Controlling in Management - The Principles of Control : Methodologies and Techniques
Controlling is a crucial activity of managers. Controlling plays a vital role in management which involves several procedures, principles, methods, etc. All the managers are required to understand the importance of controlling and the methods involved in it. Let us know about the principles of control in management and explaining each principle in detail makes the readers have prior knowledge on this.
Definition and List of the Principles of Control
The Principles of control can be defined as different methodologies, techniques used by the managers to control and monitor various business activities which help for the growth of the organization. These principles also help to protect and safeguard the organization, its assets, liabilities, resources, etc. Given below are the list of principles of controlling:
Principle of Reflection of Plans - Planning and controlling go hand in hand. If any entity has a proper plan then it is much easier to make a control system for that entity. Overall, a proper plan means the control will be more effective. It is the basic principle of control. The principle of reflection of plants plays a predominant role in the organization for its growth in terms of quality and quantity. Planning and controlling are like side by side of a coin. This principle helps to reflect all the plants that were designed in the first stage of the organization.
Principle of Prevention - There is a concept named as prevention is better than cure. This will apply to the control function as well. Hence, control does not always focus on the improvement but also on solving the problems as well. It is another important principle of control that helps to prevent the negative aspects of the firm at the initial stage. From the ancient days as we believed prevention is better than cure, this principle helps to realize defects in the beginning and also tries to find remedies for them. Feedforward control is a famous technique used in the principle of prevention.
Principle of Future Directed Control - Control is a function which looks forward. With the help of relevant information controls can be directed towards the future and can help in making things much better.
Principle of Efficiency of Control - It is very necessary and important that there needs to be efficiency in the approaches and techniques of the system of control.
Principle of Action - Control function will only be justified only when there will be remedial action to take. Pointing out the drawbacks will not be enough. There is a need to take action as well to make the management effective and efficient. Every task cannot be made with a plant design on paper. It should take a physical form and put it into action. Then only we can move forward either in Life or in work. This principle of action is also an extension of finding out defects and deviations. It helps to take necessary remedial actions for the findings.
Principles of Standards - There are predetermined standards which are already being set up by the company and that needs to be achieved by the workers.
Principles of Assurance of Objectives - Just by detecting the deviations in the work, the company's objectives can be achieved on a quick and more efficient and effective basis.
Principle of Organizational Suitability - For having an efficient and effective control, the business organisation structure must be well integrated and clear. It is the most important principle of control in management. Every organization needs to choose a set of principles that are suitable for that particular organization because every organization may vary from its type, size, methodologies, etc.
Principle of Responsibility:- Apart from the principles of control, responsibility is the basic duty that should be owned by every employee from a lower level to a higher level of the organization for its smooth and safe growth. It was also helpful in gaining name and fame for the organization.
Principle of Exception:- This principle majorly concentrates on minor exceptional cases that may deviate slightly from the standards stated at the beginning of the organization. It also takes care that these exceptions may not disturb or affect the growth of the organization.
Principle of Critical Points:- Each organization plays several critical points because of various factors. At that time, the principles of control in management help the managers to pay more attention to these critical points, whether they are expected or unexpected.
Principle of the Pyramid:- It is also one of the principles of control that explains the delegation of authority as well as the direction of a message which can pass from the lower level to a higher level. Even though it seems to be General, it plays a very significant role as certain issues may arise for the middle-level employees because of superiors and subordinates.
Principle of Future-directed Control:- This principle of control is completely contrasted to the above principle, which is the feedback principle. It is simply known as the feed-forward principle. Along with the low-level employees, planning and controlling the action, the high-level employees will forecast and monitor the activities going on in The firm, and it takes care of all the activities that need to move smoothly without any deviations or disturbances.
Principle of the Standard:- Every organization has a set of standards that need to be obeyed and followed by all levels of the organization. These should be productive and qualitative, for example, punctuality, delegating work, reporting to the required people, etc., all these Commander standards should be transparent and specific to their organization.
Principle of Objective:- It is the most common principle of control. Because every organization's motive is to achieve its objective either monetary benefit or fame or any other, this principle always monitors the works for the final objective. It also controls all the deviations and looks after the remedies facilitated to that particular deviation.
Meaning of Controlling
Controlling is one of the important elements in the field of management process and is one of the managerial functions. Controlling is the last managerial function after planning, organizing, staffing and directing. Basically, controlling makes sure that the activities which are already planned are accomplished or not. It helps in achieving the desired goals by planning. Controlling is all about comparing the actual results with the standards which are pre determined and take necessary corrective measures. In other words, it is the process of analysing the work by comparing it with the goals and taking steps to make it better.
Nature of Controlling
Controlling is a function of management or we can say that actually is actually a follow up action for the other functions of management.
Under control, actual performance is determined against the predetermined standards and makes necessary changes or actions. Its work is based on the actual plan which was made at the start. Hence, control is based on planning.
Controlling is all about reviewing the standards of performance on a continuous basis and taking corrective measures based on that. Hence, it is a dynamic process.
Controlling works on comparing the actual work and the standards made for it. Corrective actions are also made for improving its future performance. Hence, it is to be said that controlling aims at the future.
Controlling is a continuous process and not only one step process as it involves constant analysis of actual and planned performance.
FAQs on Principles of Control: Explained
1. What is controlling, and why is it considered a crucial management function?
Controlling is a primary managerial function that involves monitoring organisational performance to ensure it aligns with the set goals and standards. It is crucial because it helps in judging the accuracy of standards, making efficient use of resources, improving employee motivation by providing clear performance feedback, and ensuring order and discipline. Without controlling, planning would be a futile exercise as there would be no way to track progress or take corrective actions.
2. What are the key principles of controlling in management?
Effective controlling is based on several key principles that guide managerial action. The most important ones include:
Principle of Reflection of Plans: Controls must be designed to reflect the nature and structure of plans. The more controls are based on plans, the more effectively they will serve the interests of the enterprise.
Principle of Critical Point Control: Managers should focus their attention on factors that are critical to performance. It is not efficient to control every detail; instead, focus should be on Key Result Areas (KRAs).
The Exception Principle: This principle states that a manager should only focus on significant deviations, whether positive or negative. Matters that are routine or as per the plan should be handled by subordinate staff.
Principle of Action: Control is only justified if indicated deviations from plans are corrected through appropriate and timely action.
3. Can you explain the main steps involved in the process of control?
The controlling process involves a sequence of logical steps to ensure performance meets organisational goals. The steps are:
Step 1: Setting Performance Standards: The first step is to establish clear, measurable standards against which actual performance will be compared. These standards can be quantitative (e.g., units produced per hour) or qualitative (e.g., improving customer satisfaction).
Step 2: Measurement of Actual Performance: Once standards are set, the actual performance is measured in an objective and reliable manner.
Step 3: Comparison of Actual Performance with Standards: This step involves comparing the measured performance against the pre-determined standards to find out the deviation.
Step 4: Analysing Deviations and Taking Corrective Action: If deviations are found, they are analysed to identify the causes. Finally, corrective actions are taken to prevent recurrence and bring performance back on track.
4. What are the different types of control systems used in an organisation?
Organisations typically use three types of control systems based on the timing of their application:
Feedforward Control: This is a proactive and preventive control that anticipates problems before they occur. For example, inspecting raw materials before they enter the production line is a form of feedforward control.
Concurrent Control: This type of control takes place while an activity is in progress. It involves direct supervision and aims to correct problems as they happen. An example is a supervisor watching over a worker to ensure a task is done correctly.
Feedback Control: This is a post-action control that analyses results after an activity has been completed. The feedback is then used to improve future activities. Examples include customer satisfaction surveys and financial statement analysis.
5. What is the relationship between planning and controlling as functions of management?
Planning and controlling are deeply intertwined and often referred to as the 'inseparable twins' of management. Planning is meaningless without controlling, as it sets the goals and standards that controlling uses to measure performance. Conversely, controlling is blind without planning, as there would be no benchmark to determine if performance is on track. Planning is prescriptive, defining the future course of action, while controlling is evaluative, assessing past performance to improve future planning.
6. How does the 'Principle of Critical Point Control' help managers save time and effort in a large organisation?
The 'Principle of Critical Point Control' makes management more efficient by advising that it is not practical or economical to check every single activity. Instead, managers should focus on Key Result Areas (KRAs) or critical points where deviations can cause the most harm to the organisation. For instance, in a manufacturing plant, a 5% increase in labour cost is more critical than a 2% rise in postage charges. By concentrating only on these significant points, managers can apply their efforts where they are most needed, saving time and preventing major business losses.
7. In what ways can a manager apply the 'Management by Exception' principle in a real-world business scenario?
A manager can apply 'Management by Exception' by setting a permissible range for performance and only intervening when results fall outside this range. For example, a sales manager might set a monthly sales quota for each employee with an acceptable deviation of +/- 5%. Instead of reviewing every employee's performance daily, the manager's attention is only drawn to those who are either performing significantly below the target or exceptionally above it. This allows the manager to focus on coaching underperformers or learning from top performers, while not micromanaging the majority who are meeting expectations.
8. Can controlling sometimes have a negative impact on employee motivation? If so, how can it be avoided?
Yes, if implemented poorly, controlling can negatively impact employee motivation. This happens when employees perceive control systems as overly restrictive, untrustworthy, or designed to assign blame. For example, if performance standards are set unrealistically high, employees may become demotivated. To avoid this, managers should ensure that the control system is perceived as fair and supportive. This can be achieved by involving employees in setting performance standards, providing constructive feedback instead of just criticism, and focusing on problem-solving rather than punishing individuals for deviations.
