PRINCIPLES OF MANAGEMENT

CONTROLLING FUNCTION OF MANAGEMENT

~ Riya Agrawal
 CONCEPT OF CONTROLLING
 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. According to Louis Allen, “Control means to
guide something in the direction it is intended to go.”

 Controlling is a regulatory activity and is rightly treated as the “soul of management process”.

 Without planning there will be nothing to control. Along with this, it is equally true that without control,
planning will be only an academic exercise.

 Control can mean several things such as:

To check or verify

To regulate

To compare with a standard

To exercise authority over

To curb or restrain
 CHARACTERISTICS OF CONTROL FUNCTION
Controlling is the core of management
process but controlling in itself is not
management. Actual performance is
measured against expected performance
and remedial measures.
Like other management functions,
control is required to be exercised in a
continuous manner for finding out
possible deficiencies and for the
introduction of remedial measures.
Control is necessary at all levels of
management and its extent changes at
The aim of control system is to evaluate
different levels of management. For
the actual performance against the
example, the top level management is
standard. In case of deviation, suggest
concerned with administrative control
corrective measures.
whereas at lower level, control exercise
is operational.
Control function is a dynamic one. It
Control techniques avoids wastage of
changes its techniques as per the changes
materials and human efforts by finding
in business environment. It considers the
out deficiencies and adoption of suitable
past experiences and adjusts its functions
remedial measures.
accordingly.
 NEED FOR CONTROL
Complexity of modern organization- Control is necessary for
effective execution of a plan. Integration of all departments
and activities is possible through controlling.

Weakness in the psychological makeup- In absence of control

people become lazy or they are not careful about their
performance. In the long run their performance is always the
below standards.

Employees may succumb to temptations- In the absence of

control, employees may succumb to temptations hence it is
important to create an orderly environment and check
undesirable practices of subordinates

Maintenance of standards- Control system is needed in order

to check efficiency and lack of initiative on the part of
subordinates.
 TYPES OF CONTROL METHODS

Past-oriented controls :
• These measures results after the process. They examine event in a
particular period in the past. E.g. accounting records and inspection of
finished goods. These controls are used to plan future behavior.

Future-oriented controls :

• These are designed to measure results during the process so that action
can be taken before the job is done. They serve as warning posts to
direct attention rather than to evaluate. E.g. cash flow and fund flow
analysis.
 ELEMENTS IN CONTROL PROCESS
1) Setting/Establishing targets:

Setting standards is the first step in the control process . A

standard is a criterion or measuring rod against which the
actual performance is to be measured . The standard fixed
indicates expected result from a particular process or
activity. E.g. production of 2000 units per day or sale of
1500 articles per day.

2) Measuring actual performance:

In this second step of control process, actual performance

will be measured in the light of the standards established.
The actual performance may not be exactly as per the
expected performance.
3) Comparing actual performance with the standard performance and identifying the deviation, if any:

In this step of control process, actual performance is compared with the expected performance in order to find out
deviation. The causes of such deviation are studied for suitable remedial measures as a manager cannot change
instantly whatever wrong has already taken place. For example, shortfall in the production maybe due to high rate of
labour absenteeism.

4) Introducing suitable corrective measures:

In this step of control process, suitable corrective measures are taken at the appropriate levels to avoid possible
deviations in future. Here, the purpose is to improve the performance in the future. The manager responsible for
control has to take the corrective measures and see that such measures are given effect in the right manner.

5) Taking follow-up action:

As deviations can be removed only through the execution of corrective measures an inbuilt feedback mechanism is
required. Thus, the feedback mechanism is important in the control process.
IMPORTANCE/ADVANTAGES OF CONTROL

Facilitates achievement of targets

Avoids deviation

Avoids wastage

Provides remedial measures

Removes weak points

Raises employee morale

Objectives oriented