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some exercise on management theories
Typology: Assignments
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Controlling is the process of monitoring, comparing, and correcting work performance.
As the final step in the management process, controlling provides the link back to planning. If managers didn’t control, they’d have no way of knowing whether goals were being met. Control involves making sure that plans are actually taking place in practice and responding when things do not according to plan. Control looks at activities that are happening now. Control means keeping a check that everything is in accordance with plan and if there is any deviation, taking preventive measures to stop that deviation.
There is a deep relationship between the controlling and planning functions of management. Showing the importance of their relationship, it is generally said that planning is meaningless without controlling and controlling is blind without planning.
Planning and controlling functions always co-exist or have to exist together as one function depends on the other. The controlling function compares actual performance with the planned performance and if there is no planned performance then controlling manager will not be able to know whether the actual performance is O.K. or not.
So both the functions are interlinked and interdependent as for successful execution of both the functions planning and controlling must support each other.
The control process is a three-step process of measuring actual performance, com-paring actual performance against a standard, and taking managerial action to correct devi-ations or to address inadequate standards.
To determine what actual performance is, a manager must first get information about it. Thus, the first step in control is measuring. It involves deciding how to measure actual performance and what to measure.
HOW WE MEASURE. Four approaches used by managers to measure and report actual performance are personal observations, statistical reports, oral reports, and written reports. . WHAT WE MEASURE. What is measured is probably more critical to the control process than how it’s measured. Why? Because selecting the wrong criteria can create serious problems. Besides, what is measured often determines what employees will do.
work to improve, and then take the necessary corrective action to help make that happen.
Organizational performance is the accumulated results of all the organization’s work activities.
Three frequently used organizational performance measures include (1) productivity , which is the output of goods or services produced divided by the inputs needed to generate that output; (2) effectiveness, which is a measure of how appropriate organizational goals are and how well those goals are being met; and (3) industry and company rankings compiled by various business publications.]
Tools for measuring organizational performance: Feedforward controls take place before a work activity is done. Concurrent controls take place while a work activity is being done. Feedback controls take place after a work activity is done. Financial controls: Financial controls that managers can use include financial ratios (liquidity, leverage, activity, and profitability) and budgets. Balanced scorecards: It provides a way to evaluate an organization’s performance in four different areas(financial, customer, internal processes, and people/innovation/growth assets) rather than just from the financial perspective. Information controls: One information control managers can use is an Management Information System (MIS), which provides managers with needed information on a regular basis. Others include comprehensive and secure controls such as data encryption, system firewalls, data backups, and so forth that protect the organization’s information. Benchmarking of best practices: It provides control by finding the best practices among competitors or non-competitors and from inside the organization itself. Benchmarking is the search for the best practices among competitors or non- competitors that lead to their superior performance.
Customer interaction is an important area of concern for managers in organizations as it directly impacts the organization’s revenue profit and performance. Customers who are satisfied are more loyal and expected to repeat purchase with the organization. Control is important to customer interactions because employee service productivity and service quality influences customer perceptions of service value. Organizations want long-term and mutually beneficial relationships among their employees and customers.
Stephen P. Robbis, David A. Decenzo, & M. Coutler (2013). Fundamentals Of Management: Essential Concepts And Applications (8th EDITION). New Jersey: Pearson Education, Inc.
Stephen P. Robbis, & M. Coutler, (2012). Management (11th EDITION). New Jersey: Pearson Education, Inc.
China: (2021, March 23). Retrieved from http://www.eauc.hk/show.asp?id=
Patel, D. (2021, March 23). What is control and how is control related to planning?. Retrieved from https://specialties.bayt.com/en/specialties/q/79694/what-is-control-and-how-is-control- related-to-planning/
