•The concept of controlling
•Characteristics of controlling
•Objectives of effective
•Requirements of effective
•Kinds of techniques in
•Limitations in control
Outside the context of an organization, what/who comes first in
your mind when you hear the word "controlling"?
ⓘ Start presenting to display the poll results on this slide.
is a systematic exercise which is
called a process of checking actual
performance against the standards or
plans to ensure adequate progress
and also recording such experience as
is gained as a contribution to possible
• To make the plans more effective
• To make organizations effective
• To help in Decision Making
• To apply corrective measures
• To maximize the utilization of resources
• To motivate employees
• To fix responsibility
• To face the challenging environment
• Reflecting Organizational Needs
• Forward Looking
• Promptness in
• Pointing out Exceptions at Critical Points
The method of personal observation and guidance is one of the oldest techniques of
controlling. It is a traditional technique in which supervisors review the work of employees.
In this way, supervisors are in direct contact with employees and have first-hand knowledge
of the ways of working.
The statistical method is used to make a total analysis of the data and reports that are
measured using averages, ratio, percentages, mean, median, and more. The data and
information mentioned in statistical reports help managers to understand the problems and
find out the appropriate solutions to handle them.
It is a situation of no profit no loss. The break-even analysis is in the
form of sale output, production volume, the price of products, and it
is also used to define the profit and loss according to the selling
price, the volume of goods, and different ratios. It also measures the
performance and the impact on the revenues.
Used by managers for controlling the different functions and operations that are
performed according to the set budget for a particular plan. It is an important method
of controlling that helps an organization to decide the level of spending and evaluating
This technique enables an organization to evaluate the benefit received from the
investment, and measure the total profits made against the capital that is invested.
The technique of ratio analysis gives a total understanding of the organization’s
performance, efficiency, liquidity, and profits. It is the most common form of
controlling technique used by enterprises.
Responsibility accounting is a system of accounting in which the different units of an
organization are converted into responsibility centers. A production budget acts as a
guide in knowing whether the costs are under control or not. A responsibility center can
be a division, department, or section headed by a manager who is accountable for
achieving specified targets.
Auditors investigate the in-depth performance of management concerning the day-to-
day working of systems and functions. In management audit, the auditor systematically
evaluates the operational procedures and various management functions. Auditors do
thorough checking of the entire management system.
Program Evaluation and Review Technique (PERT) and Critical Path Method
(CPM) are significant techniques used for controlling. CPM and PERT
methods are used to minimize the cost and time for particular activities. It
helps in taking necessary actions for completing the activities within the
Management Information system (MIS) basically provides information for effective
decision-making. Managers can retrieve any data as and when needed. It is one of
the cost-effective controlling techniques available for managers.
Moreover, it provides information at the right time and helps manage a huge bundle of
data. The information obtained from MIS is accurate and facilitates decision-making.
• Influence of External Factors
• Lack of Satisfactory Standards
• Opposition from Subordinates
• What is Controlling? Types, Characteristics, Importance, Process, Techniques,
• Idea of Controlling, https://unacademy.com/content/cbse-class-11/study-
• Principles of Management: Controlling,
• Venkatesh, Control: Definition, Characteristics, Importance and Limitations,
Hinweis der Redaktion
Controlling is one of the important functions of management that enables an organization to measure and rectify the irregularities in the organizational performance. Controlling helps management to limit errors in work. It also ensures standardized work with minimum or no wastage of resources and individual efforts.
According to Henry Fayol, in an undertaking, control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.
Controlling comes after the processes of planning, organizing, staffing, and directing. It is performed at every level of management (top, middle and lower levels). Managers and supervisors use controlling to monitor the activities and tasks of subordinates to ensure that the work is being done according to the plan.
It is a managerial function
The top-level executives are not the only ones who exercise control; but managers, supervisors, departmental heads or leaders also control their subordinates. It is the duty of managers to control subordinates and team members for accomplishing goals. Managers should take necessary actions when they see deviations from the planned objectives.
It is continuously performed
Controlling is a regular process. The executives and managers have to keep the track of the processes and the work done on a continuous basis. It an ongoing process that consists of constant revision and evaluation of standards according to the change in a business environment.
It is a pervasive function
Managers at every level within the organizational structure exercise different controlling methods. The nature of control may differ at the top, middle, and bottom levels. People at the top-level require controlling for making policies and setting organizational objectives.
Managers at the middle and bottom levels exercise control for implementing those policies and plans at the lower level. Operational control is exercised at a lower level. It is the control exercised on workers to ensure that work is performed on a regular basis.
It is goal-oriented
The main motive behind controlling every action and process is to achieve the desired objective. The main motive behind controlling at every level of management is to achieve goals. Therefore, controlling is a goal-oriented process. Controlling is needed to keep all the functions moving on the right track. Controlling helps organizations to take timely corrective actions in case of any exigencies.
It is a flexible process
The process of controlling involves change in plans or standards as per the changes in the business environment. It is not a rigid process and it helps in coordinating other functions of management. It is a dynamic process that involves a change in plans or standards because of uncertainties in the business environment.
It is forward-looking
Control is always forward-looking. Controlling helps managers to look for alternatives by learning from previous mistakes or experiences. Work done in the past is already gone and thus, cannot be controlled. Measures can be taken to control future activities only.
Past performance can provide the base for controlling future results. Managers must learn from past performance in order to find out the reasons behind a particular outcome. Corrective actions must be taken to ensure that present and future work are not adversely affected.
The main objectives of controlling is to check and ensure the performance of work is in accordance with the plans.
To make the plans more effective - Managers have to plan properly to measure the progress and get feedback to direct them to do the work effectively.
To make organizations effective any Organization needs control for achieving its goals and objectives.
To help in Decision Making – The ultimate purpose of control is to help managers for taking better decision. Control gives awareness to the managers regarding the problem and give necessary information for making decisions.
To apply corrective measures– Control helps to find out the deviations from the actual and help to take corrective actions because of this measures mistakes can be prevented.
To maximize the utilization of resources – Control helps to utilize the men, material and machinery to the maximum to attain the goal and avoid misuse of resources.
To motivate employees – Controlling helps to motivate the employees and make the employees to work with dedication.
To fix responsibility – The objective of control is to determine the authorities and fix the responsibilities of the employees regarding their work performance.
To face the challenging environment - Business environment changes oftenly and the plans must be changed accordingly. These changes can be known with the help of control and necessary changes are made in plans.
Control is necessary in every organization to ensure that everything is going properly.
1. Reflecting Organizational Needs
All control systems and techniques should reflect the jobs they are to perform. There may be several control techniques which have general applicability such as, budgeting, costing, etc.
2. Forward Looking
Control should be forward looking. Though many of the controls are instantaneous, they must focus attention as to how future actions can be conformed with plans.
3. Promptness in
An ideal control system detects deviations promptly and forms the manager concerned to take timely actions.
4. Pointing out Exceptions at Critical Points
Control should point exception at critical points and suggest whether action is to be taken for deviations or not some deviations in the organizations have no impact while others, through very little in quantity, may have great significance. Thus, control system should provide formation for critical point control and control on exception.
The control should be objective, definite and determinable in a clear and positive way. The standards of measurement should be quantified as far as possible. If they are not quantifiable, such as training effectiveness etc. they must be determinable and verifiable.
Control should be flexible so that it remains workable in the case of changed plans, unforeseen circumstances or outright failures.
Control should be economical and must be worth its costs. Economy is relative, since the benefits vary with the importance of the activity, the size of the operation, the expense that might be incurred in the absence of control and the contribution the control system can make.
Control system must be simple and understandable so that all managers can use it effectively.
Control system should motivate both controller and controlled.
The control system should reflect organizational pattern by focusing attention on positions in organization structure through which deviations are corrected.
Control takes planning as its base for measuring the work performed. In an organization, both planning and controlling work simultaneously. An organization after acquiring the required resources (material, money, machines, man and methods) plans to use these resources optimally by establishing standards.
The process of controlling starts by establishing standards or plans, matching established standards with the actual work done and taking corrective actions in case any deviation is found.
Standards refer to the plans or targets that are established by an organization to work in the right direction. These standards are also considered as the criteria for judging employees’ performance. Standards can be established in the form of profitability standards, market position standards, product leadership standards, social responsibility standards, etc.
Standards are of two types:
Measurable or tangible standards: These standards are measurable and can be expressed in the form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible standards: These standards are non-measurable like manager’s performance, changes of workers, employees’ attitudes, etc.
The next stage in the process of controlling is to measure the actual performance of men and machines. Controlling helps managers to analyse and judge the performance with the help of tools like statistical data, audits, special reports and analysis.
It is important for managers to regularly monitor, evaluate, and keep a track of the work and activities performed by their subordinates for taking corrective measures, if required.
Comparing the actual performance against the set standards
Managers have the responsibility of comparing the actual performance of workers with the pre-determined targets that help to identify irregularities. The deviation identified is the gap between the actual performance and set standards.
It is the responsibility of the manager to find the extent and reason for the deviations. Managers need to judge if the actual performance is according to the preset plans. If the deviations in the performance are critical and major, then necessary measures must be taken to find out the cause of the deviation. If the deviations are minor hen organizations can ignore them. The reasons for deviations could be as follows:
Wrong implementation of plans
Taking corrective action
Once the discrepancies between actual performances and pre-determined goals have been identified, then it is necessary to take corrective measures. Managers need to implement corrective actions by changing or modifying ways or plans.
The corrective action done on time can prevent loss, mistakes and reduction in quality. Corrective measures should also follow the procedure for establishing new standards.
Limitations in Control
Though control is essential for better performance and maintenance of good standards, there are certain limitations also.
Some of the limitations are discussed as such:
1. Influence of External Factors:
There may be an effective control system but external factors which are not in the ambit of management may have adverse effect on the working. These factors may be government policy, technological changes, change in fashion, etc. The influence of these factors cannot be checked by the control system in the organization.
The control system involves huge expenditure on its exercise. The performance of each and every person in the organization will have to be measured and reported to higher authorities. This requires a number of persons to be employed for this purpose. If the performance cannot be quantitatively measured then it will be observed by the superiors. The exercise of control requires both time and effort.
3. Lack of Satisfactory Standards:
The performance of certain activities involving human behavior cannot be fixed in terms of quantities. It is difficult to fix standards for activities like public relations, management development, human relations, research, etc. The evaluation of work of persons engaged in these activities will be difficult.
4. Opposition from Subordinates:
The effectiveness of control process will depend upon its acceptability by subordinates. Since control interferes with the individual actions and thinking of subordinates they will oppose it. It may also increase the pressure of work on subordinates because their performance is regularly monitored and evaluated. These factors are responsible for the opposition of controls by subordinates.