Controlling in Management: Definitions, Dimensions, Resistance, Importance, Limitations
The management process will be incomplete and become useless without the control function.
Control is a tool that helps an organization measures and compares its actual progress with the
established plan.
Thus, control ensures what is done is what is intended. It is to be exercised by everyone in the
organization, from top level to bottom level.
‘Controlling is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are accomplished’. – Harold Koontz
Control is one of the managerial functions like planning, organizing, staffing and directing. It is an
important function because it helps to check the errors and to take the corrective action so that
deviation from standards are minimized and stated goals of the organization are achieved in desired
manner.
According to modern concepts, control is a foreseeing action whereas earlier concept of control was
used only when errors were detected. Control in management means setting standards, measuring
actual performance and taking corrective action. Thus, control comprises these three main activities.
The management process will be incomplete and become useless without the control function.
Control is a tool that helps an organization measures and compares its actual progress with the
established plan. Thus, control ensures what is done is what is intended. It is to be exercised by
everyone in the organization, from top level to bottom level.
Definitions of Controlling:
‘Management control is a systematic effort to set performance standards with planning objectives,
to design information feedback systems, to compare actual performance with these predetermined
standards, to determine whether there are any deviations and to measure their significance, and to
take any action required to assure that all corporate resources are being used in the most effective
and efficient way possible in achieving corporate objectives’. – Robert J. Mockler
‘Control of an undertaking consists of seeing that everything is being carried out in accordance with
the plan which has been adopted, the orders which have been given, and the principles which have
been laid down. Its object is to point out mistakes in order that they may be rectified and prevented
from recurring’. – Henry Fayol
‘Control is checking current performance against pre­determined standards contained in the plans,
with a view to ensure adequate progress and satisfactory performance’ – EFL BRECH
‘Controlling is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are accomplished’. – Harold Koontz
‘Management is the profession of control’ – Stafford Beer
From these definitions it can be stated that there is close link between planning and controlling.
Planning is a process by which an organization’s objectives and the methods to achieve the
objectives are established, and controlling is a process which measures and directs the actual
performance against the planned objectives of the organization. Thus, planning and control are
often referred to as siamese twins of management.
Controlling in Management – 5 Features
1. It seeks planned results from the subordinates enabling manager to have effective control over
subordinates’ activities.
2. It is a goal-oriented function of management. It measures the progress of activities, finds
deviations if any and initiates corrective action to accomplish goals as per the plans.
3. It is present at all levels of management and in all types of business or non-business organisations
therefore, controlling is a pervasive function.
4. It completes the cycle of management process and provides basis for improvement in planning in
the next cycle. Therefore, it is a continuous process.
5. Controlling is both backward and forward looking function. As a backward function it measures
and compares actual performance with standards set in the past. As a forward looking function it
provides basis for improvement in planning for the future.
Controlling in Management – 5 Basic Steps Involved in the Control Process
The basic control process consists of the following five steps:
Step # 1. Establishment of Standard:
First step in establishing control system is setting standards. Standards serve as a basic for measuring
performance. They may be expressed in quantitative or qualitative terms. A standard is a criterion
against which results can be measured. In quantitative terms they are expressed in numbers.
For example, number of units to be 4 produced by workers, the cost of production, cost of
distribution per unit, etc. Therefore, the planner has to set the standards which must be valid,
understandable and acceptable and state clearly to workers from whom the results are expected.
Step # 2. Measurement of Performance:
The second important element in the process of control is the measurement of the actual
performance. It is not only knowing what has happened but also what is likely to happen. It means
that deviations are to be predicted in advance to take corrective action in advance for the
achievement as soon as the operations are completed. Concurrent control, i.e., it should also be
measured while the activity is in the course of operation which makes the appraisal possible in time.
Step # 3. Appraisal of Performance:
Comparing the actual performance with the standards is known as appraisal. If the standards are
properly determined and methods are clearly communicated measurement of performance
becomes easier. The manager should concentrate on major deviations while making the appraisal of
performance and should not waste his time and energy on small deviations. This approach will give
the correct, quick and favourable results.
Step # 4. Finding out Deviations:
While comparing the actual with standard, it is necessary to find out the extent, nature and the basic
causes for deviations. To find out the cause of deviations one has to depend on proper, accurate and
timely information. A manager after getting the information from various departments can easily
find out the causes of deviations and the persons who are responsible for such errors.
Step # 5. Remedial Measures:
The last but riot the least element in the process of control is Remedial actions. Correction of
deviations involve improvement in technology, direction, supervision, setting new goals,
restructuring the organization and revision of targets, set in advance. If corrective action is not taken
properly in time against the major deviations then it will lead to heavy losses.
Controlling in Management – 11 Most Important Areas of Controlling
The scope of control is very wide. A well designed plan of control covers almost all management
activities.
According to Holden, Fish and Smith, the main areas of control are as follows:
1. Control over Policies:
The success of any business organization to a large extent depends upon that how far its policies are
implemented. Hence, the need of control over policies is self- evident, in many enterprises; policies
are controlled through policy manuals.
2. Control over Organization:
Control over organization is accomplished through the development of organization chart and
organization manual. Organization manual attempts at solving organizational problems and conflicts.
Making long – range organization planning possible, enabling rationalization of organization
structure, helping in proper designing of organization and departments.
3. Control over Personnel:
The statement that management is getting the work done through people, underlines sufficiently
the importance of control of personnel. All employed working at different levels must perform their
assigned duties well and direction of their efforts and controlling their behaviour is the process of
control over personnel. Personnel director or personnel manager prepares – control plan for having
control over personnel.
4. Control over Wages and Salaries:
Such type of control is done by having programme of job evaluation and wage and salary analyses.
This work is done either by personnel department of industrial engineering department. Often a
wage and salary committee is constituted to help these departments in the task of controlling wages
and salaries.
5. Control over Costs: Cost control is experienced by the cost accountant by setting cost standards
for material, labour and over-heads and making comparison of actual cost data with standard cost.
Cost control is supplemented by budgetary control system.
6. Control over Methods:
Control over methods is accomplished by conducting periodic analysis of activities of each
department. The functions performed, method adopted and time devoted by every employee is
studied with a view to eliminate non­essential motions, functions and methods.
7. Control over Capital Expenditure:
It is exercised through a system or evaluation of projects, ranking of projects in terms of their
ranking power and appropriating capital to various projects. A capital budgeting committee reviews
the projects proposed and approves the projects of advantages to the firm, capital budgeting,
project analysis, break even analysis, study of cost of capital, etc., are same popular techniques of
control over capital expenditures.
8. Control over Production:
Control over production is effected through studies about market needs, attitude of customers and
revision in product lines. Efforts are made of simplify and rationalize the line of products. Such
efforts serve as control measures. Routing, scheduling, dispatching, follow up, inventory control
inspection and quality control are some popular techniques of production control.
9. Control over Research and Development:
Such activities are highly technical in nature so no direct control is possible over them. By improving
the ability and judgment of research staff through training programmes and other devices, an
indirect control is exercised on them. Control is also exercised by having a research budget in the
business.
10. Control over External Relations:
Public relations department is responsible for controlling the external relations of the enterprise. It
may prescribe certain measures for other operating departments which are instrumental in
improving external relations.
11. Overall Control:
It is effected through budgetary control Master Plan is prepared for overall control and all the
departments are made involved in this procedure. For effective control through the master plan,
active support of top-management is essential.
Controlling in Management – Elements of an Effective Control System
Control is an essential feature of successful management much of precision of a managerial
education is focused on the improvement of control techniques. Control is a process that guides
activity towards some pre-determined goal.
To achieve the desired one, the following are the important requirements for making any control
system effective:
1. Direct Control:
Modern system of control is employee-oriented rather than work-oriented. Control should be
exercised on people who had machine and materials. People generally oppose the control measures,
so their attitude should be made to change by proper education about control and its significance.
2. Control by Objectives:
The control must be goal oriented and by objectives. As objectives clarify the expected results in
meaningful and realistic terms, they provide the control standards with which actual performance
can be measured. The control system should be according to the nature and needs of organisations.
3. Control should be Forward Looking:
Control must be forward looking in character. It should bring out the deviation in light at an earliest.
It must focus on strategic points with exceptions.
4. Control should be Simple and Balanced:
Control must be simple and balanced in nature. A control device that is not intelligible cannot be
practiced by the manager. So control tools must be simple and intelligible to both – controller and
controlled.
5. Managerial Self-Control:
Control is effected through managerial positions in the organisation structure. So each managerial
position must be vested with adequate authority for exercising control. Allocation of fixed duties and
responsibilities goes a long way towards securing effective control in the organisation.
6. There should be Flexibility in Control:
Control system should provide for some change but its basic structure must be retained. It has been
seen that even the best plans and other pre-determined criteria need to the changed from time to
time.
7. Economy in Control:
Economy is an important requirement of any control system. It is a truism to state the control must
be worth its results. A simple control procedure proves too economical.
8. Feedback System:
Feedback is the process of adjusting future actions based upon information about past performance.
Recently the concept has received attention very much. It shows the worth and utility of control
process.
9. Control should not be Negative:
It must be positive and constructive. It must be helpful. Control is not a command. It is a guidance.
The management should recognise the importance of human beings in control systems.
In the words of Ultrich, Learned and Booz – “The meaning which people give a control system in
terms of their own outlook is as critical as the technical design of the system.”
Controlling in Management: Definitions, Dimensions, Resistance, Importance, Limitations
(economicsdiscussion.net)
Concept of Controlling:
Controlling might be defined as follows:
Controlling might be defined as that managerial function which seeks to ensure an absolute
conformity (i.e. agreement) of actual performance of organisational personnel with the planned
standards to facilitate the most effective and efficient attainment of the enterprise objectives.
Under management theory and philosophy, controlling as a function of management, is always a
process; involving the following sequential steps:
(i) Determination of standards of performance, for all phases of organisational activity.
(ii) Measurement of actual performance.
(iii) Comparison of actual performance against standards; and locating deviations.
iv) Analysing the causes of deviations.
(v) Undertaking suitable remedial/corrective / feedback action – to bring performance on the right
track.
The above concept of the process of controlling, as consisting of sequential steps, could be
illustrated by means of the following chart:
Sequential Steps of Controlling Process
(1) “Controlling is the process which checks performance against standards. It makes sure that
organisational goals and objectives are being met.” -Theo Haimann and William G. Scott.
(2) “The managerial function of controlling is the measurement and correction of the performance
of activities of subordinates in order to make sure that enterprise objectives and the plans devised
to attain them are being accomplished.” – Koontz and O’Donnell
Controlling: Concepts, Features and Steps (With Diagram) (yourarticlelibrary.com)
Coordination Meaning
Coordination is the function of management which ensures that different departments and groups
work in sync. Therefore, there is unity of action among the employees, groups, and departments.
It also brings harmony in carrying out the different tasks and activities to achieve the organization’s
objectives efficiently. Coordination is an important aspect of any group effort. When an individual is
working, there is no need for coordination.
Therefore, we can say that the coordination function is an orderly arrangement of efforts providing
unity of action in pursuance of a common goal. In an organization, all the departments must operate
a part of a cohesive unit to optimize performance.
Coordination implies synchronization of various efforts of different departments to reduce conflict.
Multiple departments usually perform the work for which an organization exists.
Therefore, synchronization between them is essential. Lacking coordination, departments might
work in different directions or at different timings, creating chaos.
Common definitions of the coordination function
Mooney and Reiley – ‘Coordination is an orderly arrangement of group efforts to provide unity of
action in the pursuit of common goals.‘
Charles Worth – ‘Coordination is the integration of several parts into an orderly hole to achieve the
purpose of understanding.‘
Brech – ‘Coordination is balancing and keeping together the team by ensuring suitable allocation of
tasks to the various members and seeing that the tasks are performed with the harmony among the
members themselves.‘
Mary Parker Follett – ‘The first test of a business administration should be whether you have a
business with all its parts so coordinated, so moving together in their closely knit and adjusting
activities, so linking, inter-locking, inter-relating, that they make a working unit that is not congenic
of separate pieces, but a functional whole or integrated unit.‘
Features of coordination
Coordination is the integration, unification, synchronization of the efforts of the departments to
provide unity of action for pursuing common goals. A force that binds all the other functions of
management.
The management of an organization endeavours to achieve optimum coordination through its basic
functions of planning, organizing, staffing, directing, and controlling.
Therefore, coordination is not a separate function of management because management is
successful only if it can achieve harmony between different employees and departments. Here are
some important features of coordination:
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It is relevant for group efforts and not for individual efforts. Coordination involves an orderly
pattern of group efforts. In the case of individual efforts, since the performance of the
individual does not affect the functioning of others, the need for coordination does not
arise.
It is a continuous and dynamic process. Continuous because it is achieved through the
performance of different functions. Also, it is dynamic since functions can change according
to the stage of work.
Most organizations have some sort of coordination in place. However, the management can
always make special efforts to improve it.
Coordination emphasizes the unity of efforts. This involves fixing the time and manner in
which the various functions are performed in the organization. This allows individuals to
integrate with the overall process.
A higher degree of coordination happens when the degree of integration in the performance
of various functions increases.
It is the responsibility of every manager in the organization. In fact, this is integral to the role
of a manager because he synchronizes the efforts of his subordinates with others.
Solved Question on Coordination
Question: What is the coordination meaning are the important features?
Answer:
Coordination is the function of management which ensures that different departments and groups
work in sync. The important features of coordination are:
It is essential for group efforts and not for individual efforts.
It is a continuous and dynamic process.
Coordination emphasizes the unity of efforts
Helps in the integration of functions
It is the responsibility of every manager in the organization.
Coordination Meaning, Definition, Features, Solved Questions (toppr.com)
Why is it so hard to make a decision?
If you’re a manager who sometimes dreads making decisions, it's understandable. When you lead
the decision-making process, there's a lot at stake. Your team members count on you to be a good
leader. Sometimes, you may not have a significant amount of time to best decide.
Other times, the information available to you might not offer a straightforward course of action. The
fear of making the wrong decision can loom over your head and fill you with self-doubt. Sometimes,
you might struggle with decision fatigue and feel exhausted by even the smallest decision.
Being the decision-maker is filled with opportunities with chances of success and failure. Making a
bad decision is always a possibility. The key is to make the best possible decisions you can with the
information you have available.
Trust your training and knowledge, but also keep working on improving your decision-making
processes.
But trusting your abilities and having confidence in yourself doesn't come without some work. If
you're looking for help with your confidence, check out what our BetterUp coaches can do for you.
We're here to help you become more comfortable making your managerial decisions.
What are the main steps to take when making a decision as a manager?
The entire process of how and when to decide can seem like a lot. But being prepared and following
steps can help you have a rational decision-making process.
You will develop your own process over time, but it helps to build on a basic framework.
Here's a step-by-step process that you can follow when you have to make managerial decisions:
1. Identify the decision that you have to make
It's essential to identify what you need to decide on. This way, you know what problem you're
solving. If you don't know the details of what you're dealing with, make sure you take the time to
familiarize yourself with them.
2. Review relevant information
You can start brainstorming after you've focused on what decision you must make. To make an
informed decision, you need to take stock of all available information.
Reviewing a lot of information can grow chaotic. Try to stay organized by using strategies like
flowcharts or colored sticky notes. You don’t want to lose an important document in a stack of
hundreds.
3. Think about possible alternatives
How many possible solutions are there to this decision? Since you've reviewed your information
carefully, you've probably considered several options. There could be many alternatives, but this
isn't the stage where you figure out the best choice.
Ask questions. Then, listen to any feedback you receive about these alternatives from your team
members or other trusted individuals. You’ll have plenty to think over, so stick to your organizational
methods.
4. Weigh your evidence
Now that you have your possible solutions, it's time to weigh all the pros and cons. Think about your
competitors and the outcomes they've had with such decisions. Review the possible wins and losses
that you could experience for each possible alternative.
You can also consider how your decision would impact your group members and stakeholders. What
kind of change will they have to adapt to? Don’t rush to this stage. You want to make a decision that
you feel comfortable with and confident in.
5. Choose between your alternatives
You've arrived at the step where you make your final decision. Review your information and
alternatives and weigh your evidence. Then you can make your decision. Trust yourself: you're
prepared to make this call. You don't have to make perfect decisions. You need to make good
decisions.
6. Take action
The final step is executing your decision. Create a plan that sets you and your business up to
succeed. Your strategic planning could take a while, but that's important for your decision’s success.
You won't reap as many benefits if you don't execute it properly.
7. Reflect on your decision
Some people consider this a bonus step. But if you want to become a better decision-maker, it's
critical. You've followed a decision-making model. You made your decision and executed it.
Now that you're done, think about how well your decision-making skills served you and what you'd
do differently.
The goal in reflection isn't to convince yourself that you made all the right choices. The goal is to be
honest about what worked and what didn't about how you approached the decision.
Did you solve the problem you first identified? How good were you at gathering information? Are
your goals being met?
Taking notes can help you learn from your mistakes and learn more effective decision-making
processes for the future. This way you can become a better decision-maker for when the decisions
get harder.
Here are four common challenges you may encounter in the decision-making process:
1. Having too much information
With all of the information you've gathered, it's easy to get overwhelmed. Having too little
knowledge can be overwhelming, too, and let your biases slip in. With practice, prioritizing and
picking the most crucial information to review will become easier.
Don’t hesitate if you need to do some more research to better guide your decisions. Research skills
never go out of style, and you’ll know how to prioritize what you find.
Be realistic, though. As a manager, you rarely have all of the time or information you might like.
Being 100-percent certain is not the goal.
2. Being overconfidence
Even though you're doing your best to make informed decisions, you could always make the wrong
decision. It's part of life. But if you don’t acknowledge this possibility, it could make you more prone
to mistakes or failure. Being confident is great, but overconfidence can lead to unnecessary errors.
3. Not identifying the problem correctly
The first step in your decision-making process is an important one. It sets the tone for the rest of
your research and consultation. If you don't identify what you're trying to decide on, you can’t reach
the best decision in the end.
Some decisions are complex and require a lot of time, so don't rush.
4. Getting everyone on board
The bottom line is that sometimes you're the decision-maker. As a manager, you make the final
decision, but hearing feedback and working collaboratively is crucial. Be clear with your team
whether or not the decision itself will be collaborative so you don't set the wrong expectations.
4 pro tips to ace your way of making decisions
There will be both easy-going and challenging moments for every decision you make. Here are four
final tips to help you feel confident about the decisions you make:
1.
2.
3.
4.
Take advantage of organizational tools
Communicate clearly and regularly to everyone involved
Find a routine that works for you and stick with it
Don't let your past mistakes make you hesitant about future decisions
7 Steps of the Decision-Making Process in Management (betterup.com)
It's easy to say that something isn't working. Problem solving is a lot more difficult and complicated
and requires time and dedication.
Most of what managers do is to make decisions and solve problems. Often, managers are under
stress and with limited time to make critical decisions in an organization. Consequently, when
managers encounter a new decision or a problem they must solve, they react with decisions that
seemed to work before. Sometimes, this approach can put you in a loop of solving the same problem
over and over. It is often more useful to get used to an organized approach to solving problems and
making decisions. Not all decisions can be made and problems solved following a rational approach.
However, we have a few guidelines that will help managers to get started. You shouldn’t be
intimidated by the length of our guidelines because they will make you a better manager.
After you have practiced our guidelines, they will become easy for you. You can utilize them to suit
your own needs. It is better for managers to view a problem as an opportunity. Here are the best
steps to help managers make better decisions and solve problems effectively..
Define the problem
Most people struggle to define a problem. In most cases, they react to opinions and what they think
the problem is. It is better to understand more about the problem before making a decision. You can
define a problem with input from others and yourself. Here are a few questions you need to ask
yourself and others when defining a problem.
• What makes you think there is a problem?
• How is it happening?
• Where is it happening?
• How is it happening?
• Why is it happening?
After asking all the relevant questions, you can write down the description of the problem. Write
down what triggered the problem to happen, where the problem happened, why it happened and
the people it affected.
How to define complex problems
It is good to understand that problems are different. We have complex and simple problems.
Complex problems require more materials and input to get solved. If the problem seems to be
overwhelming, you should break it down by repeating the above steps. You should verify how you
understand the problem. Use tools like Mindmaps to help you define the scope.
Prioritize the problem
In some cases, managers find themselves dealing with different problems. If this is the case, it is
important to prioritize the problems and know which problems to address first. You should know the
difference between urgent and important problems.
Often, what most managers consider to be important problems are in real sense urgent problems.
You need to give important problems more attention. For example, if you are dealing with phone
calls, it is important to design your system to prioritize on urgent phone calls.
Understand the role of people in the problem
The role of the manager in the problem can influence how the manager perceives the role of others.
Sometimes, if you feel too guilty about your role in the problem, you will ignore the accountability of
other people. Also, some managers get blinded so much by the role other people play in a problem
that they forget that they also have a role in the problem.
Find the potential causes of the problem
You don’t know a lot about what you don’t know. It is, therefore, crucial to get input from others
because they may be affected by the problem as well. You should collect input from other people
one at a time. Write down what you have read from other people and your opinions. Write down a
clear description of the cause of the problem in terms of what is happening, when it is happening,
where it is happening and why it is happening.
Identify alternatives for resolving the problem
When you get at this point, it is helpful to keep other people involved unless you have a personal
employee problem. You need to brainstorm and collect many ideas and screen them to find the best
ideas. It is crucial when collecting these ideas to not pass judgment on the ideas. You should write
the ideas down as you hear them.
Select an approach to solving the problem
You should choose the best approach to solve your problem for a long time. Some solutions are just
for a short time and won’t be helpful to your business. Also, it is important to choose a solution that
is realistic to accomplish. You should know whether you have the resources to solve the problem
and if you have enough time to implement your approach. Consider the extent of the risk that comes
with each alternative.
Have a plan for implementing the best alternative
You should consider what the situation will look like when you have solved the problems. Know the
steps that you need to take to implement the best alternative solution. Know the processes or the
systems you need to change in your organization to ensure that the solution is effective. Managers
should make sure that the steps are being followed to solve the problem. You will need resources in
terms of money, people and facilities to solve the problems. It is also crucial to know the time
needed to implement the solution and write a schedule to include the start and stop time. In most
cases, managers choose other people to be responsible for solving the problem. If this is the case,
you should know the responsible persons in solving the problem.
If other people are involved in solving the problem, you should communicate the plan to them and
ensure that they follow the plan by supervising them.
Verify if the problem has been solved
Managers should always verify if the problem has been solved and one of the best ways to verifying
is to resume normal operations in your organization. You should consider the changes that need to
be made to prevent the problem from re-occurring in the future. You should consider training,
changing policies and putting procedures in place to prevent the problem from happening again.
After solving a problem, managers should learn many things from the process. A brief memo can
help to highlight the success of the solution.
Guidelines to Decision Making and Problem-solving in an Organization | CX Master
6 Step Problem Solving Process.pdf (uapb.edu)
Interview Questions:
1. What is management to you?
2. What is controlling and how it affects your performance being part of the management?
3. Why are coordinating skills important?
4. How do you improve coordination in the organization?
5. What are your personal guidelines for effective decision-making in management?
6. Why decision-making is an important component of good management?
7. How does problem-solving help to develop the organization?
8. Being in education and having been running various schools for how many years what is the most
important advice you can give to the new generation about management?