CHAPTER 9: CONTROLLING

Steps in the Control Process

by: ANGELIKA LEI P. GARAO

RED GROUP
The control process consists of four steps,
namely:
1. establishing performance objectives and
standards
2. measuring actual performance
3. comparing actual performance to
objectives and standards, and
4. taking necessary action based on the
result of the comparisons.
 ESTABLISH MEASURE ACTUAL
PERFORMANCE PERFORMANCE
OBJECTIVES AND
STANDARD
do nothing

DOES ACTUAL
PERFORMANCE
MATCH THE
Yes
STANDARD?

No

TAKE
CORRECTIVE
ACTION
1.Establishing Performance Objectives and Standards

In controlling, what has to be achieved must first be determined.

Examples of such objectives and standard are as follows:
1. Sales targets – which are expressed in quantity or monetary
terms
2. Production targets – which are expressed in quantity or
quality
3. Worker attendance – which are expressed in term of rate of
absences
4. Safety record – which is expressed in number of accidents for
given periods
5. Supplies used – which are expressed in quantity or monetary
terms for given period
 Once objectives and standards are
establish, the measurement of performance will
be facilitated. Standards differ among various
organizations.
In construction firms, project completion
dates are useful standards. In chemical
manufacturing firms, certain pollution measures
form the basis for standard requirements.
After the performance objectives and
standards are established, the methods for
measuring performance must be designed. Every
standard established must be provided with its
own method for measurement.