What is Control Process?

According to Terry and Franklin : Controlling is determining what is being accomplished I.e evaluating performance and, if necessary , applying corrective measures so that the performance takes place according to plans

Control Involves
Ensures adjustment or conformity to OBJECTIVES.

Ensures adjustment or conformity to SPECIFICATIONS

Control
Regulates ACTIVITIES

Regulates BEHAVIOUR

Control and Other Functions of Management.

The managerial function of Control comes at the end of the chain of the other major functions of planning , organizing and leading . Effect of prior functions lead to the effectiveness of Controlling.

Control Feedback Loop

Control Organizing

FEEDBACK

CHANGES IN

Planning

Control Feedback Loop

Control acts as a feedback loop into planning and organizing, That can help managers adapt to changing circumstances and conditions. When either the internal or external organizational environment changes ,good control systems let managers know if the current ways of operating are still meeting the organizational objectives.

Steps in the Control Process

Establish Standards
Specification of what management expects is critical.All the important aspects should be considered. The highest level should be able to articulate a vision and form broad strategic goals. The establishment of standards require as much specificity as possible. Also participative management should be kept in mind.

Issues in Establishing Standards

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Measure Performance

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Performa nce Measure ment

All necessary aspects of performance Should be considered.

Companies such as Kodak, Motorola , GE utilize the comprehensive control Mechanism called STAGE-GATE, Through out the life of the project. Each project is divided into several STAGES with GATES between them.

Compare performance against Standards.

Degree of Variation between the Actual Performance and Standards set.

Defining acceptable Range of Variations

Importance and Magnitude of deviation needs to be judged.
Acceptabl e Upper limit Standard Acceptabl e Lower limit Acceptab le Range Of Variation

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Management By Exception
When the deviations are analyzed only those major or exceptional, significant deviations should be communicated to the Top Management.

Managerial Judgment is the core issue. Judgment is required to analyze the significance of the deviations.

Evaluate Results and Take actions.

Actual Performance better than expected

Reinforcing action taken

(e.g. Increase rewards, Consider increase in production, add new product line.

Actual Performance measured against std.for performance

Gap Detecte d

Corrective Action Taken.

(e.g. Increase Training, Modify Supervision, invest in newer equipment)

Actual Performance worse than expected

e.g Baby Food , Florida

Corrective Action

Corrective Action can be IMMEDIATE or BASIC.

Immediate Action: Corrects something right now, but gets things back on the track. Basic Action: Is concerned with permanent solution to the problem of Serious deviations.

Control Responsibilities differ according to Managerial Level

Strategic Controls
Involves monitoring critical environmental factors that could affect the viability of strategic plans, Assessing the effects of organizational strategic actions, and ensuring that strategic plans are implemented as intended.

Tactical Controls
Focuses on assessing the implementation of tactical plans at departmental levels, Monitoring associated periodic results, and taking corrective action as necessary

Operational Control
Involves overseeing the implementation of operating plans monitoring day-to-day results and taking corrective actions when required.

Forms of Operations Control

Forms of Operational Control.

Pre-Control Of Operations: Controls the quality , quantity and other characteristics of the inputs to the process. Screening Controls: Evaluates the conversion process as it occurs.e.g Telle caller. Post control Of Operations: Focus is on the quality of the output.

Types Of Control
Feed forward/Concurrent/Feedback Control

Input

Processe s
Concurrent Control

Output

Feed forward Control

Feedback Control

Anticipates Problems

Corrects Problems as they Happen

Corrects Problems after they Occur

e.g . McDonald's e.g

Characteristics of Effective Control

Integration with Planning
the more control is linked to planning, the more effective the control system.

Flexibility
the control system must be flexible enough to accommodate change.

Forward looking
Though many of the controls are instantaneous , they must focus attention on how future actions can be conformed to the plans.

Characteristics of Effective Control (contd)

Timeliness
A control system should provide information as often as necessary.Updated data.

Objectivity
A control system must be free from bias and distortion.

Resistance to Control
Over control
Trying to control too many details becomes problematic when control affects employee behavior and employees perceive control attempts as unreasonable. Curb on creativity and Innovation.Creativity and innovation can only be exploited if the environment is conducive.Only if it is free from control and regulations.

Resistance to Control (contd)

Rewards for Inefficiency
Rewarding operational inefficiency can lead employees to behave in ways that are not in the best interests of the organization.

Too much accountability

Efficient controls are resisted by poorly performing employees.

Overcoming Resistance to Control

Resistance to control can be overcome by:
Designing effective controls that are properly integrated with organizational planning and aligned with organizational goals and standards. Creating controls that are flexible, accurate, timely, and objective. Avoiding overcontrol in the implementation of controls. Guarding against creating controls that reward inefficiencies.

Overcoming Resistance to Control (contd)

Resistance to control can be overcome by (contd):
Encouraging employee participation in the planning and implementing of control systems. Developing a system of checks and balances in the control systems through the use of multiple standards and information systems that allow the organization to verify the accuracy of performance indicators.