Control process

Presented By: Anam Abdul Qayyum

Presented To: Hamid Asif
What is controlling?
  A process of monitoring ,
comparing ,correcting performance
and taking action to ensure desired
results.
 It sees to it that the right things
happen, in the right ways, and at the
right time.
Importance of controlling
The value of the control function can be seen in three specific areas:
 PLANNING :
 All meaningful control techniques are, planning techniques.
 It is worthless to design control plans without taking in account how well the
plans are made.
 Empowering Employees

 Protecting the workplace

WHY CONTROL IS IMPORTANT?
 Plans rarely go smoothly.
 Most plans are executed by people and people vary in their
abilities, motivations and honesty.
 Plans become outdated and require revisions.
 For these reasons control is an important management
function.
 Control means controlling every task in an organization –
whether it is large, or delegated to some employee.
 Thus for every task delegated, there has to be a control
system that ensures completion of performances in line with
the plans
Planning controlling link 
The control process

  The control process is the three step process of measuring actual

performance, comparing actual performance against standard and taking
managerial action to correct deviations or to address inadequate standards.
  The control process assumes that performance standards already exists and
they do.
 Control Process
 A basic control process involves mainly three steps:
 ESTABLISHMENT OF STANDARDS
 Plans can be considered as the criteria or the standards against
which we compare the actual performance in order to figure out
the differences.
 Standards could be set on the basis of :
 Profitability standards : How much company would like to make as profit over a given
period of time.

 Market position standards : Standards indicate the share of total sales in the market.

 Productivity standards : How much various segments should produce.

 Employee attitude standards : Indicates what type of attitude the company managers
should have to strive.
 Social responsibility standards : Making contributions to the society.
 Short range goal : Standards that set a balance between the short range and long range
goals.
These are the standards an organization sets at the beginning of a control process.
Establishing standards
 This means setting up of the target which needs to be achieved to meet
organizational goals eventually. Standards indicate the criteria of
performance.
 Control standards are categorized as quantitative and qualitative standards.
Quantitative standards are expressed in terms of money. Qualitative
standards, on the other hand, includes intangible items.
 Standards generally are classified into two-:
• Measurable or tangible - Those standards which can be measured and expressed
are called as measurable standards. They can be in form of cost, output,
expenditure, time, profit, etc
• Non-measurable or intangible- There are standards which cannot be measured
monetarily.
 For example-performance of a manager, deviation of workers, their attitudes
towards a concern. These are called as intangible standard.
Step-1 Measuring

 This means setting up of the target which needs to be achieved to meet

organizational goals eventually. Standards indicate the criteria of
performance.
 Control standards are categorized as quantitative and qualitative standards.
Quantitative standards are expressed in terms of money.
Qualitative standards, on the other hand, includes intangible items.
Step-2 comparing

 This compares the degree of difference between the actual performance and the standard.
 Comparison of actual performance with the planned targets is very important. Deviation can
be defined as the gap between actual performance and the planned targets. The manager
has to find out two things here- extent of deviation and cause of deviation
 For example, if stationery charges increase by a minor5 to 10%, it can be called as a minor
deviation. On the other hand, if monthly production decreases continuously, it is called as
major deviation.
 Once the deviation is identified, a manager has to think about various cause which has led to
deviation. The causes can be
 • Erroneous planning,
 • Co-ordination loosens,
 • Implementation of plans is defective, and
 • Supervision and communication is ineffective, etc.
Step-3 Taking Managerial Action

 It is initiated by the manager who corrects any defects in actual

performance. Once the causes and extent of deviations are known, the
manager has to detect those errors and take remedial measures for it. There
are two alternatives here-
1. Taking corrective measures for deviations which have occurred;
2. After taking the corrective measures, if the actual performance is not in
conformity with plans, the manager can revise the targets.
Correct Action
Managerial Decision In Control Process
Types of Control 

 There are three types of control viz.

1. Feedback Control: This process involves collecting information about a
finished task, assessing that information and improvising the same type of tasks in
the future.
2. Concurrent control: It is also called real-time control. It checks any problem
and examines it to take action before any loss is incurred. Example: control chart.
3. Predictive/ feedforward control: This type of control helps to foresee
problem ahead of occurrence. Therefore action can be taken before such a
circumstance arises.
 In an ever-changing and complex environment, controlling forms an integral
part of the organization.
REQUIREMENTS FOR ADEQUATE CONTROL

 Control should be tailored to plans and positions.

 Control must be tailored or individual managers and their responsibilities.
 Control should point up exceptions as critical points.
 Control should be objective.
 Control should be flexible.
 Control should be economical.
 Control should lead to corrective actions.
It is here the controlling process comes to an end. Follow up is an important step because
it is only through taking corrective measures, a manager can exercise controlling
Controlling process thus regulates companies’ activities so that actual performance
conforms to the standard plan.
Control Process of McDonald’s