OCM 2 Marks Each

Planning is the father of controlling: Controlling exists because of planning. Controlling keeps a check on activities decided in planning. In short, controlling does not exist without planning. Hence, it can be said that planning is the father of controlling.

Internal process: Controlling is an internal process for the organization. Control system plays an integral role in all the important activities of the organization such as production, sales, purchase, financial matters, financial accounts and working method of employees, etc. Since all these activities are part of business, they can be controlled. On the other hand, change in government policy, depression, inflation, changes in the psychology of people, etc. are external factors and hence cannot be controlled.

Continuous process: Controlling is an ongoing process. It never ends. It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan. Deviations from the set plan can occur at any level and at any time. Hence the organization constantly needs to supervise and control the activities done at various levels. In the controlling function, quality control and cost control are important activities that need to be constantly controlled.

In layman language, controlling means deciding the activities to be carried out, evaluate, the same and if required, take corrective measures so that they are done in conformity with plan developed by the organization. Controlling is the last step of management process. Although controlling is considered as the last step, function of controlling starts as soon as the activities are assigned right in the first stage i.e. the stage of planning. According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.” Controlling takes care of: Checking the progress of managerial tasks Comparing them with the standards set by the organization Identify deviations between the organizational standards and the actual work going on in the organization Remove such deviations by taking corrective actions

Dynamic process: Although what to control and how to control is pre-decided in the planning and controlling functions, it is quite likely that the parameters of control may change continuously depending upon situations. If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, it is said that although controlling is a planned function, it is a dynamic process.

If the standards are not met continuously and

If the organization over-achieves the standards.

Taking corrective measures.

Information is gathered for the business processes.

Standards can be set for cost price, income, capital, profit targets, production targets, cost targets, etc.

Setting standards for parameters to control.

Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.

In business enterprises if control is exercised efficiently, management becomes more efficient. So controlling is called the barometer of efficiency of management.

If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, although controlling is a planned function, it is a dynamic process.

The real objective of control is to see that workers work as per the plan and that they are guided properly to overcome mistakes and deviations. This helps the workers to improve their precision and hence efficiency.

People believe that under controlling a person is always monitored and hence his freedom is lost.

The core objective of control is to minimize deviations and errors in processes so that end product or service comes out as planned. In this sense, it can be said that control is related to future.

It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan. Deviations from the set plan can occur at any level and at any time. Hence, controlling has to continue at all stages and it never ends.

To see that errors, wastage and losses which occurred in the past are not repeated or take place in controlled manner.

At every level

According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.”

In layman language, controlling means to decide the activities to be carried out, evaluate, the same and if required, take corrective measures so that they are done – in conformity with plan developed by the organization.

Communication is a two way process. It includes give and take of information so; it is a wide concept while reporting consists of transmission of information on the progress of activities to the top management by way of reports. Do, reporting is a one-way process which includes reporting which is a one way process. In short, communication is wide concept, while reporting is just a part thereof.

Informal communication is based on the human relations and friendship. The rules regulation or principles of authority and responsibility of the organization do not apply on to it. On account of it, the co-ordination of activity becomes easy and trust among employees increases. So, it is not against the original objective of forma; communication. The main function of formal communication is to achieve objectives by co-ordination and controlling activities. Group of persons created informally help in this function. Still there is no element of responsibility and so, it cannot be accepted as alternative to the formal communication.

Many matters are communicated by speaking. But many of the persons to whom it is spoken neglect it or do not give complete attention. So, they cannot understand the message in right meaning. Only very few persons listen the messages attentively and understand them in the right way. On account of this, proper evaluation of oral communication is not made.

Characteristics of Informal Communication :

• The characteristics can be noted as under :
• Informal communication depends on the human relations.
• Informal communication does not require orders or any control.
• It can be explained orally or through symbolic language.
• It is simple and flexible.
• There is no such process in informal communication.
• Informal communication is not supplementary but complementary to the formal communication.

Financial incentives are boon for skilled and proficient employees because financial security to the employees and raises his social status. The employee who has the skill and proficiency can get financial incentives by giving better results.

A person must possess the following qualifies to be a good and effective leader.

• Physical Qualities :

• Good health is a prime requisite for en effective leader, which enable him to remain active. Besides this, physical structure, attractive personality, cheerful nature, inspires the subordinates.

• Intellectual Qualities :

• A good leader should have intellectual qualities. These qualities include decision making power, mental ability, grasping power, scientific approach, curiosity, reasoning relationship, human skill etc.

• Other Qualities :

• In addition to the above, a leader should have pleasant personality, courage, sense of co-operation, zeal, tact, interest in work, affection, patience etc.

Functions of supervisor :

• To plan the functions and to remove the hurdles.
• To provide necessary guidance and direction to complete the work on time.
• To supervise the employees constantly to save time and labour.
• Supervisor does the function of integration of employee’s personal interest with the interest of productivity of business.
• To motivate and encourage the employees to increase their efficiency
• To maintain feeling of oneness among the employees.
• To make the communication work faster.
• To give guidance regarding the use of new technology introduced in the business.
• To maintain discipline among employees.
• Supervisor does not have to work as controller but as an educator.
• Supervisor does not have to work as controller but as an educator.
• The supervisor become a friend, philosopher and guide to his workers and helps them constantly in their work.

• Importance of Direction :

• The importance of direction, in accordance with the different activities of management are as follows :
• Increase in efficiency :
• Direction gives the clarity of the functions of the employees, authority and responsibility.
• So, their efficiency increases.

• Assessment of Efficiency :

• Assessment and evaluation of employees performance is done through direction.
• Matters like whether the employees have done work as per direction or not, how much work is completed, how much efficiency is increased etc. Can be accessed through direction.
• Motivation of Employees:
• Direction makes employees aware of the right procedure of work, policy and rules of the business unit. So they are motivated to work.

• Effective Planning :

• A planner can chalk out a plan by collecting necessary information through the subordinates. The implementation of planned objectives depends on the direction given to the employees.

• Effective Organization :

• Due to direction, even employees become aware about his authority and responsibility.
• So, orders and instructions given by the boss are followed properly which makes entire organization effective.

• Co-ordination and Control :

• Direction reduces the chances of work related mistakes and errors.
• Therefore it becomes easy to get the work from employees as per decided targets and controlling becomes effective.

• Increase in Enthusiasm :

• Employee’s interest in work get increased through direction.
• They can bring solution, if any hurdle is created.
• As a result there is continuity in work which boost up the employees enthusiasm.

• Finding out Deviation :

• Through direction, it can be supervised that whether the functions are done as per decided standards or not.
• So the undesirable deviations can be found out and regulated in the initial stage of production and deviation can be controlled by taking effective steps.

The strategy of war includes the uses of tools, material and manpower. It also considers the points at which special efforts are to be concentrated, the matter of complexity of economy and continuity. Similarly in the business unit also direction is given for achieving business objectives by maximum utilization of tools and manpower. For this departmental heads are responsible to provide necessary orders and suggestions.. Thus, function of direction and providing guidance is alike making strategy of war.

Following are the measures/suggestions to overcome the Barriers of communication.

• Directions should have to arrange communication system as per the organizational structure.
• Information given by sender should be precise so that, the receiver can understand properly.
• An appropriate medium of communication should be selected because each medium of communication have different effects.
• Communication is a two way process, it should be arranged in the manner as it can flow in both the directions easily.
• Both the parties of communication should have feeling of mutual trust and co-operation.
• Communication channel should be shorter as much as possible so that the flow of information will not stop and there will be no delay in communication.
• Communication system should be fast. It means care should be taken to avoid delays.
• As communication system is goal ordinate, the aims of communication should be kept in mind before broadcasting any message.
• Broadcasting of unnecessary information increases the burden of communication so, the broadcasting of information should be proper.
• Time to time evaluation of communication system should be done. So as per changing situation, changes can be made.
• During the entire process of communication sender should have to leave his personal benefit and interest. It means message sender should not have to hide any message purposefully or give incomplete information or present the message eccentrically (in unusual form).