The system and

process of
controlling
By shikha chauhan
The main object of control is to bring to
light the variations between the standards
set and performance and then to take
necessary steps to prevent the occurrence
of such variations in future.

It is the process through which managers

assure that actual activities conform to
planned activities.
According to Harold Koontz,
Controlling is the measurement and correction
of performance in order to make sure that
enterprise objectives and the plans devised to
attain them are accomplished.

According to , E.F.L. Berch,

Control is checking current performance against
pre-determined standards contained in the
plans, with a view to ensure adequate progress
and satisfactory performance.
• Taking corrective action 3.
• Measuring and comparing actual 2.
results against standards.
• Establishing standards 1.
Steps in a control process
Step 1: Establishing Standards
 Step 1: Establishing standards:

Some key areas in all business organization are:

Public
profitability
key areas responsibility

Market
position Employee
attitudes

Personnel
productivity development

The standards the managers desire to obtain in each key area

should be defined as far as possible in quantitative terms .
 Types of standards:

Working
Physical stds
practice stds

Cost stds Intangible stds

Revenue stds Capital stds

•Physical standards: labor hours per unit of
output, units of production per machine hour,
and so on.

•Cost standards : direct n indirect cost per unit

produced, material cost per unit.

•Revenue standards : average sale per customer,

sales per capita in a given market area.
•Capital standards: rate of return on capital
invested.

•Intangible standards: competence of managers

and employees, success of public relation
programme.

•Working practice: such as shadow tool boards on

which a shadow of each tool is painted to denote to
the worker a clear standard for every tool to be
hung in a certain place. A vacant place on these
boards immediately warns the worker about the
breach.
Step 2: Measuring and comparing
actual results against standards

The second step in the control process is to measure

the performance and compare it with the
predetermined standards.
Measurement and
comparison are to be
done at various
stages or at the
end??????
Step 3: Taking corrective action

The corrective action should be taken

without wasting time so that the normal
position can be restored.
What are the causes for
deviation????????????????
Causes:
 Inadequate and poor equipment and
machinery.

 Inadequate communication system.

Lack of motivation

Defective system of training and selection of

personnel.

Defective system of remuneration, etc.

 Need for control
Control is needed for three purposes:

To measure progress

To uncover deviations

To indicate corrective action