Question

What is controlling?

Hint:

{Controlling in Simple Words:}

• Check performance vs standards
• Find gaps
• Fix problems

It ensures things happen as planned.

Answer 1

Controlling

Definition:

Controlling is a fundamental function of management that involves monitoring organizational performance, comparing actual performance with predetermined standards, and taking corrective actions whenever necessary to ensure that organizational goals are achieved efficiently and effectively.

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Key Features of Controlling:

Goal-Oriented:
It focuses on achieving organizational objectives.

Continuous Process:
It is an ongoing activity carried out regularly.

Pervasive Function:
It is required at all levels of management.

Forward and Backward Looking:
It evaluates past performance and helps improve future performance.

Dynamic Process:
It adapts to changing business conditions.

Action-Oriented:
It emphasizes corrective action rather than merely detecting deviations.

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Process of Controlling (Steps):

1. Setting Performance Standards

Establishing benchmarks or targets

Standards should be clear, measurable, and realistic

2. Measurement of Actual Performance

Collecting data through reports, observation, or inspection

3. Comparison of Actual Performance with Standards

Identifying deviations

Determining whether deviations are significant

4. Analysis of Deviations

Finding causes of deviations

Distinguishing between controllable and uncontrollable factors

5. Taking Corrective Action

Correcting errors if deviations are significant

Revising standards if they are unrealistic

Reinforcing positive performance

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Importance of Controlling:

Ensures achievement of goals

Promotes efficient use of resources

Provides feedback for better decision-making

Improves employee performance and discipline

Helps in adapting to environmental changes

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Types of Control:

Type	Timing
Feedforward Control	Before operations begin
Concurrent Control	During operations
Feedback Control	After operations are completed

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Relationship Between Planning and Controlling:

Planning and controlling are interrelated. Planning sets the standards, and controlling ensures that performance is aligned with those standards. Without planning, controlling has no basis; without controlling, planning becomes ineffective.