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Amit Kumar Sharma, Lovely Professional University Unit 7: Controlling

Unit 7: Controlling Notes

CONTENTS
Objectives
Introduction
7.1 Concept of Control
7.2 Characteristics of Control
7.3 Relationship between Planning and Control
7.4 Steps in Control Process

7.4.1 Establishing Standards
7.4.2 Measuring and Comparing Actual Results against Standards
7.4.3 Taking Corrective Action
7.5 Types of Control
7.6 Summary
7.7 Keywords
7.8 Self Assessment
7.9 Review Questions

7.10 Further Readings

Objectives

After studying this unit, you will be able to:
Establish planning-control relationship

Discuss process of control
Explain types of control

Introduction

Controlling is an important function of management. It is the process that measures current
performance and guides it towards some predetermined objectives. Under primitive management,
control was undertaken only when something went wrong and the objectives of control was to
reprimand the person responsible for these events and take action against him. The modern
concept of control envisages a system that not only provides a historical record of what has
happened to the business as a whole but also pinpoints the reasons why it has happened and
provides data that enable the manager to take corrective steps, if he finds he is on the wrong
track. Therefore, there is no intention to punish the person for wrongdoing, but to find out the
deviations between the actual performance and the standard performance and to take steps to
prevent such variances in future.
The concept of control is often confused with lack of freedom. The opposite of control is not
freedom but chaos or anarchy. Control is fully consistent with freedom. In fact, they are inter-
dependent. Without control, freedom cannot be sustained for long. Without freedom, control
becomes ineffective. Both freedom and accountability are embedded in the concept of control.

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