SUCONCEPT @ PROCESS ©. 1: Define mi : i ture and elements. i ial control and explain its nal ; ee Contr of managerial Control, Control is a fundamental managerial func, ane once? for fanchons such as planning, organisation and direction: Plans do ng Tend to automatic accomplishment. With a view to compltte {he P chive isati bjectives, managers have to exercise control. 5 organisationa! Ye ee and O'Donnell, “Managerial control implies the mensurenent accomplishment against the standard and the correction of deviations to assure attainment oy jectiv rding to plans.” - i poe wand of Robe “Management control is the process by which managers ly and efficiently in the accomplishment of ay obj assure that resources are obtained and used effectivel In the words of Robert N. Anthony, ion’s objectives.” - ih OS conte” may be defined as the continuous process of verifying whether actions are being taken as planned and taking corrective action to,ensure that events conform to plans as closely as possible. < coe : Nature of control. The main characteristics of managerial control are given below — (@ Control process is universal. All managers, at different levels in the management hierarchy, perform this function, in relation to the work done by their subordinates. d fies Nes (i Control is a continuous process. As long as an organisation exists, some sort of control is required. (ii) Control is forward looking. The effective control system should be forward looking. Control_aims at future because one can control future events and not the past. z (i) Control involves measurement. It requires measuring results against pre- established targets and review of the outcome of activities. (0) Management control is a system consisting of certain interdependent elements (for example, goals or standards, sensory device to monitor events etc. (vi), Control is goal oriented. Control is a means to achieve desired objectives. It is'a process which guides activity towards predetermined goals. (vif) Dynamic process. Control is a dynamic process. It is flexible. + (viii) Control does not curtail the rights of individuals. To some people, control is opposite of freedom. It is not so. It is a preventive action so that losses may be avoided in future. It is, in fact, an act of guidance. Elements of control: : 1. Planning. Control is designed to achieve certain objectives. Planning involves the setting of objectives to be accomplished and the actions required to attain them. Without planning there is nothing to control. Controlling is not possible without planning. This is so because the very first step of the controlling process which comes with the determination of the standard of performance, is nothing but an aspect of the planning process i. it is a plan which lays down standard of performance. Planning serves as the basis for control. Control, in turn, helps 178UNIT V: CONTRO; TROL ure that plans are bein, 8 im, Plemen 179 10 en ip betws a tionship between plannin, te elation ion feedback. Cae end control, ‘d properly. There is a rect is a reciprocal info! ; 2 Perf mnance with planned perform, Process » ‘here is any. mistake Dea take or deviation from the plan or objective. Corrective actions tive sy involve setting of new ; e coals, F improvement in staffing and-new Saat oa in organisation structure, irecting. : Tae paeths aerianh janning is the basis, action is the essence, delegation is the k 1e key and information es side ‘to control. js the Suite essence of control is action.” Explain, Qo ; a . Control is a very basic and fundamer ‘i Aorement and correction of actual p Seen of management and it means meastives of an enterprise are well achieved. Brak Ka enstire that the pre-determined obj ain feual performance against the ed a ee also defined control as, “a process equate ng ogress and satisfactory performance.” Wie te view to insuring adequate Prcyarts whenever a Manager assigns dui ut control, a manager cannot perform his jo?” 5 igns duties and thus delegates authorit i subordinates. He has to exercise control over the actions of all Cee ied, He comparison ‘of actual performance against the standards res i his subordinates. The parison Guide for further action. This may led to ea ee ia pl which pene Action is the essence of 2a It meg b cf seen taanagers cannot perform the control function by eros ves ‘They hi Ss delegate 4 portion 7 ie controlling authority. . They have to 3. “Control is best aimed at results, not at peo) ” Di “oasis of elfective Ce at people as such.” Discuss. What are the Ans. Managerial ‘control aims at increasing efficiency and effectiveness in achieving desired results. jn this process, importance must ‘be given to human element because human-power of an organisation is the main spring of action. People’ generally think of rontrols as restraints. Sometimes they do not understand the nature and importancy of control. People tend to resist imistrol when they feel that control is arbitrary or when they’ go not have faith in control process Control system will not be successful if people resent oe Ipesist it: For. getting co-operation of people it is necessary to explain the nature and oped for control in the organisation. ‘Stardlards under control process should be decided tuth the joint consultation of people sracerned, Management can get co-operation from the eubordinates if they feel control is @ iti \d is desirable. ‘An appropriate mix of freedom snd control is netessary for achieving, organisational effectiveness. Positive control is always designed to get ‘better results rather than to punish individuals. Behavioural modifications and learning are the positive means of tontrol whereas threat is a negative means. ‘A good control system is one which facilitates right action at the right time yather than ‘restricting the necessary action. ‘Therefore, control is best aimed at results and not at people as su Q.4. “No planning, no control.” How far does this an effective control system. Provide your suggestions to install correct? ‘statement stand to be [2004180 SHIV DAS DELHI UNIVERSITY SERIES Ans. The statement “No planning no control” Is absolutely correct. Planning j, ‘basis of controlling, Planning and control are closely inter-related. Controlling"? iapossible without planning and planning cannot be successful without a proper ays a postfoL, Planning sets standards to achieve business objectives. Control measurey sreceees the actual performance and compares it with the planned standards and suggen’ assesetive measures to be taken to prevent recurrences of the deviations. Control helper? Somedelling plans so-as to get maximum benefits at minimum cost. Without a plait control is blind because it does not know where td’go and whether it is going in the rig " direction or not, Without a plan, control is handicapped. he H.G.Hicks comments, “Planning is clearly a pre-requisite for controlling. It is utterly footy to think that controlling could be accomplished without planning. Without planning there is no predetermined understanding ofthe desired performance.” In. fact plénning without corresponding control is likely ‘to be a hollow hope. ‘On the other hand, planning without control is not a reality. Without control, even best designed plans may go astray and thus will fail to obtain the desired results. Control ensures the organisational activities and functions to be on the right track and be aligned with plans and goals. Control makes plans meaningful and effective. Similarly -controlling is effective only when it is specially. tailored to plans. Thus, it is correct to comment that planning is meaningless without control and contro] is aimless without planning. Weihrich and Koontz corniment, “Planning and controlling may be viewed as the blade of a pair of scissors, the scissors cannot work unless there are two blades,” Without proper planning, Pontrol is not possible because performance has to be measured against some established Giteria. Similarly, without control,-realisation of plans is not possible in absence of guidance to the right path leading to the success of plans. : ‘This is why Weikrich and Koontz have stated as, “Planning and controlling are inseparable — the Siamese twins of management. Any attempt to control without plans is meaningless, since there is no way for people to tell where they are going, where they want to go (the result of the task of control) wiless they first know where they tant to go (part of the task of planning). Plans thus furnish the standards of control.” ‘Requirements of an effective control system (Essential elements), Though different organisations may design their control systems accotding to their unique and special cromcteristies or conditions, yet in designing a good and effective control system: the following requisites must be kept in mind— () Focus on objectives and needs. The effective control system should lay emphasis on attainment of organisational objectives and therefore it should be designed in accordance with practical needs of the enterprise. (i Prompt indicator. An ideal control system should be able to detect and report significant deviations. as promptly as possible so that immediate necessary corrective action may be taken. : Understandable and economical. Control tools and adopted. techniques should be such as are clearly understandable by the managers. They must know all the details and critical points in the control device as well as its usefulness. Besides, the control system should be worth its cost. (iv) Forward looking. Control system should b forecasts to the managers so that they become aware of the problem: _ confront them in future. (v) Control by functions and factors. production, marketing, finance, human resources etc. It sho four factors—quality, quantity, time use and cost. (ii) e future-oriented, making, valuable likely to Control should envelope functions such as uld also focus on‘wu NIT V: CONTRO; | It means that control 5, L jons or revisions a zpdinrne as a ( mei and complex organisati d ic points of control. Contro} syst em shou SI Its areas of the ii) ey resul © comy (7) on KY time, costs and effort. ca Every thi Id be sele 0 ible. stem Shoul re id re made nece be able to 181 nal environ, sary in accommodate juch © wake of rapidly ve i ing ii ctive to § jse mu: ea ertain g XIN is n, and « an enterPrist ist be identified ang trategic or tail be controlled inne, ned at those stages. Appropriate coh nts in the a order contro] rking of desiB" jcative a8 Well 26 SUBBestive, Co I devices should be ystem should not tint the deviation, but it should ec” sup! oes te cet the recurrence of vari also suggest corr action al correct ti ation rective i jon i » An effect lems ) Co ct Ke time. An’ effectin ct Problems in (0 ect action is taken at correct time“ ® Control, congquate freedom. The contrl oa: system @) Adie their talents, expertise and System should enabie the ma . Magers to fairly ly sistent. It should be consistent with th le size and stru icture of the oe able to ction that i future, that is is that in which ‘garsshort note on the steps of 5, Write i: f process of 05 Steps taken in the process of control. The foll wit aac are taken in the process trol: of COM! plishment of standards. The first at plishment step of th : {establist hich the actual results are to be cvalas Dd ena ee aan a fandard is the criterion rds ganda “which actual performance can be compared. agains h ald be broadly classified as bei . sod gible ve dlarda}ate those Ags being tangible'snd intangible. numerical terms. These are further analysed. aie of eins. expressed in specific numerietary standards i.e, standards expressed in t following [divisions profits, costs, expenses, income etc. terms of money for example, _ Quantitative standards. ie, standard: 3 ie terms for example, units of production, Sapa cone of quantitative _ Time standards. i.e., standards expressed i ti hours or machine-hours. : in terme of time for em ne (Intangible standards are those which deal with qualitative aspects, and are not Inpable of being expressed directly ‘and specifically in numerical terms. Such standards might ‘be set in the following areas: Morale of employees ew Competence of managers - Reputation of the enterprise — Good public relations, etc. » Measurement of performance. Aficr establishment of standards, the next step is to maettne actual performance. Performa/et ould be measured in the same terms in messMeyandards have been established. accurate and timely measurement of results Ttyures an effective system of reporting: ; ; appraisal of performance. The Bal performance is then compared with the sede Sach comparison will reveal the Veviations from the standards. out ‘Finding the cause of deviation. Every significant deviation is ‘analysed to find ou why it has This will help in finding of sible for deviations. 5. Taking corrective action. ‘The final step in the control process is taking appre opr 7 sean nE ce eviations may not occur again and the objectives of the ore EEEECTIVE CONTROL : ; a = of control in a business enterprise. Also explain 6. Explain the importance ae po limitations of control.sHiv DAS DELHI UNIVERSITY SERIES 182 ; ; tions have vital importance jp » trol. The following func i in eine ane rioation: ‘an efficient system of control provides the fort, os man: anisation. Ma ae) Ex ntrol is the only means to ensure that the plans are j £ plans. Co! ) 1 0) exec tie ianplemented, It regulates actual operations fo ensure that the goals Ponkg achieved. By keeping a close watch over performance at various jeyei® A ati tual results and desired 5 trol tries to correct the deviation between ac desired resi” Mistakes are located promptly and appropriate remedial action is initiay.< Thus, it helps in achieving the objectives laid down in the plan of action, ©“ (ii) Improve efficiency. Effective control system helps to minimise wastages ,, losses, The existence’ of an effective control system has a positive impact on 3 i oyees, They, become cautious while performing their dus behaviour of employees. They: See cpa ies - because they know that they are being observe (ii) Keep a balance in managerial activities. Control helps the top management fo, keeping the various -plans and programmes in balance through the master, budget, policy and organisational manual and management consultants, This results in the effective utilisation of financial resources which every organisation expects from the controlling functions. ine = (jv) Simplifies supervision. An effective control system simplifies supervision by identifying deviations. In respect of a given job the manager can supervise his subordinates more effectively. ah ae (@) Facilitates co-ordination. Control, keeps all activities and efforts within their fixed boundaries and makes them move towards goals through co-ordinated activities. Thus, control facilitates coordination. (vi) Maintaining discipline An indirect advantage of controlling is to ensure disciplined organisational life. In fact, the very fact of controlling induces people to abide by the rules of the organisation, with a view to achieve planned performance. Limitations of control: , () An entetprise cannot control the external factors such as Government policies, technological changes, social changes etc. (i) Employees often resist control and as a result the effectiveness of control is reduced. i (i) Control is an expensive process. because sufficient attention is to be paid to observe the performance of subordinates. This requires a lot of time, cost and effort. (iv) Control system loses its effectiveness when standards of performance can not be determined in quantitative terms. For instance it is very difficult to measure the human behaviour and employees’ morale. Q.7. Explain behavioural aspects of management control. Ans. Behavioural. aspects of management control. People may dislike and resist control due to the following reasons: () Employees resist control when they do not accept and understand the standards or goals. This may happen when standards are imposed on them without their participation and co-operation in determination of standards. (i) Employees may perceive control as curbs to their freedom and as instruments of oppression~ (iii) Control may be resisted when people feel that measurements are inaccurate or biased. The control may be administered in a discriminatory, arbitrary and whimsical manner. (i) Control measures may not be well-timed.UNTT V: ContRoy ; resist control when oplé resis control (9 PeePrccount for effort. The control sesute 0 18 not ‘sing people rather than Buide S¥Stem may: fete OM deviat e ling thei i ions and persrol may SUPPTESS the creative Sunt Behaviour for pen au finding nd eople: : innovative etter results, perrol has its status -and some power ; ‘UTges and abilities of th (oi) Crtrol inspector may be entrusted with implications. F, : P . Foi ceay be resisted. More power thacy AamPles & quality to overcome resistance to control, Th, ipervisor and this ueass eures to overcome People’s resisters, OBAisat jowin§.Erdards or goals must be determinnanc® £9 control— ion should take up the () Sandards should be realistic and flexible, wltation with the em le. r (Control measures should focus on} (i) Cather than on deviationis and faults ovement of behaviour and perf ) Gonttols should be administered ob eer: ) jgoures (i) 7 jectively and fai (}) Management should have faith in the aay fail. They should apply selective control. Cor and character of subordinates. jyhere subordinates are responsible (oi, There should be two-way Comminiccin ee should be free to send their suggestions an _ the organisation. The employees ip Te reward system in the organisation should be eee oe mnnnabement kinds of controls. e integrated with the various . 8. Discuss ‘Management by exception’. Also disti: exception and See eed objectives: ,. Manage! ion or Control b: i ii ‘ ere wraBeontrol and it means that an executive or manager stains feet nerheneee ot meults by delegating majority of the routine functions to his subordinates. 8) olen io orteaves for himself only the broad general problems which are exceptions to routine. he Mtubordinates are left to choose the means and ways to accomplish the da to-day Tr sassigned to them whereas the chief or the manager is supposed to interfere only in exceptional circumstances. ~ x ‘Tijs also means that only major deviations or exceptions from the standards laid gould be brought to the notice of the executives. Thus minor exceptions or deviations should be ignored. However, sometimes this principle of management by exception is srmused by the executives. They may not well understand its significance and may also merlook certain pre-requisites of its application. The exception principle assumes that the orcutive, before delegation, has worked out proper and careful policies and procedures toguide those who will perform the delegated duties. Unless policies and procedures are aa jd out, each subordinate may follow his own viewpoint resulting in a number of. quite unrelated activities or steps. Hence, the executive must, at the time of delegating authority and creating obligations, clearly express to each of the subordinates or subordinate-in-charge the scope of authority so delegated. Benefits. Management by exception offers the following benefits: () It saves the time of manager because he deals only with exceptional matters. (id) It focuses managerial attention on major problems. (ii) It facilitates delegation of authority. ; () Re is a technique of separating important informatio information. betes ates (© It keeps management alert to opportunities and threats by identifying critical problems. (i) It provides better yardsticks for judging results. inguish between management by 1 from unimportant