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Basic Steps of the Control Function
Controlling is a systematic process of checking attained performance against predetermined plans or standards with an object of ensuring organizational success (Morden, 2004, p. 141). It involves the verification of existence of conformities between actual output and established plans and principles.
Controlling ensures effectiveness and efficiency in the use of an organization’s resources. The basic steps of the controlling function include the setting of standards, measurement of output, comparison of the achieved and standard performance and taking corrective action (Morden, 2004, p. 141).
Setting up of standards of performance is the first step in exercising the controlling function. Standards are targets or plans which are to be attained within a specified period in the life of an organization (Morden, 2004, p. 142). They are criteria for measuring and making an assessment of performance.
Performance standards are of two kinds, tangible and non-tangible standards. Tangible standards refer to targets which can be determined and expressed in quantitative terms. Management scholars also refer to intangible standards as non-measurable standards. Measurable standards take the form of output, expenditure, cost, time, and profit among others.
Intangible standards cannot be measured or expressed in quantitative terms since they are qualitative in nature. Examples of intangible standards include performance of a supervisor, attitude towards a matter, employee satisfaction and consumer satisfaction among others. Establishment of standards makes the controlling easy and objective (Morden, 2004, p. 142).
The second fundamental stage in the control process is the measurement of output. Management measures the actual performance to ease establishment of deviations (Morden, 2004, p. 142). Managers measure and express tangible standards in units, expenditure and profit among other quantitative terms. Management practitioners also measure performance using qualitative standards such as the workers’ morale and attitude, development of attitudes and the workers communication with their seniors (Morden, 2004, p. 145).
Once the management has measured performance, it should compare the achieved performance with the predetermined targets. This step aims at establishing deviations. Deviations are performance variances between the set targets and the real output (Morden, 2004, p. 145). At this stage, the management should establish the extent of variability and its causes. The management has a duty to establish whether the variance is positive or adverse or whether the attained performance tallies with the set targets.
In addition, the management has to practice control by exception in dealing with the variances (Morden, 2004, p. 147). Management has to establish those variances that are critical and significant to the organization. Minor deviations can be ignores while the major ones should be addressed in time.
Once the manager has identified and classified deviations, he or she should proceed to determine their causes. Deviations may be caused by poor planning, disjointed co-ordination, defective actualization of plans or poor monitoring and communication (Morden, 2004, p. 147).
The last step in exercising the control function is taking remedial action. Once the management has determined the extent and roots of variances, it should identify and take corrective action (Morden, 2004, p. 147). The management should focus the remedial actions on the deviations; critical deviations should be given priority while minor ones can be ignored. After the management has taken remedial actions if the attained performance fails to conform to plans, the management should consider revising its targets (Morden, 2004, p. 148).
The controlling function is a cyclic and endless process (Morden, 2004, p. 150). It is also intertwined with the other functions of management especially the planning function. Indeed, the range of activities engaged in planning and controlling functions substantially imbricate. Planning gives the controlling function a footing to operate on, and controlling gives meaning to the planning function.
Reference
Morden, T. (2004). Principles of management. Burlington: Ashgate Publishing Limited.
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