Meaning of Controlling in Business Management

The balance between too much and too little is complex. What`s even more challenging is that some employees may need more control and others may need less control. Let`s explore this idea. On the right side of the control panel, you can configure more controls for employees who are new to the job. They have no experience of the task at hand, so you need to monitor their performance so you can give them feedback. The right side may be an employee engaged in a dangerous task, such as heavy equipment or flying an airplane. Think of all the checklists that even experienced commercial pilots pass before boarding the plane. Each of these steps are control processes (lights and indicators that indicate avionics, mechanical power, etc.). On the right side of the area could also be those who make decisions with serious consequences such as profitability.

For example, a company bidding on a major project worth millions of dollars could have additional oversight to ensure that the bid is executed correctly. The more serious the consequences, the more the manager must take into account the situation in the control area. Finally, the right side of the control panel should also be used if the task is brand new to the organization. Think of the 9/11 response, coronavirus, or a mass shooting. The way an organization reacts to these events has never been experienced. Any strategy to deal with these situations could warrant more monitoring processes to ensure their success. On the left side of the pane, you can place someone to perform routine tasks or those that would result in minor consequences if not performed properly. On the left, tracking the performance of people who have proven themselves in the past would also be included.

Monitoring their behavior or directing their work would give them the feeling of micromanagement. One of the most important qualities required of a manager is that he enjoys the respect of his team. This allows him to direct and control their actions. In fact, control is one of its most important functions. Let`s learn the meaning and importance of function control. One of the fundamental elements of the management control function is the monitoring of progress. Progress tracking means you need a standard that you can use to assess whether you`re making progress. There is a specific process you can use to do this, called the control process. Control means giving instructions to employees and ensuring that instructions are followed as desired by management. Even the simplest control is an extra effort. Some systems can be very expensive, so management must weigh the costs against the benefits to each controller. The banks spend billions on controls, but it is worth it for the big banks because they manage trillions and their profits are still in the billions.

In this way, managers at all levels of the organization are involved in the control process. In a controlled environment, employees use resources correctly and handle them carefully. With control, management can ensure that employees get the most out of the resources at their disposal. Employee morale can be higher when employees see that management is paying attention and knows what they are doing. As we saw in a previous module, better morale means better productivity. Better controls can mean more freedom and responsibility for employees. Management can take a step back, knowing that the controls flag all exceptions. What we need is a broader perspective on control as a management function: this article examines such a perspective. The first part summarises the general problem of controls by discussing and describing the underlying reasons for the introduction of controls, which can realistically be achieved. In the second part, the different types of controls are identified. The last part explains why the appropriate selection of controls is and should be different in different contexts. The control process in management consists of four stages.

All these steps must be followed in order to control effectively. Managers at all levels of management – Top, Middle & Lower – must exercise a control function in order to maintain control over activities in their areas. Therefore, control is very important in an educational institution, military, hospital and club, as in any commercial organization. All companies need controls. Even sole proprietorships must keep records for tax returns. Public companies are required by law to conduct thorough checks to protect shareholders, and good controls help a company raise funds through the issuance of shares and debt securities. In the feedback control discussion, we looked at Foxconn`s response to employee suicides. This is clearly a feedback control mechanism, but not good management. How can they use management`s control function differently to work at the heart of this problem? Rigid implementation can slow down business operations. At Freddie Mac, a financial services company, the approval process for new products required 25 signatures and took more than a year. New opportunities in the market disappeared before products could be approved. The role of managing an organization is to ensure that the organization`s objectives are achieved as planned and on time.

Among the many management functions, control is one of the most important functions of the organization. Control and planning are linked, as control provides important input for the next planning cycle. Control is a retrospective function that brings the management cycle back into the planning function. Planning is a forward-looking process because it deals with forecasting future conditions. Control is important to ensure quality. Some organizations are known for their quality, and they could suffer a blow to their business if they don`t care about quality. Therefore, in such organizations, the manager makes every effort to follow quality standards. A good analogy for the control process is a road trip. In this analogy, the goal (planning) is to travel from Kansas to Missoula, Montana for a bluegrass festival. To go on this road trip, you have a budget for gas stations and gas station meals (organize), and you have convinced your best friend to join you (leader). You have three days to get there for the start of the festival. The control function of this road trip is to make sure that you arrive in Missoula in time for the start of the event.

In the planning phase, this would include checking the oil, checking the tread of your tires, and checking the windshield wipers. These steps will improve the likelihood that you will reach your destination. Based on your estimates, you have decided that you will have to drive 9 hours a day on the two days you have booked for this trip. While driving, you monitor the fuel gauge and whenever it falls below the 1/4 tank area, you will find the nearest stop to refuel. While driving, your GPS will identify an accident that is delaying traffic outside of Denver. GPS suggests you redirect to save an hour driving on the toll road. On the first day, you will drive 5 hours because you decided to stop at REI in Denver. Since you`re late, decide to start the second day at 6 a.m. to make up for overtime. Each of these pre-departure checks and adjustments is considered a control mechanism. They will help guide you on the journey and track progress towards the destination.

In this way, control takes place at all levels. However, there may be differences in control methods and various corrective actions will be taken if the employee`s performance is not as desired. As organizations develop standards and goals, monitoring necessarily ensures that the performance of individuals, groups, and organizations does not deviate from the norms. Management is responsible for controlling the stock so that there is never a shortage or oversupply and everything runs smoothly. Therefore, it is not wrong to say that control is a final function. This page helped me prepare my management document. I am so grateful. On the contrary, control suffers from the constraint that the organization has no control over external factors. This can be costly, especially for small businesses. The management of the organization ensures that the resources of the organization are used properly and are used for the growth of the organization and are not wasted in any way. Ensure that the organization`s resources are used effectively and efficiently through management control.

In a social system, norms of acceptable behavior become the norm against which so-called deviant behavior can be measured. Regulations and laws provide a more formal collection of information for society. Social norms are changing, but very slowly. On the other hand, the standards set out in a formal law can be changed from one day to the next by revision, deletion or replacement by another.