Control is necessary to function to make all other managerial functions effective and such that the corporate goals are achieved effectively and efficiently. So, every businessman should understand the importance of a control process for his firm.
Controlling will help you to understand your ongoing operations and how to execute them effectively.
What are the Steps in Controlling Process in Management
There are six major steps to learn control process in business:
1. Establishment of Standards
The first step in the process is the setting up of control standards. Standards represent the criteria for judging or evaluating actual results.
Every objective, 1. plan, 2. program, 3. policy, budget, and procedure become a standard against which actual or expected performance could be measured.
Thus, control standards may be of the following kinds: quantitative-set in physical or monetary terms, such as cost standards, revenue standards, and quantitative- where it is not possible to be standards in quantitative.
So possible standards should be stated in quantitative terms.
There are some elements that affect the control process.
2. Measurement of Performance
After the standards are established, the next step is the measurement of actual performance.
Measurement of performance should be accurate, reliable, clear simple, and objective.
So, The actual performance is to be measured in units similar to those in which the standard is expressed. But where the standards are intangible.
The actual performance may be measured in terms of costs, profits, time, and others.
Thus, in some cases, Control Process techniques like personnel observation, opinion surveys, and other qualitative terms may be used to measure performance. It is better to measure the performance during the course of operations so that it may be known the standards are being met.
Example – Each part should be properly checked at the time of assembling the product. Control of the performance of the personnel manager is not easy because of the lack of Definite standards.
Thus, in such cases, indirect methods may be adapted to measure the performance, for example, members of strikes, etc.
An entrepreneur can do ideal control with effective communications in business.
3. Comparing Actual Performance with the Standards
Once the actual performance is measured, it is to be compared with the standards. Such a comparison will reveal the differences or deviations between actual and desired results.
Minor or irrelevant deviations may be ignored, and significant deviations must be carefully attended to. Determining the actual significance of any deviations is the important responsibility of the manager.
So, it is better for the manager to fix up the range of the tolerance limit within which normal or acceptable performance should lie.
A comparison of performance is easy in the case where quantitative standards have been set.
Also, good leadership skills will increase your effective control process in management.
Thus, In other cases where results are intangible, direct personal observation and reports may be used to identify defects or deficiencies in performance.
4. Analysis of Deviations
After the significant deviations have been identified, the manager should determine the reasons for such deviations.
There may be several reasons for the deviations.
Such as an error in the plan, effective structure, or error in the implementation of plans and defects in business operations.
The deviation may be of a temporary or permanent nature, or of increasing or dimension nature.
The deviation may be reported to the authority concerned for taking proper action.
5. Taking Corrective Action
When the distance between the standards and the actual performance has been identified and analyzed.
The next important step is to main take necessary corrective action.
The control process is said to be complete when corrective action is taken.
All most The corrective action essentially involves either correcting favorable deviations or altering future performance criteria.
In other words, corrective action includes corrective as well as preventive control measures such as follows:
- Revisions of standards like replanning or resetting objectives or targets.
- Reallocation or reclassification of tasks or duties.
- Changing the organization structure.
- Improving the current technique or Technology.
- Providing positive motivation and incentives.
- Training of the employees.
- Streamlining the exciting information flow. Improving the current leadership style.
Performance information that flows back to managers is known as feedback.
The tire object of any control system is to provide the required information through the process of feedback. So that future divisions can be corrected.
For this purpose, the information gathered through observation, reporting, or inspection of ongoing operations has to be analyzed and reviewed.
Thus, the more prompt such reviews and feedback are, the more effective will be controlling.
Powerful planning in the feedback step is helpful for gettings good reviews.
Sometimes, a forward-looking control can even predict the probable divisions well in advance and therefore preventive measures can be taken without waiting for the actual negative we went to occur.