Definition of Control Process
Controlling is the process of assessing and modifying performance to ensure that the company's objectives and plans for achieving them are met.
Control is the final role of management. The controlling function will become obsolete if other management functions are properly carried out. If there are any problems in the planning or actual performance, control will be required.
Controlling ensures that the proper actions are taken at the appropriate times. Control can be thought of as a process through which management ensures that the actual operations follow the plans.
The company's managers check the progress and compare it to the intended system through managing. If the planned and real processes do not follow the same path, the necessary corrective action can be implemented.
The control process is the careful collection of information about a system, process, person, or group of people which is required to make necessary decisions about each of the departments in the process. Managers in the company set up the control systems which consist of the four prior key steps which we will discuss in the later section.
The performance of the management control function is important for the success of an organization. Management is required to execute a series of steps to ensure that the plans are carried out accordingly. The steps that are executed in the control process can be followed for almost any application, also for improving the product quality, reduction of wastage, and increasing sales.
What is Controlling?
The Controlling process assures the management that the performance rate does not deviate from its standards.
The controlling Process consists of five steps:
Setting the standards.
Measuring the performance.
Comparing the performance to the set standards
Determining the reasons for any such deviations which is required to be paid heed to.
Take corrective action as required. Correction can be made in regards to changing the standards by setting them higher or lower or identifying new or additional standards in the department.
Elements and Steps of Control Process
Establishing Performance Measuring Standards and Methods
Standards are, by definition, nothing more than performance criteria. They are the predetermined moments in a planning program where performance is measured so that managers may receive indications about how things are doing and so avoid having to monitor every stage of the plan's execution.
This simply means setting up the target which needs to be achieved to meet the organizational goals. These standards set the criteria for checking performance. The control standards are required in this case.
Standard elements are especially useful for control since they help develop properly defined, measurable objectives.
Measuring the Performance
Performance against standards should be measured on a forward-looking basis so that deviations can be discovered and avoided before they happen. Appraising actual or predicted performance is relatively simple if criteria are properly drawn and methods for determining exactly what subordinates are doing are available.
The actual performance of the employee is then measured against the set standards. With the increase in levels of management, the measurement of performance becomes quite difficult.
Determining if the Performance is up to par with the Standard
In the control process, determining if performance meets the standard is a simple but crucial step. It entails comparing the measured results to previously established norms. Managers may assume that "all is under control" if performance meets the benchmark.
Comparing the degree of difference between the actual performance and the set standard.
Developing and Implementing a Corrective Action Plan
This phase becomes essential if performance falls short of expectations and the analysis reveals that corrective action is required. The remedial measure could include a change in one or more of the organization's functions.
This is being initiated by the manager who corrects any sorts of defects in the actual performance.
Types of Control
There are five different types of control:
Feedback Control: This process involves collecting the information on which the task is being finished, then assessing that information and improvising the same tasks in the future.
Concurrent control (also known as real-time control): It investigates and corrects any problems before any losses arising. An example is a control chart.
This is the real-time control, which checks any problem and examines the same to take action before any loss has been caused.
Predictive/ feedforward control: This type of control assists in the early detection of problems. As a result, proactive efforts can be done to avoid a situation like this in the future. Predictive control foresees the problem ahead of its occurrence.
Behavioral control: This is a direct assessment of managerial and staff decision-making rather than the consequences of those decisions. Behavioral control, for example, sets incentives for a wide range of criteria in a balanced scorecard.
Financial and non-financial controls: Financial controls refer to how a firm manages its costs and spending to stay within budgetary limits. Non-financial controls refer to how a company manages its costs and expenses to stay within budgetary constraints.
Features of Controlling
The features of controlling are discussed point-wise to give a clear insight into the concept. The features are as follows:
Controlling helps in achieving organizational goals.
The process facilitates optimum use of resources.
Controlling judges, the accuracy of the standard.
The process also sets discipline and order.
The controlling process motivates the employees and boosts the employee morale, eventually, they strive and work hard in the organization.
Controlling ensures future planning by revising the set standards.
This improves the overall performance of an organization.
Controlling minimizes the commission of errors.
Advantages of Controlling
The organization inculcates the process of controlling due to its undying advantages. The advantages of control are as follows:
The Controlling Process saves time and energy.
This allows the managers to concentrate on important tasks, and also allows better utilization of the managerial resource.
Assures timely and corrective action to be taken by the manager.
In contrast to this, controlling suffers from the disadvantage that the organization has no control over the external factors that also affect the organization. The controlling Process becomes a costly affair, especially for small companies.
FAQs on The Control Process: Steps and Importance
1. What is the control process in management?
The control process in management is a fundamental function that involves setting standards, measuring actual performance, and taking corrective actions to ensure that an organisation's activities are aligned with its goals. It acts as a feedback mechanism, helping managers monitor progress and make necessary adjustments to achieve desired outcomes efficiently and effectively.
2. What are the key steps involved in the controlling process?
The controlling process follows a systematic sequence to ensure organisational goals are met. As per the CBSE/NCERT curriculum for the 2025-26 session, the main steps are:
- Setting Performance Standards: This involves establishing clear, measurable criteria or benchmarks against which actual performance will be compared.
- Measuring Actual Performance: The next step is to measure the work done in an objective and reliable manner.
- Comparing Actual Performance with Standards: This step involves comparing the measured performance against the predetermined standards to identify any deviations.
- Analysing Deviations: Management must determine the cause and significance of any differences, focusing on critical points of control.
- Taking Corrective Action: This is the final step where measures are taken to address the deviations and bring performance back in line with the standards, or revise the standards themselves if necessary.
3. What is the importance of the controlling process for an organisation?
The controlling process is vital for organisational success for several reasons. Its main importance lies in:
- Achieving Organisational Goals: It keeps the organisation on the right track and ensures that activities conform to plans.
- Judging Accuracy of Standards: It provides a systematic way to check whether the standards set are accurate and realistic.
- Facilitating Optimum Use of Resources: By reducing wastage and spoilage of resources, it ensures that they are used in the most effective and efficient manner.
- Improving Employee Motivation: A good control system informs employees about their performance and helps them improve, which can boost morale.
- Ensuring Order and Discipline: It minimises dishonest behaviour and creates an atmosphere of order and discipline in the workplace.
4. How does the controlling function relate to the planning function in management?
Planning and controlling are deeply interconnected and often referred to as the 'inseparable twins' of management. Planning sets the goals and standards, while controlling ensures these goals are met. Without planning, there are no standards to control against, making the control function baseless. Conversely, without control, the planning process is incomplete because there is no way to monitor progress and ensure the plan is being executed properly. Controlling provides critical feedback that helps in revising and improving future plans.
5. What are performance standards and how are they set in the context of controlling?
Performance standards are the specific criteria or benchmarks established to measure actual performance. They serve as the foundation of the control process. Standards should be set in clear, specific, and measurable terms. They can be categorised as:
- Quantitative Standards: These are expressed in numerical terms, such as units produced, revenue to be generated, or cost to be incurred.
- Qualitative Standards: These relate to intangible aspects like customer satisfaction, employee morale, or brand reputation.
For standards to be effective, they must be meaningful, reasonable, and attainable for the employees.
6. Why is taking 'corrective action' considered a critical step in the control process?
Taking corrective action is the most critical step because it is the point where the control process translates into tangible results. Simply identifying deviations without taking action is a futile exercise. This step ensures that any negative trends are stopped and that performance is brought back into alignment with the set standards. Effective corrective action prevents the recurrence of problems, leading to continuous improvement and helping the organisation adapt to dynamic business environments.
7. What is the difference between feedforward and feedback control?
The primary difference between feedforward and feedback control lies in their timing and focus. Feedforward control, also known as predictive control, is proactive. It anticipates potential problems and takes action to prevent them from occurring. In contrast, feedback control is reactive. It measures the output of a completed activity and uses that information to correct future actions. While feedback control corrects issues after they have happened, feedforward control aims to avoid them altogether.
8. What are some common difficulties that can make a control process less effective?
An organisation can face several difficulties in implementing a control process. Common challenges include:
- Difficulty in Setting Standards: It can be challenging to set clear quantitative standards for activities related to job satisfaction or employee morale.
- Resistance from Employees: Employees may perceive control systems as a source of pressure or a tool for restricting their freedom, leading to resistance.
- Time and Cost: Implementing and maintaining a comprehensive control system can be a costly and time-consuming affair, especially for smaller organisations.
- Focus on External Factors: A control system primarily focuses on internal factors, but organisational performance is also significantly affected by external factors like government policies or competitor actions, which are beyond its control.
