CONTROLLING IN MANAGEMENT
It
is making something happen the way it was planned to happen. It involves
keeping the organizational activities and functions on right track and aligned
with plans and goals
•
It is the process of comparing
actual performance with standards and taking any necessary corrective action.
–
Appropriate standards
–
Compare ongoing performance against
those standards
–
Take steps to ensure that
corrective actions are taken whenever necessary
Features
•
Control is a positive force
•
Continuous process
•
Control is forward looking
•
Universal
•
Dynamic
•
Goal – oriented
•
Delegation is the key to control
•
Control is based on planning
Establishment
of standards
•
Standards are the targets against
which subsequent performance will be compared.
•
They are criteria of performance
•
They serve as the benchmarks
because they specify acceptable levels of performance
Types
of standards
•
Quantitative standards
–
Time standards
–
Cost standards
–
Productivity standards
–
Revenue standards
•
Qualitative standards
How
to set the standards?
•
Before setting standards, an
executive must study the characteristics of work
•
Executives must consider ordinarily
flexible and generally acceptable levels of good performance in terms of work
characteristics
•
As nature of work differs with
every operation, the characteristics are different and so are the standards.
•
Standards are set, thus, depending
on the characteristics of the task
Measurement
of actual performance
•
The actual performance of the
employee is measured against the standard fixed for his job
•
Measurement can be done directly
through personal observation or indirectly through regular reports – both
written and oral.
•
Personal observation gives first
hand and intimate knowledge of actual operations. But it is subject to personal bias
•
It is tome consuming, conspicuous
and it also develop a sense of insecure feelings among the subordinates
Comparison
of actual performance with standard
•
This step determines the degree of
variation between actual performance and standard performance
•
Determine the acceptable range of
variation.
•
Deviations in excess of this range
become significant and receive managers’ attention.
•
All such deviations may be due to
errors in planning, defective implementation or careless performance of the
operatives.
•
Management by exception
Taking
corrective action
•
Corrective steps are initiated by
managers with a view to rectify the defects in actual performance.
•
A corrective action may involve a
change in methods, rules, procedures etc.
•
Immediate corrective action
corrects something right now but get things back on track. This is temporary in
nature
•
Basic corrective action is
concerned with permanent solution to the problem of serious deviations.
•
Overtime may be permitted
•
Additional equipments and workers
may be assigned
•
A full time director may be
assigned to personally push the project through
•
If these actions fail, the schedule
may have to be revised.
Features
of an Effective Control System
•
Suitable
•
Simple
•
Selective
•
Sound and economical
•
Flexible
•
Forward-looking
•
Reasonable
•
Objective
•
responsibility for failures
•
acceptable
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