Process of Controlling
Control process involves the following steps as shown in the figure:
1. Establishing standards: This means setting up of the target which needs to be achieved to meet organisational goals eventually. Standards indicate the criteria of performance.
Control standards are categorized as quantitative and qualitative standards. Quantitative standards are expressed in terms of money. Qualitative standards, on the other hand, includes intangible items.
2. Measurement of actual performance: The actual performance of the employee is measured against the target. With the increasing levels of management, the measurement of performance becomes difficult.
3. Comparison of actual performance with the standard: This compares the degree of difference between the actual performance and the standard.
4. Taking corrective actions: It is initiated by the manager who corrects any defects in actual performance.
Controlling process thus regulates companies’ activities so that actual performance conforms to the standard plan. An effective control system enables managers to avoid circumstances which cause the company’s loss.