Page 291 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 16: Controlling

16.3.3 Taking Corrective Action Notes

After comparing the actual performance with the prescribed standards and finding the deviations,
the next step that should be taken by the manager is to correct these deviations. Corrective
action should be taken without wasting of time so that the normal position can be restored
quickly. The manager should also determine the correct cause for deviation.

Taking corrective action can be achieved in the following way:
1. The manager should try to influence environmental conditions and external situations in
such a way as to facilitate the achievement of goals.

2. He should review with his subordinates the instructions given earlier so that he may be
able to give clear, complete and reasonable instructions in future.
3. There are many external forces which cannot be adjusted by the manager. They have to be
accepted as the facts of the situation, and the executives should revise their plans in the
light of these changing forces.

16.4 Types of Control

Most control methods can be grouped into one of the two basic types:
1. Past-oriented controls.
2. Future-oriented controls.

Past-oriented Controls

These are also known as post-action controls and measure results after the process. They examine
what has happened in a particular period in the past. These controls can be used to plan future
behaviour in the light of past errors or successes.

Future-oriented Controls

These are also known as steering controls or feed-forward controls and are designed to measure
results during the process so that action can be taken before the job is done or the period is over.
They serve as warning-posts principally to direct attention rather than to evaluate, e.g., Cash
flow analysis, funds flow analysis, network planning etc.

16.5 Control Techniques

A variety of tools and techniques have been used over the years to help managers control the
activities in their organisations. There can be control in different perspectives. Time control
relate to deadlines and time constraints, material controls relate to inventory control etc. Various
techniques of control require varied control aids such as:

1. Budgeting: A budget is a statement of anticipated results during a designated time period
expressed in financial and non-financial terms. Budgets cover a designated time period –
usually a year. At stated intervals during that time period, actual performance is compared
directly with the budget targets and deviations are quickly detected and acted upon. E.g.
of Budgets: Sales budget, production budget, capital expenditure budget, cash budget,
master budget etc.

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