EMG WEEK 10 Controlling Function

QUIZ 2 EMG WEEK 8-13

controlling function

management activity that ensures organizational activities are aligned with the plan.

Planning

sets the direction

organizing

provides the structure

leading

inspires people

controlling

guarantees that results are achieved as intended.

controlling

A systematic process where managers compare actual performance with predetermined standards, identify variances, and implement corrective measures.

controlling

It ensures coordination among functions and that all efforts move towards organizational goals.

Koontz & O’Donnell

“Controlling is the measurement and correction of performance to ensure that enterprise objectives and the plans devised to attain them are being accomplished.”

Henry Fayol

Saw control as verifying whether everything occurs in conformity with the plan, instructions, and principles.

Goal Attainment

1 of 6 Purpose of Controlling

makes sure objectives are achieved as planned. Ex: A telco aiming to reduce dropped calls from 3% to 1% uses network performance audits to track progress.

Measurement of Progress

2 of 6 Purpose of Controlling

managers can see how far operations have moved toward targets. Ex: A manufacturing firm measures daily output against daily production quotas.

Error Detection and Correction

3 of 6 Purpose of Controlling

deviations are discovered early, saving costs and effort. Ex: A bank detecting unusual transaction volumes immediately investigates fraud.

Efficient Use of Resources

4 of 6 Purpose of Controlling

prevents misuse or wastage of manpower, materials, and finances.

Consistency and Quality Control

5 of 6 Purpose of Controlling

ensures uniform standards. Ex: Toyota’s “Zero Defect Policy” keeps product quality stable worldwide

Adaptability and Learning

6 of 6 Purpose of Controlling

controlling highlights what’s not working, pushing organizations to learn and adapt.

Establish Standards

1 of 5 Controlling Process

Standards are the benchmarks or targets. They can be: § Quantitative – output per worker, error rate, profit margin. § Qualitative – customer satisfaction, employee morale. o Example: “Customer wait time must not exceed 3 minutes.”

Measure Actual Performance

2 of 5 Controlling Process

Tools include performance reports, audits, MIS dashboards, KPIs, and direct observation. o Example: HR monitors average response time for employee queries via system logs.

Compare Performance with Standards

3 of 5 Controlling Process

Analyze deviations: § Positive deviation – performance exceeds standards (opportunity for best practice). § Negative deviation – performance is below expectations (problem requiring attention). o Example: Actual production = 950 units/day vs. Standard = 1,000 units/day → 50-unit shortfall.

Take Corrective Action

4 of 5 Controlling Process

Decide interventions to eliminate variances: § Immediate correction – overtime, adding resources, reallocation. § Systematic correction – redesigning processes, retraining employees, investing in technology. o Example: Call center exceeding wait times introduces a callback system.

Feedback and Continuous Improvement

5 of 5 Controlling Process

Information gained is used to improve future standards and planning. o Example: A hospital updates protocols after a control review shows long emergency wait times.