INSTITUTE OF SUPPLY AND MATERIAL MANAGEMENT
(Incorporated by Act of Parliament No. 3 of 1981)
COURSE : Course in Stores Management
SUBJECT : Control in Management
H. No. : 20
What is Control?
Control can be defined as the process of monitoring activities to ensure they are being
accomplished as planned and correcting any significant deviations. All managers should be in
the control functions. The ultimate criterion that a manager can use to determine if he or she has
an effective control system is the extent to which it ensures that activities completed in ways that
lend to the attainment of his/her wait’s goals.
The Importance of Control
Control function ensures whether the planned activities are carried out as planned. If hiccups are
seen, corrective actions are taken. The value of the control function is probably best exemplified
by tying it to planning and organizing activities.
The Control Process
The control process is made up of three separate and distinct steps.
2.1 Measuring actual performance
2.2 Comparing actual performance against standard.
2.3 Managerial action
3.1 Measuring
To determine what actual performance is, it is necessary to acquire information about it, the
first step in control, then is measuring.
How we measure
Four common sources of information frequently used by managers to measure performance
are;
Personal observation
Statistical reports
Oral Reports Written Reports
3.2 Comparing
The comparing stage determines the degree of variation between actual performance and
standard. Any variation between actual and standard performance, receives manager’s
attention.
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3.3 Managerial Action
Third and final step in the control process is managerial action. Manager can resort to three
course of actions.
a) Do nothing
b) Correct the actual performance
c) Revise standards
3.3 (b) Correct the actual performance
If the source of the variation has been deficient performance, the manager will want
to take corrective action. Examples of such corrective action might include changes
in strategy, structure, compensation practices or training programmes, the redesign of
jobs or the replacement of personnel.
In taking corrective action, manager has to decide whether he/she should take
immediate or basic corrective action.
Immediate Corrective Action : Corrects something right now and gets things
back to track.
Basic Corrective Action : Asks hw and why performance deviated and
then proceeds to correct the source of deviation.
3.3 (c) Revise Standards
If the variance is a result of an unrealistic standard, standards will have to be revised.
(Too high goal or low) At this, it is the standard that should be revised not the
performance.
Types of Control
4.1 Feed Forward Control
Most desirable control prevents anticipated problems. It is called feed-forward control
because it takes place forward in time from the actual activity. It is future directed for
instance, managers in an aerospace firm may hire additional personnel as the
government announces that the firm has won a major military contract. The winning
of personnel ahead of time prevent potential delays.
Management action is taken before a problem occurs. There controls require timely
and accurate information. This control, allows met. to prevent problems rather than
having to cure then.
4.2 Concurrent Control
This type of control takes place while an activity is in progress. When control is
counted while the work is being performed, management can correct problems before
they become too costly. The most well-known form of concurrent control is direct
supervision (e.g. If you input the wrong command, compute immediately query you)
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4.3 Feedback Control
The most popular type of control is the feedback control. This control comes into
being, once the activity is over. The major problem of this type of control is that, by
the time the manager has the information and if there is a significant problem, the
damage is already done. “Closing the barn activities, feedback is the only viable type
of control available.
Qualities of an Effective Control System
1. Accuracy - Control system should generate accurate information
2. Timeliness - Information should reach in time for actions.
3. Economy - Economically reasonable to operate (System not costly)
4. Flexibility - Adjustability of the control system to adverse changes take or
to advantages of new opportunities.
5. Understandability
6. Reasonable Criteria - Control standards must be reasonable
standards should be attainable
7. Strategic Placement - Factors which are crucial to organization’s
performance should be emphasized.
8. Multiple Criteria - Better to have multiple criteria for
measuring performance.
9. Emphasis on the exception
Contingency factors in the control process
(Situational factors that managers should consider in designing control system)
1.1 Size of the organization. When the organization’s size becomes long, control system
gets highly formalized.
1.2 Position and level in the organization
The higher up in the organization a person is, the greater the need of a multiple set of
control criteria.
1.3 Degree of decentralization
The greater the degree of decentralization the more managers will need feedback on
the performance of subordinate decision makers.
1.4 Organizational Culture
Depending on the organization’s culture, control system becomes either forward
informal.
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