1. Meaning and process of controlling
Controlling is the function of management that ensures activities are carried out according to plans: actual performance is measured, compared with standards, and deviations are corrected. It is goal-oriented, pervasive and continuous, and it looks both back (at work done) and ahead (at preventing future gaps).
Steps:
- Setting performance standards — quantitative (output, cost, time) or qualitative (courtesy, goodwill); precise but flexible.
- Measuring actual performance — by counting, sampling, reports or observation.
- Comparing actual performance with standards — to find the size and direction of any gap.
- Analysing deviations — finding causes and judging whether the gap is significant (often against a permitted limit).
- Taking corrective action — training, repair, new suppliers, or revising an unrealistic standard.
| 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? |
| Kind of standard | Meaning | Example at an imagined hotel |
|---|---|---|
| Quantitative | Stated in numbers | Rooms cleaned per housekeeper per shift |
| Qualitative | Hard to count; judged | Warmth of welcome at the front desk |
Key terms
- Controlling
Checking actual performance against standards and correcting deviations.
- Deviation
The gap between actual performance and the standard.
- Qualitative standard
A standard that is hard to state in numbers, such as courtesy.
2. Importance of controlling
- Accomplishing organisational goals — progress is tracked and drift corrected.
- Judging the accuracy of standards — results show whether targets are realistic.
- Making efficient use of resources — waste of materials, time and money is cut.
- Improving employee motivation — people know the basis on which they will be appraised and rewarded.
- Ensuring order and discipline — regular checking discourages carelessness and dishonesty.
- Facilitating coordination in action — every unit works to common, predetermined standards.
| Importance of controlling | In short |
|---|---|
| Accomplishing goals | Shows progress and corrects drift |
| Judging accuracy of standards | Reveals targets that are too easy or too hard |
| Efficient use of resources | Cuts waste of material, time and money |
| Improving motivation | People know how they will be judged and rewarded |
| Order and discipline | Checks reduce carelessness and dishonesty |
| Facilitating coordination | All units work to common standards |
| Step | At an imagined solar-lamp assembler |
|---|---|
| Set standards | 400 lamps a day, at most four faulty |
| Measure | Count lamps and test a sample each evening |
| Compare | Monday: 350 lamps, a gap of 50 |
| Analyse | Battery supplier delivered late |
| Correct | Keep two days of battery stock; add a second supplier |
| Item | Standard | Actual | Gap | Within 5 per cent? |
|---|---|---|---|---|
| Lamps a day | 400 | 392 | 8 short (2 per cent) | Yes |
| Faulty lamps | 4 | 9 | 5 more | No: analyse |
| Power cost (₹ thousand) | 50 | 56 | 6 more (12 per cent) | No: analyse |
Key terms
- Goal-oriented function
Controlling exists to see that organisational goals are achieved.
3. Planning and controlling; management by exception
Planning and controlling are inseparable. Planning provides the standards; controlling measures performance against them and reports results that shape future plans. Planning without controlling is aimless; controlling without planning has no basis. Both look back and ahead: plans draw on past results, and corrective action improves future work.
Management by exception (MBE): only significant deviations, beyond pre-set limits, are reported to top management; minor ones are handled at lower levels.
Benefits of MBE: saves top managers' time and effort; focuses attention on critical problems; encourages delegation; allows timely action on serious gaps; makes better use of managerial talent.
| Benefit of management by exception | Why |
|---|---|
| Saves time and effort | Top managers see only a few significant gaps |
| Focus on critical problems | Attention goes where it matters most |
| Encourages delegation | Lower managers handle routine deviations |
| Timely action | Serious gaps stand out and are acted on quickly |
| Better use of managerial talent | Senior time goes to planning and big decisions |
Key terms
- Management by exception
Reporting only significant deviations beyond set limits to top management.
4. Coordination: the essence of management
Coordination is the process of synchronising the activities of different individuals and departments so that there is unity of action in pursuit of common goals.
Features: integrates group efforts; ensures unity of action; continuous; all-pervasive; responsibility of all managers; deliberate (it does not happen just because people cooperate).
Need for coordination: growth in size; functional differentiation (departments chasing their own targets); specialisation (experts seeing only their own field).
Essence of management: coordination is not a separate function. It is needed in planning, organising, staffing, directing and controlling, and at every level, so it runs through all of management.
| Feature of coordination | Meaning |
|---|---|
| Integrates group efforts | Links many people's work into one pattern |
| Ensures unity of action | Everyone acts towards one common goal |
| Continuous process | Goes on as long as the organisation exists |
| All-pervasive | Needed in every function and at every level |
| Responsibility of all managers | Top, middle and lower managers all coordinate |
| Deliberate function | Managers plan it; it does not happen by itself |
| Why coordination is needed | What happens |
|---|---|
| Growth in size | More people and units with their own aims |
| Functional differentiation | Departments pursue their own targets |
| Specialisation | Experts see only their own field |
| Function | Coordination at an imagined spice exporter |
|---|---|
| Planning | Buying, cleaning and shipping plans match export orders |
| Organising | Clear hand-overs between cleaning and packing |
| Staffing | Enough packers before the shipping season |
| Directing | All teams told the same shipping date |
| Controlling | Progress checked against one shared schedule |
Key terms
- Coordination
Deliberately harmonising efforts for unity of action towards common goals.
- Cooperation
The voluntary willingness of people to help each other; coordination builds on it.
Exam tips
Common mistakes
- Starting the controlling process with corrective action or measurement (it starts with standards).
- Treating comparison and analysis as one step.
- Saying that every deviation goes to top management under management by exception.
- Calling coordination a sixth function, or the job of top managers only.
How marks are usually awarded
- 1 mark: correct step, benefit or feature.
- 2–3 marks: each point named and explained, tied to the case.
- 5 marks: parts answered separately; steps in order with examples; essence answers show coordination in every function.
- Case questions: quote the clue, name the step or concept, explain or suggest.