Process and Types of controlling with examples

Process and types of Controlling include the different ways to get feedback from the employees. And controlling is the last function of management in which the actual performance of the employees is measured. It ensures the managers to do the important task on time.

What is Controlling?

It refers to measuring the performance and taking the employees’ feedback to check the compatibility and efficiency. It brings back the management cycle to planning and ensures the work according to plan.

In the process and types of controlling, a manager taking reports from the employees whether they have achieved the task or not if yes then ok but if they have not reached their task then-manager try no find the cause behind that and resolve the problem accordingly. So this is important for the manager to find out where his employees are doing right and where they are lacking.

Definitions:

“Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

-Brech

“Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on the right course. ”

-Donnell

Process of Controlling:

The process of controlling has a number of steps which are as follows:

1. Establishing standards:

Standards ensure the criteria of performance. In this step, the management makes the plans and policies so that work is to be done accordingly. Standards help in achieving the desired goals of the organization. 

2. Measurement of actual performance:

The actual performance of the employees is measured by taking the reports from the employees. Then a manager comes to know who is the best and who needs the training so that the efficiency of the workerswill be enhanced. Measurement of actual performance can be in form of cost, output, expenditure, time, profit, etc.

The attitude of the workers, their morale to work, attitudes regarding the physical environment, and their communication with the superiors, etc. is including in this process.

It is done by getting various reports which may be weekly, monthly, quarterly bases.

3. Comparison of actual performance with the standard:

In this step the difference between the actual performance and the standard. In this, a manager comes to know that where the employees need guidance and where they are perfect in their work.

4. Taking corrective actions:

It is initiated by the manager who overcomes the problems in actual performance. A manager revises the plans and sets the targets again after evaluating the employee’s capabilities. It is done by the head of the department to enhance the productivity of the organization.

Types of Controlling:

The types are categorized as below:

1. Budgetary Control:

Budgeting refers to the plans and expected results in the form of numerical information. It helps in understanding and expressing the future results of the projects in numerical form. For example, the number of sales, production output, etc. 

2. Standard Costing:

Standard costing is similar to budgeting, it also works on numerical figures. Standard costing includes the estimated costs for all activities within an organization.

3. Break-Even Analysis:

Break-even analysis Indicates the point at which a business lies in no profit no loss situation. It can be in the form of the price of products, sale output, production volume.

4. Statistical Control:

It understands an organization’s tasks effectively and efficiently. The averages, percentages, and ratios using graphs and charts. represents the organizational performance in an easy way.

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