Question

Explain the various steps involved in the process of control.

Explain the following as steps in the process of controlling:

1. Setting performance Standards
2. Measurement of actual performance

Describe briefly the steps in the process of controlling.

Explain the first two steps in the process of controlling.

‘Analysing deviations’ is an important step in the process of controlling. It is therefore important to focus on key result areas which are critical to the success of an organization. Identify and give the meaning of the concept discussed above.

Explain the following as steps in the process of controlling:

1. Analysing Deviations, and
2. Taking Corrective Action

Explain -

1. Critical point control
2. Management by exception with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

Explain Critical point control and Management by exception, as an important part of ‘Atlalysing Deviations’ a step in the process of controlling.

A production manager was given a standard toy train. He was asked to produce similar other toy trains. What control process would he have followed?

Write a short note on steps involved in the process of control.

Answer 1

Controlling is a systematic approach of managing and controlling the organisational actions. The following are the steps involved in the controlling process.

1. Setting Standards: Setting up of standards involves developing the benchmarks against which the actual performance is to be measured. The standards can be set in qualitative as well as quantitative terms. Qualitative benchmarks can be in the form of improving coordination in work, higher goodwill or increased motivation level of employees, etc. For example, to improve the motivation level among employees, standard can be set in terms of number of initiatives taken. Quantitative benchmarks can be in the form of sales targets, units to be produced or time to be spent on a particular action, etc.
2. Measuring Actual Performance: Once the standards are set, the next step is to measure the actual performance of the activities. This may be done through various techniques such as personal observation, checking the sample, performance reports, etc. The checking should be done in an exact and reliable manner so that correct measurement is taken for comparison. Measurement can be done after the completion of an activity as well as while it is in progress. For example, while assembling small parts of a bigger machine, the parts can be checked before assembling. This would ensure the continuous monitoring of the small parts as well as the final machine.
3. Comparing the Performances: Performances once measured are then compared with the set standards. Such a comparison helps in assessing the deviations in the work. Thereby, it guides the managers in taking the necessary steps to improve the performances. These comparisons are easier when they are in quantitative terms. For example, efficiency in work in terms of cost incurred can be measured against the standard cost.
4. Analysing Deviation: Every organisation faces deviations when comparing the actual performance with the pre-developed standards. Thus, it is important to find the deviations that are in the permissible range. It is said that deviations in key areas should be attended first. For analysing the deviations the managers generally use ‘Critical Point Control’ and ‘Management by Exception’.
5. Corrective Measures: When deviations go beyond the admissible limits, there arises a need for the management to take corrective actions. This is the last step of controlling which aims at correcting the deficiencies of the organisation so that the errors do not occur again. For example, if the production target was not met duly, appropriate corrective actions such as training the workers or updating the machinery for working, etc. can be taken.