UNIT 5

CONTROLLING
CONTROLLING
The measurement and correction of
performance in order to make sure that
enterprise objectives and the plans devised to
attain them are being accomplished.

THE BASIC CONTROL PROCESS

Establishment of standards standards are
simply criteria of performance. They are the
selected points in an entire planning
programme at which measurement of
performance are made so that mangers can
receive signals about how things are going and
thus do not have to watch every step in
execution of a plan.
MEASUREMENT OF PERFORMANCE The
measurement of performance against
standards should ideally be done on a forward
looking basis to that deviations may be
detected in advance of their occurrence and
avoided by appropriate actions.
CORRECTION OF DEVIATIONS correction of
deviations is the point at which control can be
seen as a part of the whole system of
management and can be related to the other
managerial functions. Managers may correct
deviations by rewarding their plans or by
modifying their goals.

IMPORTANCE OF CONTROLLING
Adjustments in operations.
Objectives bases for control.
 Adjustments done through control.
Policy verification.
Managerial responsibility.
Psychological pressure.
Coordination in action.
Organizational efficiency and effectiveness.

CONTROL ON OVERALL PERFORMANCE

There are many reasons for control on overall
performance. In the first place just as overall
planning must apply to enterprise or major
division goals, so must overall control be
applies.
In the second place decentralization of
authority especially in product or territorial
divisions create semi independent units, and
these must be subjected to overall control to
avoid the chaos of complete independence.
In the third place overall control permits the
measurement of integrated area managers
total effort, rather than parts of it.

CONTROL THROUGH RETURN ON

INVESTMENT
RETURN ON INVESTMENT measures both
the absolute and the relative success of a
company or company unit by the ratio of
earnings to investments of capital.

STEPS OR PROCESS OF CONTROLLING

 Establishments of control standards goals,
objectives, targets to be achieved-
satisfactory or unsatisfactory.
Measuring actual performance quantitative
and qualitative. (personal observations,
statistical observations, oral reports, and
written reports)
Comparing actual performance against a
standard.
Taking managerial actions to correct
deviations or inadequate standards.

BUREAUCRATIC CONTROL
It is characterized by the wide use of
rules, regulations, policies, procedures,
and formal authority.
CLAN CONTROL
Is based on norms, shared values,
expected behaviour, and other cultural
variables.