Controlling is a crucial function of management that ensures that activities are aligned with organizational goals and plans. It involves monitoring, evaluating, and adjusting processes to achieve desired outcomes.
The Process of Controlling
The control process typically follows these steps:
- Establish Standards: Setting clear and measurable performance targets, benchmarks, and standards that serve as a yardstick for evaluation.
- Measure Performance: Gathering data on actual performance using various techniques, including observation, reports, and surveys.
- Compare Actual Performance with Standards: Analyzing the collected data to identify any deviations or discrepancies between actual performance and established standards.
- Take Corrective Action: Implementing corrective actions to address any identified deviations and bring performance back in line with standards. These actions can range from simple adjustments to more significant changes in processes or strategies.
- Monitor and Evaluate: Continuously tracking performance and the effectiveness of corrective actions to ensure ongoing control and improvement.
Practical Insights
- Clear and Specific Standards: Effective controlling requires clear, specific, and measurable standards to provide a clear understanding of what constitutes successful performance.
- Regular Monitoring and Evaluation: Regular and frequent monitoring and evaluation are essential for timely identification of deviations and appropriate corrective action.
- Communication and Collaboration: Open communication and collaboration between managers and employees are critical for successful controlling.
Example: A company sets a production target of 1000 units per day. Daily production is monitored, and if the actual production falls short of the target, corrective actions are taken, such as identifying and addressing production bottlenecks, optimizing workflows, or providing additional resources.
