CONTROLLING FUNCTIONS OF MANAGEMENT

The controlling function of management is crucial for ensuring that organizational activities
are on track and aligned with established goals. It involves monitoring performance,
comparing it against predetermined standards, and taking corrective actions when
necessary. Here are the key elements of the controlling function:

1. Establishing Performance Standards: Controlling begins with establishing clear

and specific performance standards against which actual performance can be
measured. These standards may include targets for productivity, quality, efficiency,
profitability, or other relevant metrics. Performance standards provide a benchmark
for evaluating performance and identifying areas needing improvement.
2. Measuring Performance: Once performance standards are established, managers
need to measure actual performance to assess how well organizational activities are
meeting these standards. This may involve collecting data, analyzing reports,
conducting evaluations, and using performance indicators to track progress over
time.
3. Comparing Performance with Standards: After measuring performance, managers
compare it against the established standards to identify any deviations or variances.
This comparison helps managers determine whether performance is meeting
expectations, exceeding targets, or falling short of goals. Variances can highlight
areas of concern that require further investigation and action.
4. Analyzing Deviations: When variances are identified, managers analyze the
underlying causes to understand why performance deviates from the established
standards. This analysis may involve identifying factors such as inadequate
resources, inefficient processes, external factors, or human error contributing to the
deviations.
5. Taking Corrective Action: Based on the analysis of deviations, managers take
corrective action to address any issues and bring performance back in line with the
established standards. Corrective actions may involve making changes to processes,
reallocating resources, providing additional training or support to employees, or
implementing new strategies to improve performance.
6. Feedback and Learning: Controlling provides an opportunity for feedback and
learning within the organization. Managers communicate performance results to
employees, provide feedback on their performance, and encourage continuous
improvement. Lessons learned from the controlling process are used to refine future
plans, strategies, and performance standards.
7. Ensuring Compliance: Controlling also involves ensuring that organizational
activities comply with relevant laws, regulations, policies, and procedures. Managers
monitor compliance with legal and ethical standards, as well as internal policies and
guidelines, to minimize risks and ensure ethical behavior.
8. Continuous Monitoring and Adaptation: Controlling is an ongoing process that
requires continuous monitoring of performance and adaptation to changing
circumstances. Managers regularly review performance metrics, adjust performance
standards as needed, and remain vigilant to emerging issues or opportunities that
may affect organizational performance.

By effectively implementing the controlling function, managers can ensure that

organizational activities are efficient, effective, and aligned with strategic objectives.
Controlling helps organizations stay on course, identify areas for improvement, and achieve
optimal performance in pursuit of their goals.