What is Controlling?
Controlling is regarded as one of the most important management functions. In fact, without the presence of a control function, the entire management function will become obsolete. The management will not be able to determine if the plan is working properly or not, or if it is properly implemented or not.
The main objective of the control process is to make sure that the activities within an organisation are going as per the planning. Control process helps the managers in determining the level of performance of their respective organisations.
Steps involved in Control Process
The following are the steps involved in the control process:
1. Establishing standards and methods or ways to measure performance
2. Measuring actual performance
3. Determining if the performance matches with the standard
4. Taking corrective action and re-evaluating the standard
Let us go ahead and discuss the above mentioned steps in detail.
Establishing performance standards: Although setting of goals and standards are part of the planning process, it also plays an important role in controlling.
The main objective of controlling is to guide the business towards the desired target. Therefore, if the employees or members of a business are well aware of the target, it will result in more awareness about the target.
The managers must communicate the goals and objectives clearly to the employees without any ambiguities. An organisation in which everyone is working towards a common objective has a better chance to grow and prosper.
Measuring actual performance against the set standards : The immediate action that managers need to take after being made aware of the goals, is to measure their actual performance and compare that with the standards already set. This helps in identifying if the plan is actually working as was thought to be.
Once a plan is implemented, the task of managers is to monitor the plans and evaluate. Managers must be ready with an alternative plan or suggest corrective measures in case the plan is not going as was intended.
This can be done only when managers are measuring their actual performance. The way performance can be evaluated is to measure it in monetary terms, hiring financial experts.
This step of controlling is helpful in detecting future problems and issues and is essential for taking decisions immediately so that the company is able to recover from the losses.
Determining if the performance matches with the standard: Checking if the performance matches with the standards is very important. It is an important step in controlling. In this step, the results are measured with the already set standards.
Taking corrective action and re-evaluating the standard: Corrective measures need to be taken when there is a discrepancy. Correct actions provide protection against loss and stop them from reappearing in future.
This was all about the topic of Steps in Control Process, which is an important topic of Business Studies for Commerce students. For more such interesting articles, stay tuned to BYJU’S.