CONTROL

CHAPTER 5
Learning Objectives….
• Upon completion of this topic, you
should be able:-

a. Define controlling
b. Explain the purpose or importance of controlling
c. Describe the steps in the control process
d. Differentiate the types of control methods
e. Describe the characteristics of effective control
systems
Introduction
• Controlling is significant in order to
ensure the quality of products and
services that will satisfy consumers.
• A manager or leader has to play a vital
role in controlling the work progress to
ensure that the organization they
represent achieves goal.
• An organization that lacks controlling
will fail. But hen again, too much
controlling will also restrict the
organization.
Definition
“ The process to assure that actual
activities conform to planned activities“
STONER

“A process of monitoring performance

and taking action to ensure desired
results”
SCHERMERHORN
Importance of Controlling
• There are several reasons why
controlling is important:-

a) Assist the management process

It assists the management process of
planning, organizing, leading and
motivation by determining what is
necessary when it is necessary and
the way it is required.
b) Deal with change or uncertainty
It deals with the change or
uncertainty. Plans and goals set
by organizations deal with the
future which is always uncertain
and is constantly changing e.g.
market shifts, product
demands, new regulations and
policies.
c) Deal with complexity
It deals with complexity. This is
because as organizations grow in size
and diversity, they become more
complex. Big organizations will have
more workers, who use formal
channel of communication and
sophisticated technology. A control is
needed to coordinate activities and
accomplish integration.
d) Deals with human limitations
In other words, controlling deals with
human mistakes. Organization
comprises of organization members.
These people sometimes make
mistakes e.g. they make wrong
forecasts, make errors in judgments
or filling wrong orders. Controlling
will help spot the mistakes.
e) Help delegation and decentralization to run
smoothly

It ensures delegation and decentralization are

operated smoothly. When managers delegate
authority to employees, these employees
need to be monitored so that they will note
make mistakes or even misuse the power and
authority given to them. Controlling also
enables managers to check on performance.
The Controlling Process
SET PERFORMANCE STANDARDS

MEASURE ACTUAL
PERFORMANCES

COMPARE ACTUAL
PERFORMANCE WITH ACTUAL
STANDARDS

TAKE NO CORRECTIVE TAKE CORRECTIVE

ACTION ACTION
a) Establish standards and methods for
measuring the performance standard
Organizational control process always begin with
the establishment of standards or performance
against which organization activities are measured

b) Measure the performance

This step may be an ongoing competition process.
It is the most difficult step. The measuring period
from the first performance to another must not be
too long or too often. But sometimes, it depends
on the situation. This step comprise of 3 elements
e.g. what to measure, when to measure and how
frequently to measure.
c) Determine whether performance matches the
standards
This is the easiest of all steps. But sometimes it can
be difficult too depending on the nature of the
performance to be measure e.g. performance
appraisal. Appraising employee one difficult task.

d) Take Corrective Action

This step is done only if the performance does not
meet the earlier established standards. Corrective
action may include the following earlier established
standards e.g. changing standards (this may be too
high or to low), providing more incentives to enhance
performance
Types of Control (Control Methods)
• There are four type of control:-
a) PRE-ACTION CONTROL (Feed- Forward)
Controlling is done at the input level of production.
It is initiated before the start of production or
service activity e.g. the specifications of output/
input factors such as finance (capital), human
resource and material resources.
The purpose is to anticipate potential problems and
prevent them occurring. This type of control is
sometimes called preventive control because its
objective is to prevent problems at the input levels
before going through the transformation process.
 b) STEERING CONTROL
(Concurrent Control)

Focus on what occurs during the work

process or the transformation process.
The primary goals in steering control is
to spot problems as they develop and
take corrective action before final
results are achieved e.g. zero inflation
campaign by the Malaysian
government o prevent inflation.
c) Screening Control (Yes or No Control)

• Check points that must be successfully

passed before an activity proceeds further.
• Before proceeding to next sequence, an
activity, product or services must be
approved or meet specific conditions.
• Example: bank procedure in the approval of
a large cheque amount. The approval of the
cheques has to go through several stages
because it involves a large amount of
money.
d) POST-ACTION CONTROL
• Takes place after an action is
completed.
• Attempts to measure the result of
certain actions.
• It there are problems, corrective action
is undertaken and applied to future
activities.
• Example: when the waiter of a
restaurant asking you, how was your
meal after you have eaten.
The Controlling System
Feed Forward control
to check on the types INPUTS Feed Forward
of fabrics for any tears,
color variation and any

Control System
other imperfections

Steering and Screening

Concurred
Controls where the Transformation Control
sewing Machine operators Process
must monitor sewing
process continuously to
detect any imperfections

Feedback control or Post Feedback/

Action Control will be Control
implemented where quality INPUTS
assurance individual will
inspect the final product
for any imperfections
CHARACTERISITICS OF AN
EFFECTIVE CONTROL SYSTEM

An effective control system is a control

system that is :-

a) ACCURATE (information)
Information needed for controlling
must be accurate. Inaccurate
information will cause the
organization to make the wrong
decision or to take the wrong action.
b) TIMELY

Information must be collected and evaluated

quickly to enable managers to solve
problems on time.

c) OBJECTIVE & COMPREHENSIVE

Standards set must be understandable and measurable.
It must not be subjective or ambiguous. A difficult
control system will cause mistakes and cause frustration
among both manager and employees.
d) FOCUSED ON STRATEGIC CONTROL
POINTS (Strategic and Result Oriented)

• The control system should be designated to

measure what is important now and what
will be important in the future and not what
was important in the past. However, what
was important in the past may be used as
guidelines for future measurement.

e) FLEXIBILITY
• It leaves room for individual judgment and is
modified to fit new circumstances as the
arise.
 e) CONSISTENT WITH THE ORGANIZATION’S
STRUCTURE (Organizationally Realistic)

• Controlling must be exercised at all levels of

management and must be obtainable by all levels of
employees who work within the organization.

f) ACCETABLE BY ORGANIZATIONAL
MEMBERS
• To be effective, the control system designed should be
acceptable by all organizational members. The control system
should be able to motivate workers to recognize the importance
of standards and engage themselves in an appropriate behavior
to achieve them. The more committed the employees to the
control system, the more successful the organization will be.
 h) UTILIZE ALL STEPS OF THE CONTROL
PROCESS
• An effective control system should not ignore any one
step of the controlling system. If any of the steps is
not being properly utilized, it will ruin the overall
control system and the future of the organization will
be doubtful.

i) UNDERSTANDABLE & JUSTIFIABLE

• All members of the organization must understand the

standard set in the control system. In other words,
employees who know exactly what is expected of
them will exhibit less resistance. At the same time, if
the employee are told earlier of the importance of the
control system will be easier to obtain.
j) CORRECTIVE ACTION

• An effective control system should be

able to suggest what action to be
taken to correct deviation and also
indicate when a deviation from
standard occurs. This means any
problems detected should come up
with appropriate remedies or solutions.