Prof.Chhaya Patel

CONTROL-CONCEPT

AND PROCESS

Meaning of Control

As organisations increase in size and complexity, likelihood of deviations in the departmental activities also increases.

Controlling minimises deviations so that organisational goals are achieved efficiently.

Controlling cannot prevent deviations, it can only minimise them by taking actions that reduce their recurrence.

Nature of Control

1. It is a pervasive function

2. It is a process

3. It is an inevitable function of management

4. It is closely associated with the planning function

5. It is associated with all managerial functions

6. It is a corrective device

7. It is a positive function

8. It is a means, not an end

Importance of Control

1. It helps in detecting mistakes

2. It helps in managing complex situations

3. It helps managers face change and uncertainty

4. It helps managers in monitoring the actions of employees

5. It helps in identifying future potential of the organisations

6. It facilitates delegation

7. It facilitates decentralisation

8. Coordination

9. Psychological impact

Relationship between Planning and Control

1. Planning identifies actions and controlling ensures that actions are carried out.

2. Poor control system is followed by failure of plans and effective control system reinforces the plans.

3. Controlling helps managers in revising the plans or abandoning them altogether.

4. Framing plans presumes a well-designed control system and controlling function presumes plans within the reach of organisation, with the given human and non-human resources.

Types of Control

1. Feedforward Control : Before starting the production process, organisation needs inputs in the form of men, material, money and other resources. Feedforward control chooses the best inputs to avoid defective outputs which do not conform to standards.

2. Concurrent Control : Feedforward controls are based on future. Concurrent controls are, therefore, more practical than feedforward controls. They control the activities while they are being performed. It is controlling the process of production before the goods and services are produced.

3. Feedback Control : Feedback control analyses the final output, compares it with standard output, finds deviations and checks the deviations. It brings actual performance in conformity with planned performance.

Resistance of Control

Control should be viewed as a positive human behaviour. Yet, people view it as check on their activities which limits their freedom to work and, therefore, often resist control. Resistance to control arises on account of the following reasons:

1. Inaccurate / Inappropriate controls

2. Excessive controls

3. Unachievable standards

4. Fear of accountability

5. Unpredictable standards

6. Lack of authority over the area of control

Ways to Overcome Resistance of Control

1. Explain to workers the need for controls

2. Change in workers’ attitude

3. Realistic control

4. Reasonable standards of performance

5. Revaluation of controls

6. Focus of attention

7. Flexible controls

8. Participation of employees

9. Controls should be associated with a system of reward

10. Range of control

Control Process

1 Determination of areas of control

2. Setting standards

(i) Time standards

(ii) Production standards

(iii) Cost standards

(iv) Quality standards

(v) Behavioural standards

3. Measurement of performance

4. Comparison of performance against standards

5. Correction of deviations

Critical Point Control

As organisations increase in size and complexity, managers, single handedly cannot control all activities of the organisation.

They are occupied with many important managerial aspects to inspect and control every organisational activity.

Managers must, therefore, focus on those critical points or areas of control which best reflect organisational goals.

Poor performance in these areas indicates deviations from the standards and requires the control system.

Control by Exception

Managers cannot control every organisational activity.

When the deviation is not significant (when it is within the range of control), the matter may not be reported to top managers. If deviations are significant (beyond the acceptable range of errors), they should be reported up the hierarchy for managerial action. Managers should concentrate only on significant deviations rather than each and every organisational activity.

Levels of Control

1. Operating Level Controls : Controls at operating level are usually

exercised by lower-level managers. They implement operating plans

relating to day-to-day activities of the firm.

2. Tactical Level Controls : They control the departmental objectives and

plans by monitoring departmental performance at regular intervals of

time.

3. Strategic Level Controls : These controls are adopted by top level

managers. They ensure that strategic plans are implemented effectively.

They assess the impact of environmental factors on organisational

policies.

Effective Control System

1. Future-oriented

2. Multiple control system

3. Economical

4. Timeliness

5. Flexible

6. Control of critical points

7. Operational

8. Organisational climate

9. Objective standards

10. Control by exception

11. Positive environment

Principles of Control

1. Principle of the purpose of control

2. Principle of future-directed controls

3. Principle of control responsibility

4. Principle of efficiency of controls

5. Principle of preventive control

6. Principle of reflection of plans

7. Principle of organisational suitability

8. Principle of individuality of controls

9. Principle of standards

10. Principle of critical point control

11. The exception principle

12. Principle of flexibility of controls

13. Principle of action