CONTROLLING AS A PILLAR OF MANAGEMENT
Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.
According to Brech, controlling is a systematic exercise which is called as a process of checking actual performance against standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution on to
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After three months, if profit has increased by 3 percent, management might assume that plans are going according to schedule.
The Controlling Process
The controlling process involves carefully collecting information about a system, process, person or group of people in order to make necessary decisions about each. Managers must set up control systems which consist of five key steps highlighted as follows:
STEP 1: Establish standards to measure performance
Within the firm’s overall strategic plan, managers define goals for the firm’s departments in specific, operational terms that include standards of performance to compare with organizational activities. Typically performance reports simplify such comparison by placing the performances for the same period and by computing the variance, that is, the difference between each actual amount and the associated standard.
STEP 2: Measure actual performance
Companies should prepare formal reports of performance measurements that managers 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 target, the organization should have a means of gathering and reporting sales date.
STEP 3: Compare performance with standards
At this step actual activities are compared to performance standards. When managers read computer reports or walk through
In controlling the financial manager makes sure that each department of the health agency is following the plans that have been put together. One way to do this is to study current records and compare them with reports from an earlier day and time. By comparing it’s often shows where you 're going to see the areas that need attention. The manager uses feedback to discover the areas that are not as effective. The purpose of controlling is to ensure that the original plans are being followed.
The Performance Measurement is a way to either measure or give a understandable value to what has been done compared to what was supposed to be done. It applies to all aspects in the working environment, such as procedures, critical activities and processes. In other words, first you set pre-defined goals and give away tasks and responsibilities to other workers, then at the deadline you can compare the achieved results to what the original goal was at the beginning. It is also useful to evaluate not only the final result, but even all the actions taken to get that particular results and the way the actions have been taken as well.
Conclusion: As such, the MCS should have been initially detailed using this reverse order for consistent presentation as well as acting as a catalyst to the planning subsystem of the core control system. In doing so, goals can be set in accordance to the company culture and structure. This enables management to influence the behaviour of more employees by providing clear goals. This makes for a better feedback system because it includes the information of the various departments/divisions and all levels of employment. This allows for attainable goals and prevents the imposition of unrealistic goals, MBO, and the likelihood of fraudulent reporting. To further prevent fraudulent reporting, the measurement subsystem should rely equally on the accounting system as well as non-financial measures (balanced score card).
The second aspect of management used to investigate the issue is Controlling. Control is a concern that is facing every manager in every organisation today. Many businesses continually look to improve relationships between all levels of staff in order for a healthy working environment. To effectively control a business the organisation requires information about
Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can
Management must ensure control over each objective by maintaining and ensuring that performance does not veer away from standard. “Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary” (Web Books Publishing, 2010, para. 17). Performance measurement can be done in several different ways. There may be the use of financial statements, performance appraisals, customer satisfaction reports, or sales and production results. Two control techniques also
Management Controls are used to put procedures and policies into place that would allow an organization to be able to function in a secure manner from all of its levels, to include the ground floor to the top floor.
Effective controlling is the process of monitoring performance and taking action to ensure desired results. Controlling ensures that the overall directions of individuals and groups are consistent with short and long range plans. With high percentile power thinking style I am not very effective in controlling. I plan to use some of the suggestions in the LSI survey to become less power oriented so I can be effective.
In this process, the activities performed are evaluated to determine if the corporation’s goals are being achieved by the strategies that are chosen. If the results are not satisfactory compared to pre-defined standards, management must take correctives actions to adjust the issues. This strategy stimulates the ongoing process of improving performances within the corporation. Since the environment is constantly changing, it is
Finally, controlling involves solving performance problems and streamlining employee productivity as well as controlling costs and taking preventative measures when necessary. This is an area Brian’s limiting style of approval could be a problem. The area of controlling is often not popular and involves some confrontation and situations where employees and colleagues will disagree. While controlling does tap into Brian’s strengths in achievement and perfectionistic styles, it will require
Controlling is monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary. With all these four functions that are involved in the process of management, if all are followed correctly the organization will be properly ran and will have few complications.
Controlling – What I think is controlling can be all about controlling quality of project, controlling the cost or cash flow, and controlling wastage of resources.
For managers to be successful they have to be able to plan accordingly. Any good manager can understand the importance of planning, because it is one of the most basic functions of managerial skills. A goal has to be established and strategies have to be conveyed to the subordinates. For example, If I’m a manager I will engage
3. Decision-making. The process of control is complete when corrective actions are taken. This involves making right decisions as to what types of follow up actions are to be taken. This will lead to accomplishment of organisation objectives. According to W.T. Ierome, "Control is needed both to simplify the making of subsequent decisions and to ensure the realisation of the objectives implicit in the original long-range policy decisions" .
o Performance evaluations are formal review processes designed to encourage the informal day-to-day practice of performance management, while providing a framework in support of merit pay adjustments, promotion and employment decisions. Evaluating staff performance and helping employees develop their skills are important duties associated with performance management. Performance management begins with supervisors and employees collaboratively setting goals and standards, clearly communicating performance expectations and evaluating the results during the performance evaluation process.