Control Process

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Definition of Control Process

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The control process is the careful collection of information about a system, process, person, or group of people which is required to make necessary decisions about each of the department in the process. Managers in the company set up the control systems which consist of the four prior key steps which we will discuss in the later section. 

The performance of the management control function is important for the success of an organization. Management is required to execute a series of steps to ensure that the plans are carried out accordingly. The steps that are executed in the control process can be followed for almost any application, also for improving the product quality, reduction of wastage, and increasing the sales.

What is Controlling?

The Controlling process assures the management that the performance rate does not deviate from its standards. 

Controlling Process consists of five steps: 

  1. Setting the standards.

  2. Measuring the performance.

  3. Comparing the performance to the set standards 

  4. Determining the reasons for any such deviations which is required to be paid heed into. 

  5. Take corrective action as required. Correction can be made in regards to changing the standards by setting them higher or lower or identifying new or additional standards in the department. 

Process of Controlling

The Controlling Process involves the below-mentioned steps, which are discussed in brief:

  • Establishing the Standards Which are to be Attained

This simply means setting up the target which needs to be achieved to meet the organisational goals. These standards set the criteria for checking the performance. The control standards are required in this case. 

  • Measurement of the Actual Performance Which is Performed by the Employees:

The actual performance of the employee is then measured against the set standards. With the increase in levels of management, the measurement of performance becomes quite difficult.

  • Comparing the Actual Performance With the Set Standard

Comparing the degree of difference between the actual performance and the set standard.

  • Take the Corrective Actions: This is being initiated by the manager who corrects any sorts of defects in the actual performance.

Types of Control

Basically, we will discuss three types of control. Following are discussed here:

  • Feedback Control: This process involves collecting the information on which the task is being finished, then assessing that information and improvising the same tasks in the future.

  • Concurrent Control: This is the real-time control, which checks any problem and examines the same to take action before any loss has caused. 

  • Predictive Control: Predictive control foresees the problem ahead of its occurrence. 

Features of Controlling

The features of controlling are discussed point-wise to give a clear insight into the concept. The features are as follows:

  • Controlling helps in achieving organizational goals.

  • The process facilitates optimum use of resources.

  • Controlling judges, the accuracy of the standard.

  • The process also sets discipline and order.

  • Controlling process motivates the employees and boosts the employee morale, eventually, they strive and work hard in the organization.

  • Controlling ensures future planning by revising the set standards.

  • This improves the overall performance of an organization.

  • Controlling minimises the commission of errors.

Advantages of Controlling

The organization inculcates the process of controlling due to its undying advantages. The advantages of controlling are as follows:

  • The Controlling Process saves time and energy.

  • This allows the managers to concentrate on important tasks, and also allows better utilization of the managerial resource.

  • Assures timely and corrective action to be taken by the manager.

In contrast to this, controlling suffers from the disadvantage that the organization has no control over the external factors that also affect the organization. Controlling Process becomes a costly affair, especially for the small companies.

FAQ (Frequently Asked Questions)

1. How are Performance Standards Set?

Ans. Performance standards are the set of monetary terms like revenue, costs, or profits. They also may be stated in other terms, such as units produced, the number of defective products that are produced, or levels of quality or the customer service.

Performance Standards are Set According to:

  • The position, and not individually.

  • They are set as specific indicators of success.

  • They are set as meaningful, reasonable and attainable standards.

  • Performance standards are expressed in terms of quantity, quality, timeliness, cost, safety, or via the outcomes.

2. What are Control Standards?

Ans. Control standards are categorized as the quantitative and qualitative standards. The Quantitative standards are expressed in terms of money. The Qualitative standards, on the other hand, are the intangible items. Control standards is a target against which the subsequent performance is to be compared. The standards might indicate how well a product is to be made or how effectively a service is to be delivered, all these are to be processed. The standards reflect specific activities or the behaviours which are necessary to achieve the organizational goals.

3. How Predictive Control Works?

Ans. Predictive control is an advanced method which is used for the process of control that is used to control a process by satisfying a range of standard. The predictive controllers rely on the dynamic models of the process control. The predictive process helps the department to know the constraints much before.