Controlling and Coordination — Part 1: Controlling: visual lesson, ISC Class 12 Commerce

Lesson

Controlling

Part 1: the meaning of controlling, its five steps, standards and deviations, and why controlling matters.

In this lesson you will

Explain the meaning of controlling
Explain the steps in the controlling process from setting standards to corrective action
Explain the importance of controlling to an organisation

Part 1 at a glance

Concept

What is controlling?

Controlling means making sure that actual performance conforms to plans, by checking results against standards and correcting any deviation.

Table of the five steps of controlling, each with the key question the manager asks
Step	Key question
Set standards	What should be achieved?
Measure actual performance	What has actually been achieved?
Compare with standards	Is there a gap, and how big?
Analyse deviations	Why did the gap arise? Is it significant?
Take corrective action	What will remove the cause?

Diagram

The controlling process

The five steps form a loop; corrective action may also revise the standard.

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