OCM 3 Marks Each

It is an end activity of management:

• In the management process, the planning function decides organizational objectives, organizing function implements them and directing gives direction. After these functions, the actual role of controlling begins.
• Thus, it is very important that all managerial functions are performed before control is exercised. As a result, control is the end activity of management.

• A general perception towards controlling is that under it a person is always monitored and hence his freedom is lost.
• This perception has been developed from older management system where in the business owners used to keep a very strict supervision on their organizations.
• Such supervision created a fear of making mistakes and a negative environment.
• The real objective of controlling is not to spread fear but to encourage innovation and quality production. Systematic controlling leads to lesser mistakes, higher quality and production and improved productivity.
• This also creates opportunity for employees to improve upon their mistakes and personal efficiency.
• Thus, controlling is not a negative but a positive function.

Planning and controlling are two sides of the same coin:

• Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
• The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
• Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
• Thus, planning and controlling are two sides of the same coin.

Planning and controlling are two sides of the same coin:

• Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
• The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
• Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
• Thus, planning and controlling are two sides of the same coin.

An organization derives following benefits by adopting corrective measures:

• Time saving
• Reducing customer complaints
• Increasing efficiency of employees
• Increasing efficiency of business processes
• Saving organizational resources such as raw material, capital, etc.
• Increasing customer loyalty and trust
• Improving prestige in the market

Corrective measures:

• Corrective measure is the last stage of the controlling process.
• In the fourth stage, the activities are compared against set standards to find out deviations.
• If deviations are present, necessary corrective measures can be ‘ taken.

Corrective measures:

• Corrective measure is the last stage of the controlling process.
• In the fourth stage, the activities are compared against set standards to find out deviations.
• If deviations are present, necessary corrective measures can be taken.

Measuring performance:

• After gathering information about the performance of business performance, the set parameters are measured.
• The objective of measuring is to obtain data from the various processes of the organization so that it can be later compared with the set standards.
• Measurement can be either qualitative or quantitative or both.

Setting standards:

• The first stage of controlling is to set standards. Standards measure efficiency of the processes and people.
• By setting standards, the organization can compare if the activities are taking place according to the set standards.
• Unless standards are set, it is not possible to decide what to control and how to control.
• These standards can be both qualitative and quantitative.
• The standards could be set for cost price, income, capital, profit targets, production targets, cost targets, etc.
• Standards may be set for long term or short term.
• Standards are decided at the top level management. Employees and subordinates are informed about the same.
• The employees then plan their work according to the given targets and they constantly strive to maintain these standards.

Stages of controlling process:

1. Setting standards
2. Gathering information
3. Measuring performance
4. Comparing actual performance with set standards
5. Corrective measures

Protection against change:

• How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
• 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.
• Thus, planning and controlling give protection against changes.

The success of planning depends on internal and external factors.

• Internal factors can be controlled by management, but external factors like government policies, competition, boom-slump, shortage of raw material, taste of consumer, change in fashion needs to be controlled.
• Management studies the external factors and changes in them and takes the precautionary measure accordingly.
• So it can be said that controlling helps the business unit during changing.

In a sea a sailor comes to know about the directions with the help of compass.

• With the help of compass captain is able to find the destination.
• Similarly controlling also compares the actual performance with the established standards and comes to know if the business is moving in the positive direction or negative direction.
• Thus this controlling acts similarly as compass.

A chariot with a charioteers is directness and cannot achieve any objective, similarly in a business unit if controlling is not there, deviations cannot be found out and objectives would not be achieved as pre determined. Thus we can truly say that a business unit without controlling is similar to a chariot without charioteer.

Man is at the centre of controlling.

• Controlling is done for the improvement of the activities of workers, by the workers and for the workers.
• Control is exercised on workers (manager) every activity is ultimately performed by the persons.
• The errors and deviations are also due to human weaknesses.
• The corrective actions are also taken by human.
• That is why we can truly say controlling is a person oriented or subjective activity.

Just like all other functions of management, controlling is also a continuous activity.

• Once the work of control is undertaken and divisions are found and corrective actions are taken it cannot be said that such mistakes will not be repeated in future.
• There can b e various reasons behind the difference between predetermined standards and achieved results, so management has to continuously analyze the reasons behind such decisions so that corrective actions can be taken.
• Controlling also has to keep a watch on quality control production control etc.
• Thus, we can say controlling is a continuous activity.

In controlling, the comparison is done between the pre decided standards and the actual results.

• Control is not a negative activity.
• The aim of controlling is not to harm or harass any employee but to compare standards with, actual and find out deviations, and try to remove this deviations.
• To check whether all the activities in the business unit is being carried out as per planning or not, is the work of controlling.
• Thus controlling evaluates the results achieved by the employees.
• Controlling is not an activity hindering the growth of employees but it evaluates the results achieved by worker and helps him to take corrective action in case deviations are found.
• Thus we can say controlling evaluated the results achieved by workers/employees.

Controlling is undertaken at all the level of management.

• Controlling is not limited to any one level of management.
• The officers at various levels of management had undertaken controlling at their level.
• The level of controlling cannot be same at each level management.
• There is more controlling at soft level compared to bottom level management.
• Management is a omnipresent process.
• When two or more people are working towards achieving a common objective, management becomes necessary, and wherever management is present the presence of controlling is inevitable.
• Controlling is done at all the level of management, in all industries, in al the departments this we can truly say that controlling is an omnipresent activity.

Barometer is a scientific instrument used to measure the pressure of air in the atmosphere.

• In the same any with help of controlling pre determined objectives can be compared to actual results and deviations can be found out and corrective actions can be undertaken.
• This will help to know the increase and decrease in the efficiency of workers.
• This controlling is the barometer at management.

Planning defines objectives and clarifies which objectives are to be achieved.

• This set standards of planning act as a base for controlling.
• Thus from this we can say planning is activity providing standards for controlling.
• It clarifies which person has to undertake which work in the given time frame.
• Both this activities are necessary to take corrective actions and keep control.
• Thus we can say it is possible to measure performance without a set standard, in the similar way it is impossible to exercise control without planning.

Planning is the first step of management and controlling is the step of management.

• The aim of controlling is to compare the achieved results with the pre determined standards.
• Controlling finds out the divisions and rectifies it.
• The function of controlling is to see that the mistakes of past are not repeated in future, and take corrective action to rectifies it.
• The function of controlling is to see that the mistakes of past are not repeated in future, and take corrective action to rectify the mistakes.

Last Stage of Controlling Process: Taking Corrective ActionThe final stage in the controlling process is taking corrective action. After comparing actual performance with the set standards and identifying deviations, this stage involves:

• Analyzing the Causes of Deviations: Understanding why the performance did not meet the standards.
• Implementing Measures: Correcting the problems or shortcomings to bring performance back on track.
• Adjusting Plans or Processes: Modifying plans, procedures, or resources if necessary to avoid future deviations.
• Preventing Recurrence: Ensuring the same errors or issues do not happen again by improving systems or providing training.

Taking corrective action ensures that organizational goals are achieved efficiently and effectively by addressing any issues found during the control process.