In this tutorial, we will learn about controlling is to ensure that the actions move under the plan. Its primary function is to check the deviations and take corrective action.

In stock, the word control means to check, to verify, to regulate, or to restrain. Power is directly related to planning. Controlling is one of the essential functions of a manager. A manager needs to exercise effective control over the activities of the subordinates. In other words, the meaning of controlling service can define as ensuring that operations in an organization are performed as per the plans. Controlling ensures that an organization’s resources are being used effectively & efficiently to achieve predetermined goals.

Definition Of Controlling:

“Individually managerial control means the measurement of accomplishment against the standards and the correction of deviation to assure attainment of objectives according to plans.” ‘Koontz and O’Donnell’

“Controlling is determining what is accomplish that is evaluating the performance and, if necessary, applying corrected measures so that the performance takes place according to plans.” ‘George. R.Terry’

Characteristics Of Controlling:

• It is forward-looking.

• It is a continuous activity.

• The Purpose of controlling is definite.

• Controlling exist at every level of management activity.

• Essence of control is active.

• Basis for future work.

• Facilitates decision-making.

• Facilitates decentralization.

Importance\Merits Of Controlling:

• Controlling helps in decentralizing authority.

• It increases managerial ability.

• It is established to ensure optimum use of valuable resources.

• It facilitates coordination.

• It structures human behavior.

• Accomplishing organizational goals.

• Judging accuracy of standards.

• Making efficient use of resources.

Control Techniques:

1. Traditional control techniques.

2. Modern control techniques.

Traditional Control Techniques:

Budgetary Control: 

The Budget referred to the statement of anticipated inflows and expected outflows expressed numerically. It involves the determination of objective to be achieved and translating the course of action into monetary terms.

Standard Costing: 

Expenses related to every activity are recorded and then compared with budgeted costs.

 Ratio Analysis: 

It is a relationship between various elements of financial statements expressed in mathematical terms, which helps to understand probability and liquidity.

 Break-Even Analysis: 

It is a point of no profit, no loss, and acts as a basis for future performance. It determines the minimum level where the firm should operate.

Modern Traditional Techniques:

Zero Base Budgeting: 

In this, the managers at every level have to define the objectives of each program of activity. Then they prepare the alternative spending plan known as decision packages.

Network Analysis: 

These include two methods:-

 Critical path method (CPM): 

Under this method, a project is broken into different activities, and their relationship is determined. This approach based on assumptions that the time taken by a business is proportional to the magnitude of resources available to them.

Program Evaluation and Review Technique (PERT): 

It is directed towards the dynamic management of projects. It uses probability and linear programming for the activities. PERT used in the construction of buildings, ships, etc.

Essentials Of A Good Control System:

• Control should be objective.

• Organizational stability.

• Flexibility.

• It should be economical and easy to understand.

• Strategic point control.

• Control should be worker focused.

• Feedback.

• Prompt reporting of deviations.

• Control should suggest corrective actions.

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