Principles of Management

Controlling
• The controlling function can be defined as a managerial
process evaluating actual performance in the
organization as per the planned performance.
• This function confirms that organizational activities are
performed to achieve goals and objectives according to
the plans.
• And if there any issues with the current progress, this
will help to take corrective actions.
• Therefore the controlling can be identified as a primary
goal-oriented function in the management process.
• After the planning, this is the most crucial
function in management.
• Every manager in an organization should be
engaged with this control function; they
perform the progress as planned.
• Therefore, controlling is an essential function
for organized living as well as a living
organization.
• When considering the importance of
controlling, it plays a significant role in
achieving organizational goals. Without this
function, any organization cannot be
committed its goals and objectives according
to the plans.
• A good control function helps an entity in
many ways, such as,
• Help managers to identify irregularities such as cost
overrun, employee turnover, and product defects.
• Easy to find better opportunities
• Manage complex situations in the organization as well
as its environment.
• Organizational resources are utilized with effectiveness
and efficiently
• Motivates employees and their productivity
• Lower-level managers can involve with decision-
making.
Advantages of controlling
• The organization will able to reach its goals and
objectives easily
• The quality of the products increases
• Employee motivation increases, and it will be led to an
increase in productivity.
• Easy to find mistakes/errors in the planning function
and manage risks
• Optimum utilization of organizational resources
• Every manager can make decisions at the right time in
the right ways.
Process of controlling
• The process of controlling consists of four
main steps.
Establishing standards
• As the first step in the control process, this involves setting
up future targets which need to be accomplished to reach
expected performance. There are different standards such
as time standards, cost standards, income standards,
market standards, and personal quantitative standards.
Measuring actual performance
• This step can be referred to as a task of computing and
evaluate the actual performance. This is a continuous task,
and it involves collecting information that represents the
actual performance. The evaluation of actual performance
is compared with the expected performance/standards.
Comparing actual performance with standards
• This is a task of comparing actual performance
against standards. Because of this comparing, the
management will understand the difference
between actual performance and the expected
performance.
Taking corrective actions
• After comparing the actual performance with
established plans, the comparison results can be
equal with the standards, higher or lower.
Levels of controlling
• In management, there are mainly three different
levels of control. It includes strategic control,
tactical control, and operational control.
Strategic control
• Strategic control is a process used by companies
to control the implementation and development
of strategic plans. Top-level management in an
organization involves this strategic control
process and is mainly focused on achieving long-
term future goals.
Tactical control
• While strategic control focuses on achieving the long-
term goal, tactical control involves tactical plans to
reach that goal. Middle managers in the company
mainly involve with tactical control and implement
tactical plans at every departmental level.
Operational control
• Operational control involves implementing operational
plans. It regulates day-to-day results and is concerned
with rules: budgets, schedules, and specific outputs
Types of control
• There are various types of controls in controlling
function. They are feed forward control, concurrent
control, and feedback control.
Feed forward control
• Feed forward control, also known as preliminary
control, is referred to controls, which are future-
directed and designed to ensure the quality of the
inputs.
These feed forward controls attempt to identify
deviations and take corrective actions before they
occur.
Concurrent control
• The concurrent controls, alternatively known as
screening control, can be referred to as a control
applied into the operations while transformation is
proceeding.
Feedback control
• Feedback control, also called post-action control,
concentrates on the organization’s outputs and
examines the completed task and the feedback of the
outcomes. But the problem of this feedback control is,
the organization unable to take corrective actions
when there is a defect in output.
‘Coordination’

Unit – 05
 Coordination
• Coordination can be described as that invisible
cord, which runs through all the activities of
the organization and binds them together.
• It is not a function of the management, rather
it is the essence of management, which is
needed at all levels and at each step of the
firm, to achieve the objectives of the
organization.
• In basic terms, coordination means the
integration and synchronization of the
activities, resources and efforts of the people
working in the organization, which leads to
unity of action, in the pursuit of the
organization’s objectives.
Need for Coordination
• We all are aware of the fact that there are several
departments in an organization, such as Finance,
Purchase, Production, Sales, Human Resource,
Marketing, Research and Development etc.
• the work of all the departments are interlinked
and interdependent. Further, there are three
levels in organizational hierarchy, wherein: Top
Level, Middle Level, and Lower Level.
Characteristics of Coordination
Integrates efforts of employees:
• Coordination integrates the efforts of the employees,
to translate it into a determined activity. It aims at
giving a specific direction to the group, to make sure
that the results obtained are according to the plans.
Unity of Action:
• There must be a unity of action in the accomplishment
of organization’s objectives. It is that implicit force
which binds various departments, divisions and units of
the concern, and ensures that they work with a single
focus.
Ongoing process:
• Coordination begins at the very first stage of planning,
thereafter organizational hierarchy is defined keeping the
company’s plans in mind. Then, the staff is hired according
to the company’s plans and hierarchy, and work is assigned
to them accordingly.
Pervasive Function:
• Coordination is a must for all the three levels of the
management as are interlinked and interdependent with
respect to the functions performed by these levels.
Deliberate activity:
• Various activities and efforts of the organization are to be
coordinated in a thoughtful and careful manner.
Importance of Coordination
• Growth of organization: As time passes,
organization grows in size, resulting in an
increased volume of work. There will be
numerous employees to handle the work,
which are hired for different departments.
• Locational differences: Big corporations are
located at different locations, even in different
countries, which does not allow people to
meet and communicate frequently.
Diversification of business:
• When a company decides to diversify its business, by entering into
new markets with a new product, the company starts new divisions
or ventures, to undertake the activities.
Specialization:
• Coordination helps in bringing together all the talented and
experienced employees together, to maintain a harmonious
relationship between various groups.
Synergy:
• It is a universal fact that the combined effort of two people is
always greater than those working separately. So, coordination
combines the efforts of the firm which helps in achieving synergy.
Coordination keeps a balance in all the activities by
ensuring the appropriate allocation of tasks to
suitable persons, to realize the organization’s
Objectives successfully.
इतिश्री