2. Controlling
• Controlling is a fundamental management function that involves
monitoring, evaluating, and regulating various organizational
activities to ensure they align with predetermined goals.
3. Controlling
• Definition:
• Controlling involves measuring actual performance against predetermined
standards, identifying deviations, and implementing corrective actions.
• Need and Importance:
• Ensures that organizational activities are on track to achieve desired
objectives.
• Helps in identifying deviations and taking corrective actions promptly.
• Facilitates efficiency, effectiveness, and goal attainment within the
organization.
4. The Control Process:
• Establishing Standards:
• Setting benchmarks or criteria against which performance can be measured.
• Measuring Performance:
• Assessing actual performance through various metrics, KPIs (Key Performance
Indicators), or performance evaluations.
• Comparing Performance Against Standards:
• Analyzing the measured performance against predetermined standards to
identify any deviations.
• Taking Corrective Action:
• Implementing necessary changes or corrective measures to address
deviations and bring performance back in line with objectives.
5. Managerial Decisions in Controlling:
• Strategic Decisions:
• Aligning long-term organizational strategies with controlling mechanisms to
ensure consistency.
• Tactical Decisions:
• Determining specific corrective actions or adjustments needed at a
departmental or functional level.
6. Types of Controls:
• Feed-forward Controls:
• Implemented before the actual work takes place to prevent potential
problems. It focuses on identifying and mitigating risks beforehand.
• Concurrent Controls:
• Executed during the actual execution of tasks to ensure that activities are on
track as planned.
• Feedback Controls:
• Applied after the completion of tasks to review performance and identify
areas for improvement based on past outcomes.
7. Types of Control Mechanisms:
• Financial Controls:
• Involves monitoring financial metrics, budgetary controls, cost controls, and
financial performance evaluation.
• Information Controls:
• Focuses on the accuracy, reliability, and accessibility of information critical for
decision-making.
• Benchmarking of Best Practices:
• Comparing the organization's performance metrics against industry best
practices to identify areas for improvement.
8. Significance of Controlling:
• Performance Improvement:
• Facilitates continuous improvement by identifying inefficiencies and areas
needing enhancement.
• Goal Achievement:
• Ensures that organizational objectives are met effectively and efficiently.
• Adaptation and Flexibility:
• Allows organizations to adapt to changing circumstances by adjusting their
strategies and operations.
9. THANK YOU
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies ,
Kopargaon
