4. Take Corrective action
• This step is necessary if performance falls
short of standards. (Or) if things are not
consistent with the planned progress.

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 Types of Controls
• There are basically three types of Controls.
These are:
–Feed forward controls
–Concurrent controls
–Feedback (Post action) controls

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 Feed forward controls
• sometimes called preliminary or preventive controls,
attempt to identify and prevent deviations in the
standards before they occur.
• are designed to eliminate the cause of any deviation
that might occur later and are established before the
activity takes place.
• focus on human, material, and financial resources
within the organization.
• These controls are evident in the selection and hiring
of new employees.
– For example, organizations attempt to improve the
likelihood that employees will perform up to standards by
identifying the necessary job skills and by using tests and
other screening devices to hire people with those skills.

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 Concurrent controls
• monitor ongoing employee activity to ensure
consistency with quality standards.
• rely on performance standards, rules, and regulations
for guiding employee tasks and behaviors.
– purpose is to ensure that work activities produce the
desired results.
• As an example, many manufacturing operations
include devices that measure whether the items being
produced meet quality standards.
• Employees monitor the measurements; if they see that
standards are not being met in some area, they make a
correction themselves or let a manager know that a
problem is occurring.

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 Feedback (Post action) controls
• involve reviewing information to determine
whether performance meets established
standards.
• For example, suppose that an organization
establishes a goal of increasing its profit by 12
percent next year. To ensure that this goal is
reached, the organization must monitor its profit
on a monthly basis. After three months, if profit
has increased by 3 percent, management might
assume that plans are going according to
schedule.

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 Feedback (Post action) controls…..
• measure results from completed actions.
• The results of the completed activity are
compared with pre-determined standards and
if there are any deviations, corrective action
can be taken for future activities. E.g. a
restaurant manager may ask you how you
liked the food after your dinner and your
suggestions taken in to account to improve
the meals

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• Controls must be:

e
• Understandable

of Fiv
• Flexible

roup
• Economical
• Objective

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• Acceptable
• Accurate s
Discu

• Reflective
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Requirements of Effective control systems
• Controls must be:
• Understandable: if the control is simple it will be easy
to apply.
• Flexible: it should go inline with changes in plans
• Economical: the cost of control system must be
weighed against the benefit it can return.
• Objective: it should serve the purpose of the plan.
• Acceptable: controls will not work unless the people
want them to.
• Accurate: information must be accurate if it is to be
useful
• Reflective: it should reflect the plan it is designed for

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