What is the Control Function of Management?The controlling function of management generally means organizational control. That is, its a process by which an organization (through its managers) influences its sub-units and members in the process of attaining organizational goals and objectives. Show
Back to: BUSINESS MANAGEMENT Because organizations develop standards and goals, controlling necessarily ensures that individual, group, and organizational performance does not deviate from standards. Controlling should not be viewed as negative - such as manipulative of an individuals personality, values, attitudes, or emotions. Rather, managers simply make certain employee activities are consistent with achieving organizational goals and objectives. Monitoring and Controlling PerformanceControlling concerns monitoring and influencing several types of performance:
As such, managers at all levels of the organization are involved in the controlling process. Controls are generally considered to be part of a system or process to make certain processes and rules are followed and results are being obtained. The effect of controls, when properly designed, is to improve company performance. What is the Process for Management Control?Controlling consists of the following steps: Performance StandardsThe first step is to establish performance standards. These standards should be in the form of goals and objectives. These should flow from the organizations mission and vision. The standards should be capable of assessment - specific and measurable. Measure PerformanceThe next step is to measure performance. The method for measuring performance will vary based on what type of performance is being measured. When measuring performance based upon types of metrics:
Compare Actual Performance Against StandardsThe next step is comparing the levels of performance against expectations. A common form of comparison is an audit - the examination and verification of records and supporting documents. Two common forms of audit include:
To the extent that they serve as leading, lagging, and pacing performance metrics, they enable managers to take corrective action on any deviations from goals before too much damage has been done. Corrective ActionThe next step is to take necessary corrective action when performance deviates negatively from performance objectives. Corrective action can involve motivating performance or adjusting standards. This necessarily requires a clear understanding of what gave rise to the deviations from standards Controlling across various organizational units or functions can become extremely complex. What is a Management Performance System?Organizations increasingly employ performance management systems to implement the Management Control Process. Some of the most commonly known Management Performance Systems include:
Some other common approaches include:
Advantages and Disadvantages of Organizational ControlsOrganizational controls provide numerous advantages:
The primary disadvantages include:
Which of the following functions of management involves comparing actual results with budget result?Comparison of actual results with the planned one is considered to be an example of controlling.
Which managerial function involves comparing the results to the plan?Answer: The control function evaluates whether an organization's plans were implemented effectively and often leads to recommendations for the future. Many organizations compare actual results with the initial plan (or budget) to evaluate performance of employees, departments, or the entire organization.
Which of the management functions refers to comparing expected results to actual performance?Controlling. Controlling is a management function in which the predetermined standards are compared with actual performance of the business and taking corrective measures in case of deviation.
Which of the following functions of management involves taking actions to implement the plan?The organizing function consists of taking the previously created plan and putting it into action. Key activities in this function include: Identifying all of the necessary steps of the project. Determining who will complete the actions and deploying those resources to work.
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