1. What do you mean by Control ? What are the features of Control ?
Ans - The objective of every organisation is to use scarce resources in a best possible way . Plans are framed to achieve better results. Control is the process of checking whether the plans are being used to or not keeping a record of progress and then taking corrective measures if there is any deviation .
The features of Control are as follows -
1. Managerial Function - Control is one of the managerial functions . It is not only the function of chief executive but is the duty of every manager .
2. Forward looking - Control is forward looking. Past is already gone thus cannot be controlled . Measures can be devised to control future activities only .
3. Control is related to planning - Planning is the first function of management while control is the last. Control cannot be exercised for planning . Planning provide a base for controlling .
4. Continuous function - Control is regularly exercised. The manager will have to see that subordinates perform according to plans at all the times .
5. Essence of control is action - Whenever performance is not as per the standards than immediate action is needed to correct the things . The purpose of control will be defeated if corrective action is not taken immediately .
2. What are the steps in Controlling process ?
Ans - 1. Setting of control standards - Every enterprise plans its activities in advance . On the basis of plans the objectives and goals of every department , branch etc. are fixed . These are to be achieved in future and the levels of achievement are also decided in advance . The achievements of various targets is made the responsibility of specific persons .
2. Measurement of performance - The second step in controlling process is the measurement of performance . The performance is measured against the standard set. This will enable management to determine whether the work is being done according to plans or not .
3. Comparing actual and standard performance - The next step in control process is the process is the comparison of actual performance with the standard set. The purpose of these comparison is to find out deviations if any and to determine the reasons for such deviation .
4. Taking corrective action - The last but most important step in controlling process is of taking corrective action . Whenever the performance is less than the standards , efforts should be made to rectify it . It is the action which is required to set the things right .
3. What are the importance of control ?
Ans - 1. Basis for future action - Control provides basis for future action . It helps in taking corrective action in future if the performance is not upto the mark .
2. Facilitates decision making- Whenever there is deviation between standard and actual performance , the controls will help in deciding the future course of action .
3. Facilitates Coordination - Control helps in coordination of activities through unity of action . The controls will act as checks on the performance and proper results will be achieved only when activities are coordinated .
4. Helps in Improving efficiency - Various control devices act as motivators to managers. The control system helps in improving organisational efficiency .
5. Facilitates Decentralisation - Decentralisation of authority is necessary in big enterprises . The management cannot delegate authority without ensuring proper controls .
4. What are the features of making a control system effective ?
Ans - 1. Accuracy - Effective control generate accurate data and information . Accurate information is essential for effective managerial decisions. Inaccurate controls divert management efforts and energies on problems that do not exist or have a low priority and would fail to alert managers to serious problems that do require attention .
2. Timelines - There are many problems that require immediate attention . If information about such problems does not reach management in a timely manner, then such information may become useless and damage may occur .
Accordingly controls must ensure that information reaches the decisions makers when they need it so that a meaningful response can follow.
3. Flexibility - The business and economic environment is highly dynamic in nature. Technological changes occur very fast. A rigid control system would not be suitable for a changing environment . These changes highlight the need for flexibility in planning as well as in control .
4. Strategic planning - Strategic planning must allow for adjustments for unanticipated threats and opportunities . Similarly, managers must make modifications in controlling methods, techniques and systems as they become necessary . An effective control system is one that can be updated quickly as the need arises.
5. Acceptability - Controls should be such that all people who are affected by it are able to understand them fully and accept them . A control system that is difficult to understand can cause unnecessary mistakes and frustration and may be resented by workers.
Accordingly , employees must agree that such controls are necessary and appropriate and will not have any negative effects on their efforts to achieve their personal as well organisational goals.
5. Integration - When the controls are consistent with corporate values and culture, they work in harmony with organisational policies and hence are easier to enforce. These controls become an integrated part of the organisational environment and thus become effective .
6. Corrective action - An effective control system not only checks for and identifies deviation but also is programmed to suggest solutions to correct such a deviation .
5. What are the limitations of Controlling ?
Ans - 1. Difficulty in setting quantitative standards - Control system loses its effectiveness when standard of performance cannot be defined in quantitative terms.
2. No control on external factors - An enterprise cannot control the external factors such as government policy , technological changes, change in fashion , change in competitor's policy .
3. Resistance from employees - Employees often control and as a result effectiveness of control reduces . Employees feel control reduces or curtails their freedom .
4. Costly affair- Control is an expensive process . It involves a lot of time and effort as sufficient attention has to be paid to observe the performance of the employees .
