Steps in Control Process

Control in Management refers to the process of monitoring and evaluating performance against established standards and objectives. It involves setting performance benchmarks, measuring actual outcomes, comparing them with targets, and taking corrective actions as needed. The ultimate goal of control is to ensure that organizational activities align with strategic goals, thereby enhancing efficiency and effectiveness.

Control Process involves the following Steps as shown in the figure:

The control process involves several key steps:

1. Establishing Standards

Standards serve as benchmarks for evaluating performance in business functions and are classified into two categories:

• Measurable (Tangible) Standards: These standards are quantifiable and expressed in terms of cost, output, time, profit, etc.
• Non-Measurable (Intangible) Standards: These cannot be quantified monetarily. Examples include manager performance, employee attitudes, and workplace morale.

Establishing these standards simplifies the control process, as control is exercised based on them.

2. Measurement of Actual Performance

The second step is assessing actual performance levels to identify deviations from established standards. Measuring tangible standards is generally straightforward, as they can be quantified easily. However, evaluating intangible standards, such as managerial performance, can be challenging and may rely on factors like:

• Employee attitudes
• Workforce morale
• Improvements in the work environment
• Communication with superiors

Performance measurement may also be supported by various reports (weekly, monthly, quarterly, or yearly).

3. Comparison of Actual Performance with Standards:

Comparing actual performance against planned targets is crucial. A deviation is defined as the gap between actual and planned performance. Managers need to identify two key aspects:

• Extent of Deviation: Is the deviation positive, negative, or aligned with expectations?
• Cause of Deviation: Understanding why deviations occurred is vital for effective management.

Managers should focus on critical deviations while overlooking minor ones. For instance, a 5-10% increase in stationery costs may be considered minor, whereas a continuous decline in monthly production signifies a major issue.

Common causes of deviations:

• Faulty planning
• Lack of coordination
• Defective plan implementation
• Ineffective supervision and communication

4. Taking Corrective Actions

After identifying the extent and causes of deviations, managers must implement remedial measures. They have two options:

1. Corrective Measures: Address the deviations that have already occurred.
2. Revision of Targets: If the corrective actions do not align actual performance with planned targets, managers may choose to adjust the targets.