Controlling in Management – Meaning, Features, Types, Steps, Importance, and FAQs

Key Summary

Controlling in management ensures organizational goals are met by comparing actual performance with set standards, identifying deviations, and taking corrective actions. It enhances efficiency, accountability, and coordination while minimizing risks. Types include feedback, concurrent, and feedforward control. Working with planning, it ensures strategic alignment and continuous improvement.

Definition of Controlling in Management

The controlling function of management is a goal-oriented process that involves comparing actual performance with established standards to ensure alignment with organizational plans.

It focuses on monitoring, evaluating, and taking corrective actions if there are any deviations from the desired outcomes.

Controlling measures the extent of progress identifies the causes of deviations, and facilitates corrective measures to maintain efficiency and effectiveness.

It helps in efficient resource utilization and ensures that organizational goals are achieved.

Controlling is a systematic exercise that involves continuous monitoring and adjusting of activities to stay on the right track.

It is a means of maintaining organizational control and influencing sub-units and members to achieve desired objectives.

Controlling should not be seen as a negative or manipulative process but as a way to ensure consistency between employee actions and organizational goals.

It is an integral part of management that involves establishing standards, measuring performance, and correcting any deviations to ensure plans are carried out successfully.

Effective control systems stimulate action and enable timely adjustments to keep the organization on course.

Ultimately, controlling plays a crucial role in achieving desired outcomes and maintaining organizational success.

6 Key Features of Controlling in Management

Controlling is a vital management function that ensures an organization’s goals are achieved efficiently. Here are the six key features of controlling in management:

Dynamic Process

Controlling is a flexible, ongoing process. Managers must continuously assess performance and adapt strategies when necessary.

If performance falls short, corrective actions are taken to realign efforts.

This dynamic nature helps manage changes in market conditions or employee behavior effectively.

End Function

Controlling is an “end” function, taking place after planning, organizing, and staffing. It evaluates the outcomes of these actions to ensure that goals are met.

If the actual performance deviates from the plan, corrective measures are taken to address the gaps.

Coordination of Activities

Controlling ensures coordination across various departments to achieve common organizational goals.

By aligning the efforts of different teams, such as finance and marketing, controlling helps prevent confusion and resource wastage.

Forward-Looking

While controlling involves evaluating past performance, it also focuses on predicting future outcomes.

Managers assess trends and data to anticipate potential issues and take preventive actions, helping to ensure smooth operations moving forward.

Ensures Efficiency in Resource Utilization

Controlling ensures that resources—whether human, financial, or material—are used efficiently.

By monitoring resource usage, managers can prevent wastage and ensure that resources contribute to the organization’s goals.

Creates Discipline and Accountability

Controlling fosters discipline by regularly monitoring performance against standards.

It holds employees accountable, motivating them to stay focused and maintain high productivity levels, contributing to overall organizational success.

Types of Control in Management

Here are five key types of control in management:

Feedback Control

Feedback control occurs after a task or process has been completed.

It involves collecting information about the finished task, assessing performance, and taking corrective actions for future tasks.

This type of control allows managers to evaluate the success or failure of a project by analyzing results.

Concurrent Control

Concurrent control is real-time monitoring of ongoing activities to ensure that problems are identified and corrected during the process.

For instance, a manager might monitor employee performance on the production line to ensure that processes are running smoothly and immediately address any issues such as machine malfunctions or quality concerns.

Feedforward Control

Feedforward control involves anticipating potential problems before they occur and taking preventive measures. It is a preventive control mechanism that focuses on future planning.

For example, a business may conduct market research before launching a new product to ensure it aligns with customer demand and expectations.

Budgetary Control

Budgetary control involves managing and regulating the financial resources of an organization by comparing actual expenses against the allocated budget.

This form of control helps ensure that the organization does not overspend and that financial resources are utilized efficiently.

Strategic Control

Strategic control focuses on evaluating and monitoring an organization’s long-term plans and ensuring alignment with the strategic objectives.

For example, if a company’s expansion plan is not meeting projected growth targets, adjustments to the strategy may be necessary.

Read More: Strategic Goal Setting

Process of Controlling in Management

The process of controlling in management involves a series of steps that ensure organizational goals are met effectively and efficiently.

Let’s break down each step in detail:

Formation of Standards

The first step in the controlling process is establishing clear and measurable performance standards. These standards act as benchmarks against which actual performance will be assessed.

Standards are typically set based on past performance, industry best practices, market conditions, and company goals.

For example, a sales manager may set a sales target of $1 million for the next quarter, which becomes the performance standard.

These standards must be realistic, achievable, and aligned with the overall strategic objectives of the organization.

Measurement of Actual Performance

Once tasks or projects are completed, the next step is to measure actual performance. This involves collecting data about the work done by employees or departments.

Measurement tools can include reports, surveys, performance evaluations, and key performance indicators (KPIs).

For example, the sales team’s actual sales revenue would be measured to determine if the set target was achieved.

The goal is to gather accurate, timely data to assess the performance of individuals or teams against the established standards.

Comparison of Actual Performance with Standards

After measuring actual performance, the next step is to compare it against the pre-established standards.

This step involves identifying any discrepancies between the expected and actual outcomes.

Managers analyze the data to determine the reasons for any shortfall or deviation.

For instance, if the sales revenue is below the target, the manager may compare the sales numbers with historical performance and identify factors such as market conditions or resource constraints that could have contributed to the variance.

Read More: Process of Planning

Corrective Actions

The final step in the controlling process involves taking corrective actions when performance does not meet the established standards.

If the comparison reveals a significant gap, managers need to intervene to bring performance back on track.

Corrective actions could include revising goals, providing additional resources or training, adjusting strategies, or implementing process improvements.

For example, if a sales team fails to meet its target, the manager might offer additional support, set new strategies, or reallocate resources to improve performance in the next cycle.

Importance of Controlling in Management

Below are key reasons why controlling is crucial for organizational success:

Ensures Organizational Success

Controlling is essential to ensure that an organization is on the right track to achieve its strategic goals.

By continuously monitoring and regulating processes, controlling helps prevent deviations from planned objectives.

It ensures that all departments and teams work in alignment with the overall strategy, minimizing risks and maximizing opportunities for success.

Improves Efficiency

Efficiency is one of the most significant outcomes of effective control.

By constantly monitoring performance, managers can identify inefficiencies, resource wastage, and bottlenecks in workflows.

Through corrective actions, they can streamline operations, reallocate resources, and eliminate unnecessary costs.

In the absence of control, inefficiencies can go unnoticed, leading to lower productivity and increased operational costs.

Read More: Committee Organizational Structure

Facilitates Goal Achievement

Controlling plays a pivotal role in ensuring that organizational goals are not only set but also achieved.

It allows managers to track progress, measure performance, and take corrective measures if goals are not being met.

Promotes Accountability and Motivation

Controlling fosters accountability among employees by setting clear standards and performance expectations.

It ensures that employees know their roles and responsibilities, and their performance is regularly evaluated.

This accountability motivates employees to perform better, as they are aware that their work is being monitored.

Enhances Coordination and Communication

It also plays a key role in promoting coordination and communication within an organization.

When managers establish clear performance standards and monitor progress, they ensure that different teams and departments work toward common organizational goals.

It enables smooth interaction between various levels of management, ensuring that any misalignments are quickly addressed.

Effective coordination between teams leads to faster decision-making, improved collaboration, and better overall results.

Helps in Risk Management

By continuously monitoring performance and comparing it with set standards, controlling helps in the early identification of potential risks.

It allows managers to foresee potential issues before they escalate and take preventive actions.

This proactive approach minimizes the chances of disruptions, financial losses, or operational failures, ensuring that the organization can navigate uncertainties effectively.

Read More: Organizing Function

Controlling vs. Planning: How They Work Together

Planning and controlling are two complementary management functions that work hand-in-hand to ensure organizational success.

Planning involves setting goals, determining strategies, and outlining actions to achieve desired outcomes.

It serves as a roadmap for the organization’s future, guiding all activities toward a specific objective.

On the other hand, controlling is the process of monitoring progress, comparing actual performance with set standards, and making adjustments as needed to ensure that the organization stays on course.

It helps assess whether the planned goals are being met and identifies areas that require corrective actions.

While planning sets the direction, controlling ensures that the path remains aligned with the goals.

In essence, planning defines the “what” and “how,” while controlling ensures that the plan is executed efficiently and adjustments are made when necessary.

Together, they drive continuous improvement and the achievement of organizational objectives.

Read Next: Leadership in Management

FAQs on Controlling