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Ajith kumar R O

PGT Commerce

JNV Mandya

Karnataka.

What is Controlling ?

Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions

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Definition……………….

According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

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Importance…………….

• Accomplishing organisational goals
• Judging accuracy of standards
• Making efficient use of resources
• Improving employee motivation
• Ensuring order and discipline
• Facilitating co-ordination in action

• Setting performance standards

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• Measurement of actual performance

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• Comparison of Actual performance with standard

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• Analysing Deviation

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• Taking corrective actions

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�Establishing Standards�

Standards are yardsticks against which actual results are measured and efficiency is determined. Standards are plans which tell us where we should be. Standards may be physical, financial, qualitative or tangible. Standards are usually stated in specific terms but they may also be intangible like the degree of morale goodwill market image and public opinion and attitude.

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�Measuring Performance�

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Standards are established to measure actual performance. By measuring actual performance against standards we come to know where we are as against we were supposed to be if the standards are objective measurement is objective.

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�Comparison of actual performance with standard�

Such comparison will reveal the deviation between actual and standard results. Comparison will becomes easier when standards are set in quantitative items.

�Analysing Deviation�

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The negative difference between where we should have been and where we actually are is controlled. Deviation is corrected controls should facilitate corrective actions.

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Taking Corrective Action

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Corrective actions will be taken by the management when the deviations go beyond the acceptable range, especially in the important areas.

�Taking corrective action�

Limitations of Controlling

• Difficulty in setting quantitative standards
• Little control on external factors
• Resistance from employees
• Costly affairs

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