Concept of Control

Any organization makes a plan and implements it to achieve pre-determined goals or objectives. Different activities are to be performed as per such plan to attain the desired target. Thus, to keep such activities on track to achieve goals or objectives, a function is performed in management which is called control. Control is a management function that measures and compares actual performance with standard performance. While doing so, it finds the deviation (if any0 and takes necessary corrective actions. It is the last function of management which looks at the present and planned performance. From the deviations found under controlling, new plans have to be formulated and implemented for the future. Thus, it is known as both backward and forward-looking functions of management.

Key Definitions

Defined By	Definition
George R. Terry	Controlling is determining what is being accomplished that is, evaluating the performance and if necessary, applying corrective measures so that performance takes place according to plans”
Joseph L. Massie	“Contol is the process that measures current performance and guides it towards some pre-determined goals”
Koontz and O’Donnell	“The management function of control is the measurement and correction of the performance of subordinates to make sure that enterprise objective and plans devised to attain them are accomplished”
Henry Fayol	“Control consists in verifying where everything occurs in conformity with the plans adopted the instruction issued and principles established. It has the object to point out weaknesses and errors to rectify them and prevent reoccurrence”

From the above discussion and definition:

• Control is a management function concerned with measuring, comparing and finding the deviation of actual and standard performance.
• It finds what is obtained and what was aimed to obtain.
• It is concerned with finding deviations between planned and actual performance and taking corrective actions wherever and whenever required.
• It is the monitoring function of ascertaining whether organizational efforts are heading towards the stated objective or not.

Characteristics of Control

Control is an important function of management that ensures control over the work process and progress for the timely accomplishment of pre-determined goals. Thus, it has distinct characteristics. The Characteristics of control are mentioned below:

• It is a management function that brings balance between plan and actual performance
• It continuously analyzes and studies the implementation of standards, policies and procedures of the organization throughout its existence. Thus, it is a continuous function.
• It is a pervasive function as it prevails in all levels of management (Top, Middle and bottom level management0
• Control is a dynamic process as the standards of control has to be changed from time to time to adapt to internal and external organizational changes
• Control is concerned with measuring and comparing actual performance with standard performance
• Control helps in taking corrective steps if the actual performance deviates from standards set
• It is forward-looking as future performance can be made effective by correcting the deviation of current performance from the standard performance

Process of Control

Control is done through measurement and comparison of actual performance and standard performance. Thus, it has to be performed procedurally. The process of control has been explained below:

Step 1:

       Establishment of Standard

The process of control begins with the establishment of performance standards. Such standards are basedona comparison of actual performance. Thus, these are required to be set rationally. Performance standards could be either tangible or intangible. Tangible standards include monetary standards, time standards, financial standards etc. These are quantitative performance standards. On the other hand, intangible standards are qualitative standards in terms of the competency of managers, employee morale, the reputation of the enterprise, good public relation etc. A good mix of both tangible and intangible performance standards is required for an organization.

Step 2:

       Measurement of Actual Performance

The second step in the control process is concerned with the measurement of actual performance. Measurement of actual performance must be done in both qualitative and quantitative terms as specified while setting standards for performance. The measurement of actual performance is to ensure compliance of current performance with standards and prevention of future potential deviations. Such actual performance is measured through direct supervision, work surveys, monitoring, reports, time and productivity analysis etc.

Step 3:           

Comparision of Actual Performance

Under this step, the actual performance is compared with the pre-defined standards. Such comparison helps in finding any form of deviation of actual performance from standard performance. Such deviation could be positive or zero or negative. Positive deviation means is on the higher side than the standards planned or set. Zero deviation means the actual performance and standard performance are the same. However, the concerning situation is the negative deviation which means actual performance is below the standards.

Step 4:           

Analysis of Cause of Deviation

After comparing actual and standard performance and knowing the deviation, the cause of deviation should be analyzed. There could be internal or external causes resulting in such deviation in performance. Internal causes could be in the form of defects in planning, organizational defects, operational failure, low employee morale or motivation, internal delays etc. Similarly, external factors could be in the form of change in the price level, government rule changes, competitors’ strategy, intense competition etc. The cause of performance deviation in this regard has to be analyzed to look forward to future courses and corrective actions.

Step 5:           

Taking Remedial/Corrective Actions

The final step in the controlling process is concerned with taking remedial or corrective actions. With such remedial or corrective actions, the actual performance is brought intact with the standard performance. Such corrective actions involve modification of the plan, restructuring of organizational structure, betterment of supervision techniques, installation of improved and advanced machines etc. An organization has no control over the external environment. Thus, it has to prepare strategies and act to minimizeexternal adversities as far as possible. Such remedial or corrective actions ensure the tracking of actual performance to make it equal to standard performance and improve future confusion of actions as well.

Importance of Control

Control is confined to different activities in an organization. It applies to financial as well as non-financial aspects in an organization. Thus, it is considered one of the most important functions of management in an organization. The importance of control has been mentioned below:

1. Execution of Plan: Controlling measures, comparing and taking corrective actions to keep the actual performance in line with the pre-determined standards. It also helps managers in timely supervisionand monitoring of activities and ensures they are performed as planned. Thus, controlling ensures the effective execution of a plan.
2. Improves Efficiency: Controlling aims for the effective utilization of resources. This means it acts for the reduction of any form of wastage in the operation process. Thus, controlling ensures efficiency and improves it.
3. Morale Checks on Employees: Controlling means checking and measuring the actual performance of employees. No employee wants her/his performance to be below the standard. This brings a higher sense of responsibility among employees which pushes them to work better. This makes employee morale high.
4. Basis of Future Action: Controlling system enables the organization to take corrective actions to get remedies of deviations of achieved actual performance and pre-defined standard performance. This helps in taking precautionary actions for future courses of action.
5. Facilitates Coordination: controlling facilitates coordination among different departments and divisions of an organization. For any action to be taken for new or existing activities of an organization, there is a need for coordination. Such coordination is ensured by a control system in an organization.
6. Aid to Decentralization: Delegation of authority with an adequate level of responsibility is the need of the present management system. However, no management is comfortable in the delegation of authority without the confidence of a control system over employees’ work. Thus, control aids in effective decentralization in an organization.