2. What is controlling process ?
The Controlling process is a four step process of
establishment of standards, measurement of
performance, comparison of actual and standard
performance & taking remedial actions.
Controlling process is a continuous and ongoing
dynamic process in management of the organization.
The control process assumes that performance
standards already exists, and they do.
3. The Control Process
Taking
Remedial
Comparison Actions.
of Actual and
Measurement Standard
of Performance
Establishment Performance
of Standards
4. Establishment of Standards
Standards are the plans or the targets which have to be
achieved in the course of business function. They can also be
called as the criterions for judging the performance.
Standards generally are classified into two-
a. Measurable or tangible
b. Non-measurable or intangible
Controlling becomes easy through establishment of these
standards because controlling is exercised on the basis of
these standards.
5. Measurement of Performance
Measurement is an ongoing, repetitive process.
Frequency of measurements depends on the type of activity being
measured.
Measurements methods may be quantitative as well as qualitative or
a combination of both.
Measurements should be related to standards set in the first step of
control process.
6. Comparison of actual and
standard performance
o Deviation can be defined as the gap between actual performance
and the planned targets.
o Once deviation identified, manager has to think about various
cause which led to deviation. The causes can be-
a. Erroneous planning,
b. Co-ordination loosens,
c. Implementation of plans is defective
d. Supervision and communication is ineffective, etc.
7. Taking remedial actions
The manager has to detect errors and take
remedial measures for it.
Deviations should be analyzed.
It is necessary to take follow up action.