UNIT IV
MANAGERIAL
CONTROL
Definition of Controlling
Henry Fayol: Control
consists in verifying
whether everything
occurs in conformity
with the plan adopted,
the instructions issued
and the principles
established.
DEFINITION OF CONTROL
Koontz and O’Donnell:
Controlling implies measurement
of accomplishment /performance
against the standard & the
correction of deviations to assure
attainment of objectives
according to plans.
CONTROLLING AS A
MANAGEMENT FUNCTION
– A process of monitoring 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.
– Done well, it ensures that the overall directions of
individuals and groups are consistent with short
and long range plans of the organisation
– It helps ensure that objectives and accomplishments
are consistent with one another throughout an
organization.
– It helps maintain compliance with essential
organizational rules and policies.
FEATURES/CHARACTERSTICS
OF CONTROLLING
• Continuous process. •Strategic and results
• Flexible and dynamic oriented
process. •Understandable
• Future oriented. •Timely and exception
• Planning and oriented
controlling closely •Essence of control is
related. action
• Function of
management.
The Control Process
Standard Yes
Compare Do Nothing
Attained?
Performance
to Standard No
Objectives Variance Yes
Do Nothing
Acceptable?
Measure No
Standard Performance
Standard Yes Identify
Acceptable? Causes
No
Correct
Revise
Performance
Standard
THE CONTROL PROCESS
• Establish objectives • Comparing Results with
and standards- Objectives and Standards
Performance objectives are Establishes the need for action.
defined and the standards for Ways of making comparisons:
measuring them are set. Historical / Relative and
There are two types of Benchmarking
standards-output standard
and input standard
• • Taking Corrective
Measure actual
performance- Action-
Taking any action necessary to
To spot deviations or correct or improve things.
variances between what
really occurs and
what is most desired.
Three types of control on
the basis of time of action
Input Processes Output
Feed forward Concurrent Feedback
Control Control Control
Anticipates Corrects problems Corrects problems
problems as they happen after they occur
PRELIMINARY/
FEED FORWARD
Sometimes called the feed forward controls, they
are accomplished before a work activity begins.
They make sure that proper directions are set and
that the right resources are available to accomplish
them.
CONCURRENT
Focus on what happens during the work process.
Sometimes called steering controls, they monitor
ongoing operations and activities to make sure
that things are being done correctly.
FEEDBACK/POSTACTION
Sometimes called
feedback controls, they
take place after an action
is completed. They focus
on end results, as opposed
to inputs and activities.
Control Techniques
Control techniques may be broadly classified
into two categories:-
• Traditional control techniques.
• Advance / Modern control techniques.
Traditional Control Techniques:-
• Personal
observation.
• Statistical reports
and analysis.
• Break-even
analysis.
• Budgetary control.
Advance control techniques:-
• Self Control
• Management Audit.
• Programme Evaluation and
Review Techniques (PERT).
• Critical Path Method (CPM).
• Management Information
Systems (MIS).
Guide to Operations
Measures Progress
Uncover Deviations
Indicate Corrective Action
Policy Verification
Verify quality of various plans
Helps to review , revise and update plans
Helps to carry out the plans successfully
Managerial Accountability
Manager responsible for ultimate performance
Managers check performance of subordinates
Control help them to discharge their
responsibilities
Facilitates decision making and better
management
Employee Morale
Control brings order and discipline
Absence of control – lower employee morale
Psychological Pressure
Motivates employees to perform better
Rewards and recognition
Coordination in Action
Actions according to plans
Right direction
Correct inter relationship between various factors
Balance between ends and means
Focus on Objectives and Needs
Aim at accomplishing the organizational goals
Standards set should be realistic
Early detection of deviations
Suggestive
Merely pointing out deviations – not enough
Lead to corrective actions
Check undesirable deviations
E.g. – train employees, effective supervision, revise
standards
Suitability
Control techniques – suit nature of activities
E.g. – Different control system in a big and small
organization
Simple
Simple and easy to understand
If complicated – employees confused – poor performance
Forward Looking
Directed towards future
Anticipate future requirements
Identify situations that need new plans
Control by Exception
Some deviations have greater impact than others
Control every activity – not feasible
Critical Point Control - Control significant deviations only
Flexibility
Keep pace with changing environment
Adaptable to new developments
Alternative plans
Motivating
Consider human factor
Control work not workers
Free not restrict action
Prevent mistake not punish
Direct contact between controller and the controlled
Economical
Control system – worth its cost
Justifiable expenses
Savings > Cost of control
