Controlling Test - 2

There are five/six steps in the process of controlling which starts with setting performance standards, communicating the standards, measuring the actual performance, looking for or measuring the deviations of performance from the set standards and lastly taking corrective actions. Thus, making the process of controlling effective. 

The process of controlling starts with planning the task and ends with taking corrective actions to rectify the variations or deviations occured. Thus, if we need to take corrective actions we need to access the deviations. Thereby looking into the plan and comparing with the actuals is an integral part of controlling function.

All functions of management like planning, co-ordinating, controlling, directing, communicating etc is an all inclusive and pervasive function performed by people working at any level in the organisation. For example the lower level employees also plans his activity, co-ordinates with fellow collegues and higher up supervisors and also works to meet the standards of performance set by him or his superiors to ensure that the work performance meets the organizational goals. 

As in the understanding of the term management, means - managing all the resources that is man, machines, machanisms, money and methods of the organisation or company perfroming effectively and efficiently to achieve the organisational and individual goals. Thus, auditing the functions of management means checking the performance of the company.  

There are many ways to measure performance of an employee. some of them are Graphic rating scale, Forced distribution method, management by objectives, 360 degree performance appraisal system, personal observation, sample checking, performance reports written by supervisors/ clients etc., 

The techniques of controlling are direct supervision and observation, financial statement analysis, budgetary control, break even analysis, return on investment, management by objectives, management audit, management by objectives (MBO) , MIS- Management Information Systems, PERT and CPM and self control . 

Defective machinery has to be understood as a machinery that is not in a effective working condition. A machinery that is defective or not in a working condition can be repaired or replaced depending upon the kind of problem that is encountered while using the machinery. 

As the material used is defective the quality of the end product would also be defective. Thus, the corrective action to be taken by the materials management department or the stores manager is to check the quality of the material purchased and change the quality specifications of the material used.

Setting performance standards through the process of planning forms the first function of management control. Work plan or finance plan or strategic plan gives a direction for performance and audit. Thus, without laying down work plan it would be like working without a foresight of the path that has to be undertaken. 

Controlling being an integral part of the management process is a prime function of the process. Small , medium and large business organizations necessarily are engaged in the process of managing their business units efficiently and effectively through the management process. Controlling aims at ensuring that the organizational resources are used effeciently and effectively, thus making it necessary for all kinds of business concerns to execute the control function.