Controlling Business studies Notes

 Controlling Notes

Meaning of controlling

Controlling is the primary managerial feature. It is the manner of making sure the real activities are restrained to planned pastimes. It is an important feature for all degrees of management. It guarantees the right things are finished in the right manner at right time. Each and each agency set the dreams. All sports are directed towards desires. Controlling is defined as a measurement of Actual overall performance and expected performance and taking corrective motion. Its purpose is to ensure that actual performance is constant with plans. In truth, control helps managers to display the effectiveness of their making plans, their organizing, and their directing activities.

Importance of controlling

1.     Execution of plans:
Manage allows in making sure the overall performance of plans via ordinary examination and assessment of the overall performance of labor that outcomes the overall performance of sports for the accomplishment of desires.

2.     Helps in supervision:
Control enables in lowering deviation between widespread performance and actual overall performance thru an effective control system set up by means of the supervisor

3.     Effective delegation and decentralization of authority :
Controlling is that mechanism that monitor authority issued that can help to delegate and decentralize the authority

4.     Reduction of cost–
 when control is effective employees will have better performance, proper utilization of resources, and prevention of leakage and wastage which helps in reduction of cost

5.     Psychological pressure controlling:
It influences the psychological strain of personnel. When the person knows that their performance and activities finished will be evaluated and just then they obviously paintings hard and their overall performance may be improved.

6.     Optimum utilization of resources:
 Controlling plays a vital role in the proper utilization of human, physical, and financial resources to ensure correct work performance with respect to cost, quality and time or not.

7.     Helps in fulfillment of goals
 Control provides a standard for approval of actual performance it helps to accomplish the plan and achieve goals.

8.     Helps in coordination
An organization grows in size and diversity. They become complex and also have to develop various departments and units. Therefore, controlling help to establish coordination in different department and units.

Process of controlling

1.     Establishing or setting standards::
The first step of control is to set the standard against which results can be measured. For setting standards, targeted results must be identified and it should be quantitative as far as possible. The quantitative term can make controlling effectively. Standards are expressed in a general terms as
a.       Cost should be reduced
b.      Orders should be executed
c.       Overhead must be reduced
d.      All orders must be executed in 2 days or so on.

Standards can be expressed in qualitative as well as qualitative terms. The quantitative are bodily fashionable, fee and sales standards, capital requirements, and so forth. The qualitative standards are related to personnel morale, motivation, family members between advanced and subordinates and public, and so on. Quantitative well-known ought to be bendy.

2.     Measuring actual performance:
 In this step, the real overall performance of personnel, organization or devices is degree. A supervisor should look at actual overall performance on the premise of given popular which identification precise set of labor assigned to specific employees specific techniques can be used to measure the real overall performance. The inconvenience of the manager, he develops a higher facts device to measure the real overall performance. The actual overall performance dimension gadget should be a regular and consistent basis in order that it can provide dependable and everyday feedback to the management.

3.     Comparing actual performance with standard:
After measuring actual performance, those outcomes must be as compared with the trendy set inside the first step to understand if the exp effects are finished or now not. For that, desirable sys of contrast among performance and general must be maintained. These contrasts need to display it the actual performance is the same, decrease, or is better than that of predetermined standards. If decrease standards are finished the supervisor should find out the deviation and take corrective action.

4.     Taking corrective actions:
 after comparing actual performance with the standard, if any deviation is detected, and then corrective actions should be taken and initiated. If performance does not meet the standard, it is the duty of the manager to take corrective action and further help the organization to overcome any difficulty. The corrective action may be related to
a.       Revision of standards if they seem to be unattainable
b.      Revision of strategies, policies, and procedures
c.       Additional employees training
d.      Greater motivation
e.      Change in the existing technique of direction
f.        Product design improvement

Essentials of effective control

1.     Suitability:
 the control system should be appropriate to the nature and needs of various activities to serve the specific area or department of the organization

2.     Timely and forward-looking:
the control system in the management of the organization should be used to evaluate the deviations timely and take corrective measures in time.

3.     Simplicity
  the effective control system should be very simple and easy to understand by the concerned manager and subordinates.

4.     Economy
the controlling system should be very economic and less costly. The benefits should be more than that of actual expenses related to the common goal

5.     Objectives
 the control system should be objective in order to specify the expected result indefinite terms in terms of personal likes and dislikes of manager, subordinates and other information users etc.

6.     Flexibility
 every organization operates business in a dynamic environment. The controlling system should ne flexible so that it could be adjusted in every environment

7.     Focus on strategic plans
the controlling system should focus on critical areas where deviations from standards are most likely to occur and cause loss and damage. So controlling system should concentrate on those areas where corrective action can be applied effectively

8.     Coordinates with organizational workflow–
the information to be used for the control must be coordinated with the organizational workflow for two main reasons:
a.       Each step in the workflow may affect the entire authority
b.      Control information must reach everyone who needs it.

9.     Prescriptive and operational :
control systems should be prescriptive and operational. And if it does not prescribe remedies and help for smooth operation, it is not useful.