Controlling Significance and Process of Control

What is Controlling?

• Controlling in management refers to the process of monitoring and regulating activities to ensure they align with the organization's goals and standards.
• It's about keeping things on track and correcting deviations when necessary.

Significance of Control

1. Goal Achievement

• Control is crucial for ensuring that the organization is moving in the right direction towards its objectives.
• It helps in tracking progress and making necessary adjustments.

2. Efficiency and Productivity

• Control measures help in identifying inefficiencies and wastage of resources.
• By addressing these issues, organizations can operate more efficiently and increase productivity.

3. Quality Assurance

• Controlling processes ensures that products or services meet specified quality standards.
• This is vital for maintaining customer satisfaction and reputation.

4. Decision-Making

The Process of Control

1. Establishing Standards

• Define clear and measurable standards or benchmarks against which performance will be evaluated.
• These standards can relate to various aspects of the organization, such as financial, operational, or quality standards.

2. Measurement of Performance

• Collect data and information to measure actual performance against the established standards.
• This involves comparing what was planned with what is happening in reality.

3. Comparing Performance

4. Taking Corrective Action

• When deviations are identified, take necessary corrective actions.
• This could involve adjusting processes, retraining employees, or making changes to strategies.

5. Feedback and Continuous Improvement

• Use the feedback gained through the control process to make ongoing improvements.
• This may involve refining standards and adjusting strategies based on lessons learned.
• Example: Let's say you run a bakery, and you set a standard for the maximum acceptable number of customer complaints about product quality per month.
• If you receive more complaints than allowed, you may investigate the issue, identify the problem, and take corrective action, such as improving quality control procedures or employee training.

Conclusion