The next step is comparing the levels of performance against expectations. A common form of comparison is an audit - the examination and verification of records and supporting documents. Two common forms of audit include:. To the extent that they serve as leading, lagging, and pacing performance metrics, they enable managers to take corrective action on any deviations from goals before too much damage has been done.
The next step is to take necessary corrective action when performance deviates negatively from performance objectives. Corrective action can involve motivating performance or adjusting standards. This necessarily requires a clear understanding of what gave rise to the deviations from standards. Organizations increasingly employ performance management systems to implement the Management Control Process.
The second main step in controlling is the measurement of performance. Gauging deviations from the planned measures is easier for measurable standards of performance as they can be quantified in units, cost, money terms, etc. However, non-measurable or intangible standards of performance are difficult to gauge.
Qualitative assessment becomes a challenge, especially while the performance of manager needs to be measured. After the actual output is determined it is compared and contrasted to the standards that we have established. This step is central to the entire process of controlling as the deviations from the plan is identified during this step. Deviations can be referred to all those factors present in the actual output that prove distinct and different from the established standard.
Depending upon the nature of distinction, deviations are classified either as Positive or Negative Deviations. In the above example, if the management was able to get the plans ready, get the finances ready and also get the due permission from the authorities and materials were organised for the commencement of construction, it will be a positive deviation.
Positive deviations thus as will be understood from the illustration is when the conditions of the standard are surpassed and the output goes ahead to materialize more factors relevant to the central plan, in this case getting permits and materials. In our case it would be the management not being able to procure the finances. After identifying the deviation, the manager should think about various causes which actually lead to this deviation.
The causes may include incorrect planning, coordination lapses, defective implementation, ineffective communication and inefficient supervision etc.
Mere identification of deviation will not be of any consequence to a business when it is either incapable or unwilling to take effective remedial actions. Remedial actions would include a sum total of all efforts taken to solve the deviations identified. The main object of remedial actions would be Negative deviations. However positive deviations do come under the ambit of this step. This happens when the management is overdoing itself. For instance, if the management were to procure furniture for the Hotel too while it was supposed to only make a plan and organize funds then such an act even though positive would not be in the best interest as the furniture will undergo wear and tear by the time the hotel is constructed and let open to the public.
However such instances are rare and it is negative deviations that this step is concerned more with. Remedial actions for negative deviation would be changing the approach of the fund mobilizing team, consulting a better and more punctual architect etc. Last but not least is the step of review or follow up. It involves ensuring that the remedial actions so taken are bearing fruit and are effective. This step would probably involve ensuring that the architect newly hired is giving regular updates, the newly reorganized funding campaign is working in the earnest etc.
I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. Controlling always look to future so that follow-up can be made whenever required. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless.
Planning presupposes controlling and controlling succeeds planning.
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