Controlling Test - 3

The process of controlling a task is complete only when corrective actions are taken for the variations or deviations that have been identified through the process of comparison of actuals with standards set. The whole process of control functions becomes redundant if corrective actions are not taken by addressing the deviations that are identified.

The audit of work done may show negative deviations due to many reasons. The reasons may be external or internal. One of the reasons for low or average performance of employees is lack of motivation or low morale among the workforce. This has to be corrected to see that performance does not get affected. The most impressive and effective corrective action is designing suitable incentives to boost performance. While designing suitable incentives organizations need to focus on the performance bench marks that would make employees aspire to earn the incentives.

responsibility accounting is a system of dividing an organization into units like divisions, departments, branches etc and facilitating the control process of an organization through planning and auditing. Thus, responsiblity accounting can be applied to investment centre, cost centre and profit centres of the organization. 

The third step in controlling is comparing the actual performance against the set standard of a particular task. When the actual raises above the mark of the set standard then such a deviation is called positive deviation. Such a deviation is also a hint towards a requisition of revising the set standard keeping in mind a continuous enhancement in performance levels.

As controlling is the doing function of management activity, that is comparing the executed work with the planned work and measuring the difference and communicating the difference with the performer, it is a practical job. It is neither physical nor a thought of mind and not a theory proposed.

The steps in controlling process are 1. setting performance standards, 2. measurement of actual performance, 3. comparing actual performance with standards set, 4 analysis of deviations or variances, 5 communicating the variance or deviations 6 taking corrective action. 

In the third step of the controlling fuction in an organization the actuals are compared against the set standards. When such a comparison is made and there is a gap in terms of quantity and quality of work done such a gap is called deviation. If the actual performance is less than the set standard then it is called negative deviation.

The techniques of controlling are budgetary control, break even analysis, return on investment, management by objectives, management audit , financial statement analysis , direct supervision and observation, Management information system, PERT and CPM techniques and self-directed control .

Controlling is about ensuring that tasks are done in the organisation according to the plan and directed towards achieving the organisational goals. Thus, controlling is a pervasive force that drives the organizational machanisms towards its goals. It is an ongoing process to keep checking the direction of progress of execution of the task towards reaching the goal. 

Control function of management is a activity that looks back at the plan made and compares it by looking forward at the work done or executed. This makes control function identify the deviations between the planned and the executed. Thus, not giving it any scope to avert the deviation at any juncture of performance.