Controlling --one of the managerial functions like planning, organizing, leading.

- -It is an important function because it helps check the errors and take the co rrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner. --a four-step process of establishing performance standards based on the firm s ob jectives, measuring and reporting actual performance, comparing the two, and tak ing corrective or preventive action as necessary. - -Control is a foreseeing action whereas earlier concept of control was used on ly when errors were detected. --Control in management means setting standards, measuring actual performance an d taking corrective action. CONTROLLER -- ensures the transparency of business results, finance, processes and strategy and thus contribute to higher economic effectiveness. -- -coordinate secondary goals and the related plans in a holistic way and organ ize a reporting-system which is future-oriented and covers the enterprise as a w hole. --moderate and design the controlling process of defining goals, planning and ma nagement control so that every decision maker can act in accordance with agreed objectives. --provide managers with all necessary company management data and information an d develop and maintain controlling system Control Process Establish standards to measure performance. Within an organization's overall strategic plan, managers define goals for organ izational departments in specific, operational terms that include standards of p erformance to compare with organizational activities. 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: Measurable or tangible - Those standards which can be measured and expressed are called as measurable standards. They can be in form of cost, output, expenditur e, time, profit, etc. Non-measurable or intangible - There are standards which cannot be measured mone tarily. For example- performance of a manager, deviation of workers, their attit udes towards a concern. Measurement of Actual Performance The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance le vels are sometimes easy to measure and sometimes difficult. Most organizations prepare formal reports of performance measurements that manag ers review regularly. These measurements should be related to the standards set in the first step of the control process. For example, if sales growth is a targ et, the organization should have a means of gathering and reporting sales data. Compare performance with the standards. This step compares actual activities to performance standards. When managers rea d computer reports or walk through their plants, they identify whether actual pe rformance meets, exceeds, or falls short of standards. Typically, performance reports simplify such comparison by placing the performan ce standards for the reporting period alongside the actual performance for the s ame period and by computing the variance that is, the difference between each actu al amount and the associated standard. Deviation can be defined as the gap between actual performance and the planned t argets. Extent of deviation means that the manager has to find out whether the d eviation is positive or negative or whether the actual performance is in conform ity with the planned performance. Once the deviation is identified, a manager has to think about various cause whi ch has led to deviation. The causes can beErroneous planning,

Co-ordination loosens, Implementation of plans is defective, and Supervision and communication is ineffective, etc. Take corrective actions When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them. In the productivity and quality-centered environment, workers and managers are o ften empowered to evaluate their own work. After the evaluator determines the ca use or causes of deviation, he or she can take the fourth step corrective action. There are two alternatives here Taking corrective measures for deviations which have occurred; and After taking the corrective measures, if the actual performance is not in confor mity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow up is an important step because it is only throu gh taking corrective measures, a manager can exercise controlling. Types of Controlling 1. Pre-action Control ? Sometimes called precontrols ? Control method ensuring that human, material, and financial resources ha ve been budgeted 2. Steering Control ? Called cybernetic or feedforward controls ? Control method designed to detect deviations from some standard goal and to permit corrective measures ? Are effective if manager only if the manager can obtain timely and accur ate information about changes in the environment ? Importance of Steering Controls ? Allows managers to take advantage of unexpected opportunities since devi ations from a standard or plan may take place in a positive direction . By becom ing aware of this deviation, managers can shift their organization s resources to areas where they will do the most good. 3. Screening Control ? Sometimes called Yes/no control or Go/no go control) ? Control method for screening procedures that must be followed or conditi ons that must be met before operations continue. ? They are usually most important and more widely used than other types of control 4. Post-Action Control ? Method of control for measuring the results of a completed activity ? Also used as a basis for rewarding or encouraging service employees ? THE IMPORTANCE OF CONTROLLING TO CREATE BETTER QUALITY ? Process flaws are spotted, and the process is corrected to drive out mis takes ? Employees are empowered to inspect and improve their own work. TO COPE WITH CHANGE ? The control function aids managers in responding to the resulting threat s and opportunities, by helping managers to changes that are affecting their or ganization s products and services TO CREATE FASTER CYCLES ? Steingraber projected that speed would be the standard of the 1990s. Tod ay s customers expect not only speed but customized products and services. TO ADD VALUE ? Japanese management expert Kenichi Ohmae said that an organization s main objective should be to add value to its product so customers will buy it in prefer ence. ? This added value takes the form of the above-average quality achieved th rough exacting control procedures. TO FACILITATE DELEGATION AND TEAMWORK

? The contemporary trend toward participative management also increases th e need to work together as teams. ? The control process then, lets the manager monitor employees progress wit hout hampering employees creativity or involvement in the work. CHARACTERISTICS OF CONTROLLING CONTROLLING IS AN END FUNCTION ? A function which comes once the performances are made in conformities wi th plans. ? During controlling, the managers monitors the implementation of the orga nization s plan and take corrective action if necessary to ensure that what was pl anned will be achieved. CONTROLLING IS A PERVASIVE FUNCTION ? Controlling is part of the management process which describes the functi ons of a manager ? Every manager in an organization has to perform the control function to ensure efficiency and effectiveness CONTROLLING IS FORWARD LOOKING ? Controlling always look to the future so that follow-up can be made when ever possible. ? A manager should evaluate whether the performance of its workers is enou gh to carry out their plan. CONTROLLING IS A DYNAMIC PROCESS ? Control is a continuous process, it follow a definite pattern and time-t able, month after month and year after year on a continuous basis. ? Controlling requires taking reviewable methods; so changes have to be ma de wherever possible. CONTROLLING IS RELATED WITH PLANNING ? Planning and Controlling are two inseparable functions of management. Wi thout planning, controlling is a meaningless exercise and without controlling, p lanning is useless.