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
Control provides real-time data and insights that aid in decision-making. It helps managers make informed choices based on the current situation.
The Process of Control
The control process consists of several steps:
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
Analyze the measured performance against the standards. Identify any deviations or variations that require attention.
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
Control is about monitoring and regulating activities to ensure they align with organizational goals, and it is essential for achieving objectives, improving efficiency, maintaining quality, and informed decision-making through a structured process of establishing standards, measuring performance, comparing results, taking corrective actions, and seeking continuous improvement.