Controlling is very important in any business because it will help you to define your operations effectively and profitably. So, every business should understand the elements of the control process in management.
The following elements of the Process of Control in Management must be considered while adopting the system of effective control in a business and industrial Enterprise.
What are the Elements of the Controlling Process in Management?
The following are the important elements of the controlling process in management:
1. Determination of Objects and Targets
The very first essential element of the process of control is the determination of the objects and targets of the enterprise these objects must be clearly defined and explained these purposes must be determined considering all aspects of an enterprise
2. Determinations of Important Centers for Control
In every business and industrial enterprise, There are some points at which the possibility, of variance, is more.
These points must be duly recognized and established.
Once these centers are established great emphasis is laid down on these centers.
It minimizes the possibility of variances.
3. Establishment of Responsibility Centers
Determination and establishment of responsibility centers are very necessary for enterprises for the stress establishment of an effective system of control.
Under the system of such centers, The person liable for the mistake and variance is questioned.
4. Establishment of Checking Procedure
An Important Essential element of the controlling process is that the checking procedure must be determined well in advance.
It must be clearly defined so that every activity of the enterprise may be easily and thoroughly checked with the pre-determined standard and the time, money, and energy spent on checking to be saved.
5. Establishment of Standards
The establishment of standards is perhaps the most important essential element of the process of controlling.
The standards must be established in the enterprise so that the pre-determined standards may become the best for checking and evolution of the activities of the Enterprise.
6. To Make the Organization Sound
Any system of control in an enterprise can be effective only if the organization is made sound.
If the organizational structure of the enterprise is weak an effective system of control cannot be established in the enterprise.
Therefore, the Organizational Structure of the enterprise must be sound.
7. System of Control in Accordance with the Organizational Structure
The system of control must be developed keeping this in view.
The needs and requirements of the organizational structure of the Enterprise.
8. To Record Actual Performance
It is necessary to have a proper record of actual performance for its evolution.
Record of performance can be possible through Lab reports, labor reports, Sales analysis, variance analysis, Ratio analysis actual cost reports, material consumption reports, and others.
9. Comparison of Actual Performance with Standards
Actual performance of the enterprises compared with the pre-determined standards and variance as calculated.
The system of control must be very much specific and right clear
It must be easy to understand so that it may easily to understood and followed by the concert workers and employees of the organization.
11. Remedial Measures
If any on-floor favorable variance is located all the best efforts are made to correct it so that performance may be improved.
Similarly, favorable variances are maintained.
12. Determination of Period
It is very important to determine the period of control well in advance.
The period of checking must not be very long.
The success of the system of control depends upon the fact that it should not be very expensive.
It must be prepared to keep in view the budget allocation of the Enterprise to make it economical.
The system of control must be flexible so that necessary changes may be made in it according to the circumstances or as and when required.
The process of control must go on continuously.
It must be adopted as a continuous process and not as a specific one only.