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ClraPter 9

Controlling
The

brg * term

existence of many companies, rnost often, is placed in ieopardy when some

aspects or their adivities go out control. consHer the following examples;

Z.

A news report indicated that Ure fire whicfr destroyed the Hp800 million Superferry 7
1orury ship on March 26, lggT was caused by illegal @nnections made on its eledical
ryrdr. If this ls true, the losses ould be a$rlhlted lo inadequate rnanagsnent contrcl.
flte fagedy B13t happeried * the Ozone Disco in March 18, 1996 &arty nnnifeded

3.

of control over the day-to-day operations sf the firm. Even the faiiure to deted earlier

1.

4.

managernent's lack

the violations in the Builtting Code spells lack of effectivc govcrnmcnt cnntrol'
The managefflent of a tehptrone csnpany could *ot stCIp tte unauttprized tEe in lin6
asslqrpd to nuny of its su'nsoiUers Coetrrmers becsne angry wtren ttrey are bilkd for
calls theY never made'

The examples presented constitute a very small Prcentage of unwanted occurences that
property,
happen etery day in Bre hsiness **td. Apart from tlre distradiffi of llves and
and the
in
employrn6t
dtscoflilnuttles
no.nuf Ut siness operatto{ls are hampered causlng
pmvisions of products and servke. These could not have happened only adequate controb
were lns0tuted.
WHAT IS

COI{TROTLING?

-I

Controllirg refers to the "process of asertainirp whether organizational objectircs harae been

aAieved;-lf noq vrhy noi; and deEnnlnlng what actlvltis shouH then be bken to adlleve
objectives bettEr in the future.'Controlling compleEs the cyde of management furctions.
OdieCives and goab that are set at the planirg stagE are tified as to adtievement or
dptettcr, at any gtven polrt in the rgar{nrg an<t knplenrentir}g stages. Wt}en expctatlons
are not met at scfitlruled dates, corrective measures are usually undertaken.

IMPORTAi{CE OF COI{TROLU'{G
Wt|efl codrolling ie properly implernented, it will help the organiza$on achieved its goal
most efficient ard effective manner pcsible.

Deviatio1, mlstakes,

ope.am[,

aM shortcomirp

trc

ln dally
prodtrcing
such negative

happen inevitably. When ttrey ocanr

ttref, crintriUle to unnecersary expeditures which increase the cost

goods anO servi(rs. Proper cofltrol measures minimize the ill etrects of
|aurrences. An efective inventory control system, for instance, rninimize

if not totally

eliminates losses in invenbory.

The importance of controllarg maybe illusfated as it is applied rn a ty[*al factory. lf the


required standad daily output for individr.ral works is 100 pieces, all workers who do not
prcduce the requlrement are g{trn suffldent tlme to improve; if no improvements are forth
mnring, they are asked to resign. This actirn will help the ao{npany kep its otrer head and
ottrer coets at e)Aefted lerds. If m stxtr cmsol ls madn, thc comparry wlll be faced wlth
escalating production e6ts, $rhin wifi phce fte dabllity of the firm in Jeopady.

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