Controlling is the management function that ensures that actual performance matches the planned performance. It helps in identifying deviations and taking corrective actions.
Steps in the Controlling Process:
Setting Performance Standards – Benchmarks to compare actual results.
Measuring Actual Performance – Using tools like reports, observation, etc.
Comparing Actual with Standards – Identifying deviations.
Analyzing Deviations – Finding causes and significance (e.g., Critical Point Control, Management by Exception).
Taking Corrective Action – Fixing problems to avoid future deviations.
Importance of Controlling:
Ensures achievement of goals
Judging accuracy of standards
Efficient use of resources
Improves employee motivation
Facilitates coordination
Helps in planning (future improvements)