Controlling as a Management Function: Key Issues and Considerations

Controlling is a crucial management function that ensures that an organization’s activities are aligned with its goals and objectives. It involves setting standards, monitoring performance, identifying deviations, and taking corrective action to achieve desired outcomes. Several key issues are considered in the controlling process, as discussed below:

Setting and Monitoring Performance Standards

Establishing clear performance standards or goals is essential for effective controlling. These standards serve as benchmarks against which actual performance is measured. Performance standards can be quantitative (e.g., sales targets, production quotas) or qualitative (e.g., customer satisfaction, employee morale). Monitoring performance against these standards helps identify any deviations or variances that need to be addressed.

Gathering and Analyzing Performance Data

Controlling requires collecting relevant data and information about the organization’s performance. This data can include financial reports, sales figures, production statistics, customer feedback, and employee performance evaluations. Analyzing this data helps identify trends, patterns, and areas of concern that require attention. Performance data can be gathered through various methods, such as financial statements, performance reports, customer surveys, and employee feedback.

Identifying Deviations and Taking Corrective Action

Controlling involves identifying any deviations from the established standards and taking corrective action to address them. Deviations can be positive (exceeding standards) or negative (falling short of standards). When deviations occur, managers need to investigate the causes and implement appropriate corrective measures. This may involve adjusting processes, reallocating resources, providing additional training, or implementing new strategies to ensure that performance aligns with the desired goals.

Ensuring Compliance with Policies and Procedures

Controlling also involves ensuring that employees and departments adhere to established policies, procedures, and regulations. This includes monitoring compliance with ethical standards, legal requirements, safety protocols, and quality control measures. Compliance with policies and procedures helps maintain order, consistency, and accountability within the organization. It also helps mitigate risks and ensure that the organization operates in accordance with its values and objectives.

Communication and Feedback

Effective communication is crucial in the controlling function. Managers need to provide feedback to employees regarding their performance, highlighting areas of improvement and recognizing achievements. Regular communication helps keep everyone informed about the organization’s goals, progress, and any necessary adjustments. Open communication and feedback foster a culture of accountability and continuous improvement within the organization.

In conclusion, controlling is a critical management function that involves setting standards, monitoring performance, identifying deviations, and taking corrective action to achieve organizational goals. By effectively addressing these key issues, organizations can ensure that their activities are aligned with their strategic objectives and that they operate efficiently and effectively.

References:

1. Controlling: Management Function, Principles, and Examples. (n.d.). Study.com. https://study.com/learn/lesson/controlling-management-function-principles-examples.html
2. Lloyd, R., & Aho, W. (2020). Controlling. In The Four Functions of Management. FHSU Pressbooks. https://fhsu.pressbooks.pub/management/chapter/controlling/
3. Controlling – A Function of Management. (2023, November 27). Taxmann. https://www.taxmann.com/post/blog/controlling-a-function-of-management/

FAQs

What is the purpose of controlling in management?

Controlling in management aims to ensure that an organization’s activities are aligned with its goals and objectives, and that resources are used efficiently and effectively.

What are some key issues considered in controlling?

Key issues in controlling include setting performance standards, monitoring performance, identifying deviations from standards, taking corrective action, and ensuring compliance with policies and procedures.

Why is setting performance standards important in controlling?

Setting clear performance standards provides a benchmark against which actual performance can be measured, allowing managers to identify areas where adjustments or improvements are needed.

How does monitoring performance help in controlling?

Monitoring performance involves collecting and analyzing data to track progress towards goals. It helps identify deviations from standards and provides a basis for taking corrective action.

What is the role of corrective action in controlling?

Corrective action involves taking steps to address deviations from performance standards. It may include adjusting processes, reallocating resources, providing training, or implementing new strategies to improve performance.

Why is ensuring compliance with policies and procedures important in controlling?

Ensuring compliance with policies and procedures helps maintain order, consistency, and accountability within an organization. It also mitigates risks and ensures that the organization operates in accordance with its values and objectives.

How does communication and feedback contribute to effective controlling?

Effective communication and feedback are crucial in controlling. Managers need to provide feedback to employees regarding their performance, highlighting areas of improvement and recognizing achievements. This fosters a culture of accountability and continuous improvement.

What are some common challenges in implementing effective controlling systems?

Common challenges include resistance to change, lack of clear performance standards, inadequate data collection and analysis, and difficulty in taking timely corrective action.