PROCESS OF CONTROLLING

First let’s know what is Control or Controlling?

Controlling is one of the most important functions of management like planning,

organizing, staffing, etc. Its main objective is to ensure that the activities of
an organization are proceeding according to plan. The control process of implementing all
managers consists of several stages. Each of these is equally important and plays a large role in
effective management.
Now, Let’s know, what is Process of Controlling?
The control process of management ensures that every activity in a business is pursuing its goals.
This process sa madaling salita helps managers to evaluate the performance of their organization.
Using this effectively, they can decide whether to change their plans or continue with them as
they are.
So I think you have a little glimpse of what will Im gonna tak about this time.
The Control process consists of the following steps:
Step 1:  Establish standards, goals, and methods for measuring performance
- Setting up the target which needs to be achieved to meet organizational goals.
 The task of setting goals and standards is done in planning we have a learned about it
in the past reporters but it also plays a big role in controlling. This is because the main
purpose of control is to direct the actions of a business towards its goals. If the
members of an organization are clearly aware of their goals, they will devote their full
attention in achieving them.
 It is very important for managers to communicate their organization’s goals,
standards, and objectives as clearly as possible. There should never be ambiguity
(Uncertain word like if I told you I like you it doesn’t mean that I like you as a boy but
I like you as a friend) among employees in this regard (Dapat mas malinaw ang
exaplaination or yung pag kasabe nila if they want to reach the idea or goals that they
want para mas maintinidhan ng employee). If everyone works towards common goals,
an organization can flourish. (Mas Malaki ang chances na mas great or excellent ang
magiging final product ng isang company to reach their goals.)

 The goals that managers must set and act on can be either tangible/specific or
intangible/abstract. Tangible goals are those that are easy to quantify in numerical
terms. (So, as I said earlier dapat mas malinaw and easy to understand yung goals nila
para maintindihan)

Situational Example is when McDonald’s attempts to ensure that a customer is only in the drive
thru line for a specified length of time - this is an established standard.

So, if sinabe ng manager niyo na Yan lang ang time na dapat nandyan lang yung customer, mas
madaling maiintindihan yun ng crew kase mas clear yung command nya.
 For this First step we have 2 Control standard that are categorize as:

Quantitative standards – it is expressed in terms of money. (So naggamit lang sila If

money yung ini expressed sa standard.) AND

Qualitative Standards naman if it includes intangible items. (So nagagamit din it if

yung ini expressed ng standard are about the specific transaction that we take like
travel, insurance, repair, maintenance and etc.

So, with this step, I would like to give the floor if you have any questions?

Step 2: Measure the Performance

- The actual performance of the employee is measured against the target. With the increasing
levels of management, the measurement of performance becomes difficult. 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.
 Once managers know what their goals are, they should measure their actual
performance and compare. This step sa madaling salita it helps them know if their
plans are working as intended.
 After implementing a plan, managers must continuously monitor and evaluate them. If
things are not working properly then they should always be ready to take corrective
measures. To do this, they must keep comparing their actual performance with their
ultimate goals.
So, in this step, this usually involves the collection if data and information. Tinitingnan nila dito
yung actual result nila from the original plan.
Situational Example: McDonald’s can measure the length of time that every single drive thru
customer spends waiting in line.
Pag nang yare ang usto nila sa exact time na dapat nandun lang yung mga customer nila,
nangyayare ang original plan nila if may lumagpas na kahit 2 mins lang sa drive thru customer
ang mangyayare nun is hindi nangyare yung original na plan nila for that time. Kaya need to
measure the performance so that they can redo or find another strategy para mas mag exact yung
original plan nila. Pag hindi kase nangyare yun mawawalan ng customer ang Mcdonald for that
time kase mabagal yung services nila.
This step is measuring the performance. That’s why it involves collecting data on the
organizational Task.
Step 3. Comparison of actual performance with the standard

- 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.

This comparison of the actual performances with the standards will make known the differences
and deviations. This compares the degree of difference between the actual performance and the
standard.
So as I have said earlier, yung sa step 2 tinitingnan nila ang original plan sa actual performance.
If we put this In real case scenarios, McDonald’s sets the standard that they want every drive thru
customer to get through the line and complete their order in 3 minutes or less.
Dapat yung time na 3 mins or less nay un ay ma reach nila yung standard time kase if not the
customer will go away sa Mcdonalds na yun dahil sa tagal ng service.
It is completely necessary to evaluate deviations to determine Bakit hindi na met yung standard
performance. For this step, isa lng ang naiisip kona solution para mag back to track ang business
nila. That is kailangan nila ma reach yung less time ng susunod na cust0mer para ma balik yung
track ng original plan nila.
But managers need to ensure that these deviations are not beyond the acceptable ranges or nasa
bingit ng ikakapahamak ng business.

Step 4:  Take corrective action.

- 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.

 If there are discrepancies between actual performance and goals, managers need to
take corrective action immediately. Timely corrective action can reduce the damage as
well as prevent it from recurring in the future.
 Occasionally, business organizations take corrective actions as default in policies.
However, when it comes to complex problems, it can be difficult to do.
  In such cases, managers first need to determine the amount of the defect and devise a
course of action to measure it. Sometimes, they may have to take extraordinary
measures for unexpected problems.

If actual performance is not meeting the set standard, corrective action needs to take place.

Example: If McDonald’s finds that they are missing the drive thru standard by a minute, they
need to work harder to get back on track.
In real situational naman, if yung problem na why nag consume ng more time ang first customer
is because of the defect of the employee. So dito na nag eenter yung manager, they will redo or
they will repair the conflict so that they will go back on track and begin again to get back on their
original plan.
Managers must make decisions on what needs to happen and what action needs to take place to
improve performance. Managers need to determine why they are not meeting standards to better
help them take the most appropriate action.
It is initiated by the manager who corrects any defects in actual performance. This brings us to
the final step of the control process. If the deviations in the third step are in an unacceptable
range, then the firm needs to improve their performances. And the management must take action
to get better the actual performance of the firm in those problem areas. After the reasons for
deviations have been solve, managers can then build up solutions for issues with meeting the
standards and make changes to processes or behaviors.

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.

Features of Controlling
. It helps in achieving organizational goals.
So, para sa atin what should be our goals? Ano ba dapat ang goal natin for a specific
organizational. So dapat, ito ay very specific, nasusukat o measurable, achievable kase if you
think about something na alam mong its just applicable in your imagaination hindi talaga yun
mangyayre kaya we need a achievable para magawa natin yun ng totoo, and timely yung naisip
mo na paraan ay madali at in that specific time mabilis yung approach niya sa people so that it
can increase more marketable prices. BY setting cear, realistic goals, organizationas have a
clearer path to achhive success an realize its vision.
. Facilitates optimum utilization of resources.
. It evaluates the accuracy of the standard
. It also sets discipline and order.
. Motivates the employees and boosts employee morale.
. Ensures future planning by revising standards.
. Improves the overall performance of an organization.
. It also minimizes errors.

How Controlling Function Helps Managers

Managers at all levels of management Top, Middle & Lower – need to perform controlling function
to keep control over activities in their areas. Therefore, controlling is very much important in
an educational institution, military, hospital, & a club as in any business organization.

Therefore, controlling function should not be misunderstood as the last function of management. It

is a function that brings back the management cycle back to the planning function. Thus, the
controlling function act as a tool that helps in finding out that how actual performance deviates from
standards and also finds the cause of deviations & attempts which are necessary to take corrective
actions based upon the same.

This process helps in the formulation of future plans in light of the problems that were identified &,
thus, helps in better planning in the future periods.  So from the meaning of controlling we
understand it not only completes the management process but also improves planning in the next
cycle.

The controlling function of management generally means organizational

control. That is, its a process by which an organization (through its managers)
influences its sub-units and members in the process of attaining
organizational goals and objectives. 

Because organizations develop standards and goals, controlling necessarily

ensures that individual, group, and organizational performance does not
deviate from standards. 

Controlling should not be viewed as negative - such as manipulative of an

individual’s personality, values, attitudes, or emotions. Rather, managers
simply make certain employee activities are consistent with achieving
organizational goals and objectives. 
Importance of Controlling
After the meaning of control, let us see its importance. Control is an
indispensable function of management without which the controlling
function in an organization cannot be accomplished and the best of
plans which can be executed can go away. A good control system helps
an organization in the following ways:

Planning without controlling is useless.

1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures that further
makes progress towards the organizational goals & brings to light the
deviations, & indicates corrective action. Therefore it helps in guiding
the organizational goals which can be achieved by performing a
controlling function.

The controlling process is implemented to take care of the plans. With the help of
controlling, deviations are immediately detected and corrective action is taken.
Therefore, the difference between the expected results and the actual results is reduced
to the minimum. In this way, controlling is helpful in achieving the goals of the
organization.

Since managers at every level of an organization have to exercise control, the

controlling process leads to decentralization. This, in turn, enables middle and lower
level managers to have some autonomy in making decisions. An organization that
distributes authority at every level always works smoothly and efficiently.

2. Judging Accuracy of Standards

A good control system enables management to verify whether the

standards set are accurate & objective. The efficient control system also
helps in keeping careful and progress check on the changes which help
in taking the major place in the organization & in the environment and
also helps to review & revise the standards in light of such changes.

While performing the function of controlling, a manager compares the actual work
performance with the standards. He tries to find out whether the laid down standards
are not more or less than the general standards. In case of need, they are redefined.

By enabling all managers to possess the autonomy to make decisions, controlling

enhances their managerial abilities. With these skills, managers can further their
organization’s goals by adapting to diverse situations and problems. Furthermore, this
also helps managers grow and develop at an individual level by giving them new
experiences.

3. Making Efficient use of Resources

Another important function of controlling is that in this, each activity is
performed in such manner so an in accordance with predetermined
standards & norms so as to ensure that the resources are used in the
most effective & efficient manner for the further availability of
resources.

Controlling makes it possible to use human and physical resources efficiently. Under
controlling, it is ensured that no employee deliberately delays his work performance. In
the same way, wastage in all the physical resources is checked.

The most important function of controlling is to compare actual performances with

expected results. This, in turn, helps managers understand where they are lacking and
how they can improve their performances. Using this knowledge, managers can use all
available resources optimally and prevent their wastage.

4. Improving Employee Motivation

Another important function is that controlling help in accommodating a
good control system which ensures that each employee knows well in
advance what they expect & what are the standards of performance on
the basis of which they will be appraised. Therefore it helps in
motivating and increasing their potential so to make them & helps them
to give better performance.

Through the medium of controlling, an effort is made to motivate the employees. The
implementation of controlling makes all the employees to work with complete
dedication because they know that their work performance will be evaluated and if the
progress report is satisfactory, they will have their identity established in the
organisation.

In every business organization, managers and employees always have to coordinate

and work with each other collectively. Controlling improves this coordination by
basically demarcating all activities and efforts into fixed boundaries. It brings together
all the resources of an organization and enables its personnel to work together with
unified efforts.

5. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the
organization which helps to minimize dishonest behavior on the part of
the employees. It keeps a close check on the activities of employees and
the company can be able to track and find out the dishonest employees
by using computer monitoring as a part of their control system.

Controlling ensures order and discipline. With its implementation, all the undesirable
activities like theft, corruption, delay in work and uncooperative attitude are checked.

Since all organizations have to depend on humans for functioning, they need to
regulate human behaviour of their employees. Controlling rationalizes this human
behaviour and prevents employees from behaving arbitrarily and badly. It basically
does so by providing for sanctions in case employees do not prescribe to expected
standards of behaviour. For example, managers often take disciplinary action against
employees who take unauthorized leaves.

6. Facilitating Coordination in Action

The last important function of controlling is that each department &
employee is governed by such pre-determined standards and goals
which are well versed and coordinated with one another. This ensures
that overall organizational objectives are accomplished in an overall
manner.

Coordination among all the departments of the organisation is necessary in order to

achieve the organisational objectives successfully. All the departments of the
organisation are interdependent. For example, the supply of orders by the sales
department depends on the production of goods by the production department.

Through the medium of controlling an effort is made to find out whether the production
is being carried out in accordance with the orders received. If not, the causes of
deviation are found out and corrective action is initiated and hence, coordination
between both the departments is established.

A good control system can always greatly boost an organization’s efficiency and
effectiveness. It generally does this by identifying deficiencies in an organization’s
functioning and suggesting improvement measures. Managers use control to achieve
their targets in this manner.

Operational control

  When performance does not meet standards, managers enforce corrective actions,
which may include training, discipline, motivation, or termination.

   Example, if sales people are not trained on time, sales revenue may fall.

Operational control in strategic management

  Operational control systems are designed to ensure that day-to-day actions are consistent
with established plans and objectives. It focuses on events in a recent period. Operational control
systems are derived from the requirements of the management control system.

 How controlling helps in the accomplishment of goals?

Ans. Controlling can be defined as that function of management which

helps to seek planned results from the subordinates, managers and at all
levels of an organization. The controlling function helps in measuring
the progress towards the organizational goals & brings any deviations,
& indicates corrective action. Thus, an overall sense, the controlling
function helps and guides the organizational goals for achieving long-
term goals in future.