Question

‘Memo Builders’ was constructing a five star hotel for a leading hotel chain. The hotel had to be given possession by next year but the construction of the hotel was running six months behind schedule. The Chief Executive Officer of ‘Memo Builders’ was concerned as Memo Builders was known for its quality and timely completion of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and reported to the Chief Executive Officer that inspite of huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective. Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers with attractive wages to ensure that the deadline is met.

1. Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
2. Also explain any two points of importance of the function of management identified in (a) above. 

Answer 1

1. The scenario identifies controlling as the role of management. Controlling involves keeping an eye on performance, comparing it to objectives, and making adjustments as necessary to effectively reach objectives.
   1. Comparing Actual Performance with Standards: 'The hotel had to be given possession by next year but the construction of the hotel was running six months behind schedule'.
      This kind of comparison will highlight the difference between the planned and actual outcomes.
   2. Analysing Deviations: 'Nitin investigated and reported to the Chief Executive Officer that inspite of huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective'.
      Once the deviations that require managerial attention have been identified, their reasons must be examined. Deviations could have several.
   3. Taking Corrective Action: 'Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers with . attractive wages to ensure that the deadline is met.' 
      This finishes the process of controlling. Disturbances are exposed by contrasting actual performance with predetermined benchmarks. Defects must be eliminated by the remedial or corrective activity. In this case, It includes modifications to machinery, materials, rules, and processes as well as working practices. 
2. Importance of controlling: 
   1. Accomplishing organizational goals: The monitoring role tracks the organization's progress toward its objectives, highlights any deviations, and recommends corrective steps.
   2. Judging accuracy of standards: Management can confirm the accuracy and objectivity of the standards established with the help of a strong control system.
   3. Making efficient use of resources: A manager aims to minimize resource waste and spoilage by putting control. Every task is carried out in line with established norms and requirements.
   4. Improving employee motivation: An effective control system makes sure that workers are aware of their responsibilities and the performance standards that will be used to evaluate them.