Process of Controlling

Controlling as a management function involves following steps:

Establishment of standards- Standards are the plans or

the targets which have to be achieved in the course of

business function. They can also be called as the criterions

for judging the performance. Standards generally are

classified into two-

Measurable or tangible - Those standards which can

be measured and expressed are called as measurable

standards. They can be in form of cost, output,

expenditure, time, profit, etc.

a.

Non-measurable or intangible- There are standards

which cannot be measured monetarily. For exampleperformance

of a manager, deviation of workers,

their attitudes towards a concern. These are called as

intangible standards.

b.

Controlling becomes easy through establishment of these

standards because controlling is exercised on the basis of

these standards.

1.

Measurement of performance- The second major step in controlling is to measure the performance.

Finding out deviations becomes easy through measuring the actual performance. Performance levels are

sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as it can be

expressed in units, cost, money terms, etc. Quantitative measurement becomes difficult when performance

of manager has to be measured. Performance of a manager cannot be measured in quantities. It can be

measured only by-

Attitude a. of the workers,

b. Their morale to work,

c. The development in the attitudes regarding the physical environment, and

d. Their communication with the superiors.

It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.

2.

Comparison of actual and standard performance- Comparison of actual performance with the planned

targets is very important. Deviation can be defined as the gap between actual performance and the planned

targets. The manager has to find out two things here- extent of deviation and cause of deviation. Extent of...