CHAPTER I

INTRODUCTION

1. Background
The organization and coordination of the activities of a business in order to achieve
defined objectives. Management is often included as a factor of production along with
machines, materials, and money. According to the management guru Peter Drucker (1909-
2005), the basic task of management includes both marketing and innovation. Practice of
modern management originates from the 16th century study of low-efficiency and failures
of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535).

Control, or controlling, is one of the managerial functions like planning, organizing,

staffing and directing. It is an important function because it helps to check the errors and to
take the corrective action so that deviation from standards are minimized and stated goals
of the organization are achieved in a desired manner. According to modern concepts,
control is a foreseeing action whereas earlier concept of control was used only when errors
were detected. Control in management means setting standards, measuring actual
performance and taking corrective action.

2. The Problem
What is controlling in more complex explanation ?

3. Purpose
The purpose of this paper is for understanding about controlling

4. The Benefit
We can know how to control people in management system
 CHAPTER II
CONTENTS

1. Controlling Definition
Management control can be defined as a systematic effort by business management
to compare performance to predetermined standards, plans, or objectives in order to
determine whether performance is in line with these standards and presumably in order to
take any remedial action required to see that human and other corporate resources are
being used in the most effective and efficient way possible in achieving corporate objectives.
Is one of the managerial functions like planning, organizing, staffing and directing.
Controlling is a process of monitoring performance and taking action to ensure desired
result. It sees to it that the right things happen, in the right ways, and at the right time. If it
reviewed from process, so that process is process to ensure the whole activity that has been
planed and do can work as its hope. Controling is manager action to valueing and manage
an activity for achiving goals.

Controlling characteristic
- Control is continuous process
- Control is management process
- Control is embedded in each level of orgazitional hierarchy
- Control is forward looking
- Control is closely linked with planning
- Control is atool for achieving organization

Controlling objective
- To maximize the use of scare resources
- To achive purposeful behavior of organization members
- Improves efficiency and effectiveness
- Make paln effective
2. The Importance Of Controlling
Controlling is an important function of management. Its importance becomes
apparent when we find that it is needed in all the functions of management. Controlling
checks mistakes and tells us how new challenges can be met or faced. The success of the
organisation thus hinges on the effective controlling.

Controlling is the last function of the management process which is performed after
planning, organising, staffing and directing. On the other hand, management control means
the process to be adopted in order to complete the function of controlling. The following
steps are included in it: Setting performance standards, Measurement of actual
performance, Comparison of actual performance with standards, Analysis deviations, and
Taking corrective action.

The importance of controlling becomes clear from the following facts:

a. Helps in achieving organisational goals:

When the plans are made in the organisation these are directed towards achievement
of organisational goal and the controlling function ensures that all the activities in the
organisation take place according to plan and if there is any deviation, timely action is taken
to bring back the activities on the path of planning.

b. Judging accuracy of standards:

Through strategic controlling we can easily judge whether the standard or target set
are accurate or not. An accurate control system revises standards from time to time to
match them with environmental changes.

c. Making efficient use of Resources:

Like traffic signal control guides the organisation and keeps it on the right track.
Each activity is performed according to predetermined standards. As a result there is most
and effective use of resources.

d. Improving employee motivation:

An effective control system communicates the goals and standards of appraisal for
employees to subordinates well in advance. A good control system also guides employees to
come out from their problems. This free communication and care motivate the employees to
give better performance.

e. Ensures order and discipline:

Control creates an atmosphere of order and discipline in the organisation. Effective
controlling system keeps the subordinates under check and makes sure they perform their
functions efficiently. Sharp control can have a check over dishonesty and fraud of
employees. Strict control monitor, employees work on computer monitor which brings more
order and discipline in work environment.

f. Facilitate coordination in action:

Control helps to maintain equilibrium between means and ends. Controlling makes
sure that proper direction is taken and that various factors are maintained properly. All the
departments are controlled according to predetermined standards which are well
coordinated with one another. Control provides unity of direction.

g. Controlling helps in improving the performance of the employees:

Controlling insists on continuous check on the employees and control helps in
creating an atmosphere of order and discipline. Under controlling function it is made sure
that employees are aware of their duties and responsibilities very clearly. They must know
clearly the standards against which their performance will be judged. These standards help
the employees to work efficiently.

Control can be exercised on employees performance through following measures:

(1) Self-appraisal report:

The employees are asked to prepare a report of their performance and to explain
whether their performance is in accordance with plan or not. In this report
employees specify their achievements.

(2) Performance appraisal report by supervisors:

The superiors continuously monitor and observe the employees when they are
performing the job and comparison between the standard and actual performance is
done. On the basis of this observation the managers prepare performance appraisal
report. These reports become the base for giving promotions, increments, bonus etc.
to the employees. To have good report the employees perform efficiently and
effectively.

h. Controlling helps in minimising the errors:

Small errors or small mistakes may not seriously affect the organisation. But if these
errors are repeated again and again it will become a serious matter and can bring disaster
for the organisation.

An effective controlling system helps in minimising the errors by continuous

monitoring and check. The managers try to detect the error on time and take remedial steps
to minimise the effect of error.
3. Kind Of Controlling
1. Preventive Controls
Preventive control means to prevent mistakes from happening. This control designed
to prevent all mistakes that undesirable before its happened. Preventive control will
effectively work if the function of every sectors do their jobs well. The example of preventive
controls are honesty, competent employee, explain the job description or every sectors
function, etc. As we know its better prevent than fix the problem. Because of that
preventive control cheaper than any management controls. But preventive control cannot
prevent all the problems from happening.

2. Detective Controls
Detective control is the control that will fix the problem after happening. For
example is the banks reconciliation. It is usually more expensive than preventive control
because the problem is already happened. But this control is needed for some reasons, the
reasons are :

Detective controls will measure the effectiveness of preventive control

Not every problems can be predicted and prevent them from happening.
3. Corrective Controls
Corrective control is doing the correction of the problems that identified by detective
control. The purpose is to prevent those problems from happening in the other day. In a
company usually the man who report this control is from auditor sector.

4. Directive Controls
Directive Control is a control that controlled directly while the event is ongoing. The
purpose is to keep the event s policy so the objective of the event will reached. The
example of directive control is the supervision of foreman in the building area.

5. Compensating Controls
Compensating control is to substantiate all controls. This control example is the
owners control of his a small company. The controls covered all things that happened in the
small company.This control exist because usually there is no control management in small
company.
 CHAPTER III
CLOSING

1. Conclusion
From all the materi we give, we can get conclusion about Controling is manager
action to valueing and manage an activity for achiving goals. Controlling is an important
function of management. Its importance becomes apparent when we find that it is needed in
all the functions of management. Controlling checks mistakes and tells us how new
challenges can be met or faced. The success of the organisation thus hinges on the effective
controlling. There are five kinds of controling, Preventive Controls, Detective Controls,
Corrective Controls, Directive Controls, Compensating Controls.
 REFERENCES

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