Steps, Purpose and Process of Control

Subject: Principles of Management

Overview

This note details the many actions that are conducted throughout the control process. Since controlling is one of a manager's primary responsibilities, it must be carried out appropriately by adopting various actions to increase the effectiveness and efficiency of the control. There may be a variety of issues in an organization, and the managers must carefully address these issues by conducting the right analysis of the issues. To make it easier to deal with issues as they develop, all managers in a company should learn about the numerous elements that contribute to problem formation. The proper choice must be made at the right time.

Managers must examine all the potential problem-causing elements before taking any action. The manager must make the right choice if they are to accomplish their intended purpose. The following are some of the processes that aid in better controlling:

  • Establishment of the Standard: The establishment of standards is the initial stage in the controlling process. The performance standard must be based on real performance. Different metrics are applied to evaluate the performance of various departments. However, it is evaluated in terms of speed, man-hours, and other factors. The performance standard may be divided into tangible and intangible components. Numerical words are a part of tangibles like quantitative standards, monetary standards, temporal standards, etc. Intangibles are of a qualitative nature and cannot be quantified. For instance, employee morale, a company's reputation, effective public relations, etc.

  • Measurement of Actual Performance: Measuring actual performance is the next step in the controlling process once the standard has been established. It is measured how well each person, the business as a whole, and a particular set of employees are actually performing. It must to be stated in terms of anticipated norms. It facilitates managerial processes and gives them purpose.Actual performance ought to be managed by oral or personal observation. Actual performance can be measured on a regular basis, such as annually, monthly, weekly, etc. It should be evaluated based on how it will be utilized in the future and should be performance-oriented.

  • Comparing Performance with Standards: The third step of the controlling process is a comparison of real performance with predetermined standards after measuring actual performance. Finding variances, determining their magnitude, and pinpointing their reasons are all necessary when comparing actual performance. If actual performance falls short of expectations, management must determine the magnitude of the discrepancy. Major or substantial deviations must be notified to a top level of management, but minor or normal deviations do not need to be. Making a thorough analysis to determine the reason of the divergence and then fixing it is another task. Errors in standard setting, environmental change, etc., may be to blame for the variance. Price, governmental regulations, fierce competition, etc. are examples of external factors. Internal factors include a lack of raw materials, outdated technology, poor coordination, etc., so it is important to identify the issue so that appropriate corrective action may be implemented at the appropriate moment.

  • Taking corrective action: The last step in controlling is for the system to take corrective action. One variation is shown by comparing actual performance to the planned performance. If not, corrective action is then performed to eliminate any shortcomings. It ought to be based on the factor generating the variance. In order to change the manner of supervision and direction, enhance motivation, improve selection, and better train employees, among other things, corrective action entails using materials, machines, procedures, policies, etc. Managers must therefore determine the causes of the issues and take the necessary action to resolve them.

Reference

Dr.S Poudyal, Santosh Raj. Principles of management. Bhotahity,Kathmandu.: Asmita book Publishers & Distribution (P)Ltd., 2011
Things to remember
  • Managers need to be aware of elements that will be useful down the road.
  • If there is a weakness in the real work, the necessary steps should be done.
  • The controlling step's objectives are setting a standard, measuring actual performance, comparing actual performance to the standard, and finally taking corrective action.

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