Control Definition

Control is a function of management that aids in error checking so that corrective measures can be taken. Controlling involves comparing a company's performance to its projected performance and taking corrective measures. It is done to reduce standard deviation and ensure the organization's stated objectives are achieved in the desired way.

Control Definition by Henri Fayol

Control in management comprises establishing standards, evaluating actual performance, and taking corrective action while making decisions. Control of undertaking includes ensuring everything is done per the adopted plan, in given orders, and established principles. Its goal is to draw attention to errors so that they can be fixed and prevented from happening again.

Characteristics of Control

1. Control is an ongoing activity.
2. It is a management process.
3. Planning and control go together.
4. Control saves time.
5. The standard of the company is met by control.
6. Control is a tool for carrying out organizational tasks.
7. Control measures performance against benchmarks.
8. Control highlights the execution procedure issue.
9. Control aids management in performance monitoring.

Nature of Controlling

Control is a management task that focuses on achieving objectives. Its main objective is to ensure that the organization's resources are utilized effectively and efficiently to achieve pre-established organizational goals. Control is an ongoing process. It indicates that the controlling process continues after a business compares its actual performance to its expected performance and implements corrective measures.

Importance of Controlling

1. Achieving organizational goals

Controlling is a goal-oriented activity since it seeks to ascertain whether the predetermined plans are carried out correctly and whether necessary progress has been made toward accomplishing the objectives. Using control, an organization can maintain a company's operation track, accomplish organizational goals effectively, and take corrective action as needed.

2. Evaluating the accuracy of standard

A company can verify whether they have accurately defined the standards using an efficient control method. Also, it aids in monitoring changes in the corporate environment and modifies the standards as needed.

3. Efficient resource management

Controlling aids a company in minimizing resource waste by ensuring that all of its operations are carried out in line with its established goals.

4. Increasing employees' motivation

By comparing a company's predetermined goals with its actual performance, the controlling process effectively defines the role of employees in advance. It implies that the employees will know in advanced that their performance will be judged, compared, and evaluated against the benchmarks. These pre-established objectives encourage them to perform better.

5. Maintaining order and discipline

A company's management can create a disciplined workplace culture with an effective control system. Also, controlling aids in maintaining constant watch over the workforce to reduce undesired behaviours like theft, corruption, fraud, etc.

Characteristics of an Effective Control System

1. Suitable

An effective control system must be suitable for the requirements and structure of the organization.

2. Simple

An effective control system must be simple to use and understand.

3. Economical

A control system's setup, implementation, and maintenance shouldn't be more expensive.

4. Flexible

A good control system should be flexible enough to change as internal and external conditions of the company changes.

5. Forward-looking

An effective control system should advance so managers can quickly identify deviations before they occur in the organization.

6. Objective

The organization's standards, performance evaluation methods, and corrective actions should be impersonal and objective.

Limitations of Controlling

1. Limited control on external factors

A company can track and oversee any changes to its production (internal factor), but it cannot control fast-changing technologies, governmental regulations, etc.

2. Quantitative standards are difficult to set up

It is challenging to quantify employees' behaviour, which makes it challenging for the company to evaluate employees' performance against standards.

3. Expensive affair

Controlling is costly because it needs measuring and reporting each employee's performance. Control involves a significant investment of money, time, and effort, so it is difficult for small businesses to apply such a costly system.

Controlling Process

The five stages of the controlling process are as follows:

1. Defined standards.
2. Performance evaluation.
3. Comparing performance against defined standards.
4. Figuring out the causes of any deviations that need to be considered.
5. Take the appropriate corrective action.

Importance of Feedback in Control System

All control systems are based on feedback. The manager uses feedback to improve a company's performance. Feedback might be formal or informal. The main goal of feedback is to use the past lesson to enhance performance in the future. Formal feedback is gathered from reports, financial accounts, statistics, written communication, etc. Informal feedback is gathered from a person's observations, casual chats, etc.