Control and its Nature

1. PRINCIPLES OF
MANAGEMENT
BY:
NAME . R YOGA
ROLL NO 21BBP059

2. COMPARISON OF ACTUAL PERFORMANCE WITH SET
STANDARDS
• Control means the power or authority to direct, order or restrain. It also means
comparing actual perfor-
• mance with the standard level of performance. In the context of a business
organization, control may be
• defined as "comparing operating results with the plans, and taking corrective action
when results deviate
• from the plans". Thus, control is a mechanism to guide workers and machines to
follow a pre-determined
• course. It implies the duty of manager to monitor and correct the deviations in
performance of work andof the workers placed under his charge.

3. • Predetermined plan of action and mechanism to monitor performance and correct
deviations
• Control function of a manager will deliver results only if there is a clear-cut plan of
action to be per-
• formed and a mechanism to measure the results of operations to detect deviations
from standard
• performance and apply corrective measures.
• As a plan is put into operation, it becomes necessary to check the performance of
certain key fac-
• tors at key points, and at key times. On the basis of results observed in monitoring,
the manager will
• know if the work is proceeding along the right lines and at the right speed. In case
of any deviations
• anywhere, he takes necessary corrective action and ensures that the same
deviations do not occur
• again.

4. CONTROL FUNCTION
• to exercise control over its funds management, nearly every organization prepares a financial budget.
• Based on the sales forecast, a manufacturing organization, for èxample, will determine the amount d
• money to be allocated for various manufacturing operations needed to be undertaken by the facior,
phen, as the work proceeds, every department is asked to send regular feedback on the sums spent
bvil.
• Obviously, there will be no need to take corrective action if the expenditure incurred by each
departmen
• is as per the allocations made to it, and the expenditure has produced desired results.

5. • the control process tends to work like a thermostat (a device fitted in
refrigerator or electric iron to
• hep its temperature steady). The thermostat is set at a particular level of
temperature. The machine
• Wed with it gets the electric current only so long as the temperature remains
above/below thejeset level.
• The moment the temperature reaches the set level, the thermostat moves
into action
• Ind supply of the current is automatically switched off. The supply of current
is resumed when the
• Imperature deviates from the pre-set level. But after restoring the
temperature back to the pre-set
• vel, the supply of current is again shut off.

6. • Planning of objectives and action-plans to achieve
• Planning is essential to make control system meaningful. Planning involves setting of objectives to be
• accomplished and the action-plans that will enable accomplishment of those objectives. The objectives
• and the action-plans should both be specific. Then alone the manager will know if the action is pro-
• ceding on the right lines, and whether the objectives achieved are as per the plans.
• Control is concerned with detecting deviations from the predetermined objectives and the course
• faction to achieve them.

7. • Clear-cut course of action to achieve objectives
• the duty of a manager to direct and guide his subordinates to perform their tasks along the desired
• lines. He must tell them what to do, and teach and lead them into doing it. Certainly, he should not
• assume the role of a fire brigade which moves into action only when fire actually breaks out.
• But deviations may occur in spite of the best of guidance from the manager. in such a situation, the
• manager should be quick to act. And he should be quick not only in identifying deviations, but also in
• correcting them.
• At times, deviations may highlight some faults or deficiencies in the process of planning itself. If
• 0, the manager should not delay modification or even alteration of the plans.

8. • Delegation of matching authority over organizational resources
• Control implies delegation of authority - authority to monitor performance and detect deviations and
• "hority to take necessary and timelv corrective action. it would be impossible for a manager/o exer
• This control in the absence of proper authority.
Let us take an example. Suppose the sales manager of an organization is given the task of achiev.
• ing specific sales targets in a market within a specified period.
• (a) To appoint and direct salesperson;
• (b) To launch print and electronic media advertising;
• (c) To offer inducements to salespersons and dealers; and
• (d) To reward salespersons who perform their tasks well and on time and punish those who do no
• Without such authority, one cannot blame the sales manager for failure to achieve the desired tar
• gets as one cannot blame a bullet-less pistol for not firing.

9. • Regular and complete performance-related feedback
• For control to be effective, there must be accurate and prompt flow of information
to the manager.
• Accurate reports on performance at the level of operative workers must be
available to him on a
• regular basis. And instructions from him regarding necessary corrective action
should promptl
• reach the persons concerned.
• The system of communication to a manager is called "feedback". An effective
feedback enables
• the manager to know where and when deviation from any plan has taken place. He
can then orde-
• prompt corrective action.

10. • Time is of the very essence of feedback. Subordinates should regularly keep their manager posted
• with the progress of work at their levels. Feedback given by subordinates should be to the point, giving
• all important relevant information. It should avoid mention of irrelevant details as it would delay the
• feedback and necessary corrective action by the manager.
• .THE CONTROL PROCESS
• (1) Determination of SMART standards
• A standard means a benchmark. It means a specific set of factors relating to any organization, indi
• viduals, or groups of individuals working in departments or divisions of an organization. A standard
• should be SMART, meaning Specific, Measurable, Achievable, Realistic and Time-based.

11. • Standards may be for organization as also for its departments/divisions
• The overall objectives of an organization represent the standards in respect of organizational perfor-
• mance as a whole. These objectives are further divided into specific objectives for individual depar
• ments/divisions of the organization which become standards of performance for respective depart-
• ments/divisions. The departmental goals are further split into standards as regards quality of goods
• and services, production cost, time standards, sales quotas, schedules, budgets, etc.

12. • TANGIBLE STANDARDS OF PERFORMANCE
• (1) Specific and measurable standards of performance
• A tangible standard of performance means a standard which is specific, definite and clearly understand-
• able and it is possible for the persons concerned to know when the standard has been reached. These
• may be as follows:
• (2) Physical standards
• Physical standards are non-monetary standards which are commonly applied at operating levels, suc
• as in the factory or work shop, where raw materials are used, hired labour is at work, services

13. • CHARACTERISTICS OF AN IDEAL CONTROL SYSTEM
• An ideal system of control is one that makes the controlling function easy, effective and smooth. The
• following are the characteristics of an ideal control system:
• (1) System should suit the nature, needs and circumstances of a given situation
• No two firms can be exactiv alike in every respect. Likewise, no two areas of activity even in the same
• organization can be similar. Therefore, a control system that is good for a small firm may be ina.
• equate in the case of a large firm. In the same way, a firm using machine-based methods of production
• will require a different control system as compared to the one which relies on labour-intensive meth.
• Quick reporting or feedback on performance
• Time is an important element in enforcing a control system. Subordinates should keep their respective
• superiors posted with the feedback as to performance of work at their levels. Delay in sending reports
• might hurt the purpose of control system.
• (3) Anticipatory or forward-looking control
• A good control system is one that makes it possible to think of deviations even before they have taken place
• As far as possible, it should try to prevent, rather than remedy, the situations arising from deviations.

14. • Pragmatic and proactive in operation
• The control system should concern itself with actual results and view things in a matter-of-fact and practical
manner. It can do so only when it has enough flexibility to be adjusted and adapted to suit the needs of the
situation on hand.
• Objective and impersonal to operate
• A control system can be effective only when it is objective and impersonal, and not subjective and
• arbitrary. For this, it is necessary that the standards to judge the actual performance are objectiveclear,
definite and stated in numerical terms.
• Economical to operate
• A good control system is one that can be easily installed and inexpensively maintained. What an
• organization will spend to operate its control system will largely depend on what benefits it expectto derive
from it.
• Simplicity in operation
• To be effective, a control system should be easy to understand and operate. A complicated system wil
• only create problems for the operative workers and defeat its very purpose.