Question

Controlling is a systematic process involving a series of steps. Explain these steps of Controlling.

Answer 1

1. Controlling is the process by which managers define the practical criteria for the activities to be completed in an organisation. They examine real performance and identify deviations from predetermined criteria. Analysing and identifying the causes of deviations allows for corrective measures to prevent future occurrences.
2. The steps of Controlling are as follows:
3. Establishing performance standards: Although creating goals and standards is part of the planning process, it is also vital for controlling. Controlling is to direct businesses towards their desired goals. Employees who are well-versed in a company's aim are more likely to be aware of it. Managers must convey the aims and objectives to their personnel clearly and without ambiguity. A collaborative organisation with a shared goal is more likely to thrive and expand.
4. Measuring actual performance against the set standards: Managers should immediately measure their performance against established standards after being informed of the goals. This assists in determining whether the plan is actually performing as intended. Managers are responsible for monitoring and evaluating implemented plans. Managers should be prepared to provide alternative plans or corrective steps if the original plan fails to meet expectations. This can only be accomplished if managers measure their actual performance. To evaluate performance, hire financial specialists and measure it in monetary terms. Controlling is crucial for identifying potential problems and taking timely actions to prevent losses.
5. Determining if the performance matches with the standard: It is critical to ensure that performance meets standards. It is a critical stage in controlling. In this step, the findings are assessed against the previously established standards.
6. Analyzing Deviation: Deviation refers to the difference between actual and projected performance levels. The management must determine two things: first, the magnitude of the deviation, and second, the cause of the departure. The manager must determine whether the variation is good or negative, and if the actual performance aligns with the standard.
7. Taking corrective action and re-evaluating the standard: To address discrepancies, corrective steps must be implemented. Taking correct actions can prevent future losses.