LESSON ORGANIZATION AND MANAGEMENT WEEK 2

DEFINITION OF CONTROLLING

Controlling can be defined as a function of making sure that actions of the employees of an organization
are directed towards the attainment of a common goal and the work is being performed as planned by
the management.

What is controlling?

Role of the management of an organization is to make sure that the goals of the organization are
achieved as planned and on time. Out of the many functions of management, control is one of the most
important functions of the organization.

Controlling means giving instructions to employees and making sure that the instructions are being
followed as desired by the management.

Controlling means the management of the organization is responsible for deciding predetermined
standards and making sure that performance of the employees match with the standards set by the
management and in case if the performance of employees does not match with standards then taking
required corrective measures.

FEATURES OF CONTROLLING IN MANAGEMENT

1) Controlling is a dynamic process

Controlling is a dynamic process. A manager is required to take a different course of actions when an
employee fails to match the standards of performance. A manager should have the skills to decide how
to react to a certain situation.

For example, if an employee is absent frequently, then the manger first should talk with him and ask for
the reason of his absenteeism and try to do something about the problem, and if the problem persists
then, he should take some strict action.

2) Controlling is an end function

Controlling is an end function because it comes into action once the task is completed. The performance
standards are decided before the work is assigned to the employees and once the work is complete the
performance of employees is compared with the standard performance, and if the performance of the
employees is same as that of the standard performance then no actions are required to be taken but in
case the performance doesn’t match then the manager is required to take the corrective actions.

3) Planning and controlling go hand in hand

It is not wrong to say that planning and controlling works together. A manager is required to plan so that
he can control the actions of employees in order to achieve the desired outcome
Controlling is one of the most basic functions of management, like planning, organizing, staffing, etc.
Controlling is an important function, and without controlling management can’t ensure the desired
results.

3) Planning and controlling go hand in hand

It is not wrong to say that planning and controlling works together. A manager is required to plan so that
he can control the actions of employees in order to achieve the desired outcome.

For example, if a sales manager makes a target to make the sales of 5 million in one quarter with five
salespersons working in his team, then he will give the target of 1 million to every salesperson and will
control their actions to achieve the desired results.

Now you understand that without planning, controlling is meaningless, and without controlling planning
can’t go as desired.

3) Controlling is a pervasive function

Controlling is a pervasive function because it can’t be escaped at any level of the management. All
management is required to control at all levels.

For example, a top-level manager will control the actions of a middle-level manager and supervise the
performance of the manager and similarly, a low-level manager is answerable to a middle-level
manager.

In this way, the controlling is done at all levels. However, there might be a difference in the methods of
control, and different corrective actions are taken when the performance of the employee is not as
desired.

4) Controlling is looking forward

A manager can control the performance of an employee by controlling the past actions. A manager
keeps track of the performance of the employee, so that follow up can be made when the time comes to
compare the performance.

PROCESS OF CONTROLLING IN MANAGEMENT

The process of controlling in management consists of four steps. All of these steps are necessary to be
followed in order to control effectively.
1) Formation of standards

The first step of the controlling process is the formation of standards. The manager first prepares a
report stating the standards expected from the project given to employees.

The standards are not decided by randomly picking a figure, but it is decided on the basis of the past
performance of employees and performance of last season and the condition of the market. Before
revealing the expected standards with employees and giving them the target, the standards are
approved from the senior management.

After getting the approval of the management, these standards are discussed with the team members,
and the target is given to each team member. A preformed standard gives a common goal to employees
to work towards.

2) Measurement of actual performance

Once the task is completed, it is the job of the manager to measure the performance of the employees.
The manager will analyze the performance of each employee and ask them to submit their report of
work.

3) Comparison of actual performance with the standard performance

After the measurement of the actual report, a comparison is made between the actual performance and
the pre-decided standard performance and the difference is calculated between both the performances
and a report is generated after the analysis of the performance of all employees.

4) Taking corrective actions if required

After comparing the standard performance with the actual performance of employees. The difference is
calculated.

Then the performance of each employee is analyzed, and the difference between the target given to
them and the percentage of target achieved by them is observed, and the required actions are taken as
per the policy of the company and the past performance of the employee.

For example, no actions would be taken against the employee whose performance has been good in the
past few months. Taking corrective actions is important; otherwise, employees would start taking their
job lightly, and there are chances that you might lose business in the future.

IMPORTANCE OF CONTROLLING

1) Controlling Motivates Employees

Controlling doesn’t mean just giving orders to the employees. It means that the manager guides his
employees throughout the process and provide help to them where they need.
He also makes sure that each employee is doing his work with proper dedication and also scolds them if
they are not putting 100% efforts.

In addition to this, when a target is given to employees, it gives them a goal to work. The target
motivates them to go to work and work hard to achieve the target. A motivated employee ends up
performing much more than his actual capacity.

2) Controlling Makes the efficient use of resources

Controlling in management helps in the proper use of resources available in the organization.

Under controlled environment, employees make the proper use of resources and are careful while using
them. With control, management can make sure that the employees get maximum output out of the
available resources to them.

3) Controlling creates discipline in the organization

Another importance of controlling in management is the discipline in the organization. Discipline is

necessary to attain the goal in the desired time and with available resources. People tend to become
careless if their actions are not controlled, and if they know that there is nobody to questions them.

By controlling management not only control the actions of employees but also makes sure that they do
that maximum output can be obtained.

4) Controlling ensures coordination of action

In a large organization, there are hundreds of employees who work together. Different work is going on
different departments at the same time. If there is no coordination between the employees of the
organization, then they might end up losing a lot of resources which may cause loss to the organization
then causing profit.

Therefore, it is the role of the management to coordinate the actions of employees who work in a
different department, and there is little communication between them.

Management acts as a common thread between them and ensures that the actions of all the employees
working in different departments are directed towards one common direction that is the direction
towards achieving the common goal of the organization.

5) Controlling helps in deciding the right judgment about the standards

Standards cannot be decided over a hunch. It is management that makes sure that standards are
decided with proper analyses of the performance of past projects, the market condition, the available
resources, and the capacity of the organization.
This can all be possible if control the work in the organization, and with their expertise and skills can
make the right judgment of standards.

6. Controlling aids in the accomplishment of organizational goals

And last but not least important of controlling in management is the accomplishment of a goal. The
owner of the business or top management has put their money in the business with the intentions to
make more money out of it. Therefore, their primary goal in every project is to make more profit, and a
manager at a low level is answerable for the performance of his team’s performance.

Therefore, a manager always controls the actions of people working on his team by making the effective
use of the process of controlling.