Which Of The Following Is A Result Of Controlling?

Controlling

Controlling involves ensuring that functioning does not deviate from standards. Controlling consists of v steps: (1) fix standards, (2) measure operation, (3) compare performance to standards, (four) decide the reasons for deviations and and then (five) take cosmetic action every bit needed (run across Figure i, below). Corrective activity tin include changes made to the performance standards—setting them higher or lower or identifying new or additional standards. Performance standards are oftentimes stated in monetary terms such equally revenue, costs, or profits simply may also be stated in other terms, such equally units produced, number of defective products, or levels of quality or customer service.

Step one: Set standards by which performance will be measured. Two: Measure performance. Three: Compare actual performance with standard and identify any deviations. Four: Determine the reasons for the deviations. Five: Take corrective action if needed.

Figure 1. V-Step Control Procedure

The measurement of operation can be done in several means, depending on the performance standards, including financial statements, sales reports, product results, client satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree.

The managerial part of controlling should non be dislocated with control in the behavioral or manipulative sense. This function does not imply that managers should effort to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of direction concerns the managing director's role in taking necessary deportment to ensure that the work-related activities of subordinates are consequent with and contributing toward the achievement of organizational and departmental objectives.

Effective controlling requires the being of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. 2 traditional command techniques are budget and performance audits. An audit involves an exam and verification of records and supporting documents. A budget inspect provides information nigh where the organization is with respect to what was planned or budgeted for, whereas a operation inspect might try to determine whether the figures reported are a reflection of bodily performance. Although controlling is ofttimes thought of in terms of financial criteria, managers must likewise command production and operations processes, procedures for delivery of services, compliance with visitor policies, and many other activities inside the system.

Controls also come at a cost. It is useful to know that there are merchandise-offs betwixt having and non having organizational controls. Let'southward look at some of the costs and benefits of organizational controls.

Costs

Fiscal costs—straight (i.east., paying for an accountant for an audit) and indirect (i.eastward., people employed by the arrangement whose principal function is related to command—internal quality control, for case).

Culture and reputation costs—the intangible costs associated with any course of control. Examples include damaged relationships with employees or tarnished reputation with investors or regime.

Responsiveness pricesouth—downtime betwixt a conclusion and the deportment required to implement it due to compliance with controls.

Poorly implemented controls—implementation is botched or the implementation of a new control conflicts with other controls.

Benefits

Toll and productivity control—ensures that the firm functions finer and efficiently.

Quality control—contributes to toll control (i.e., fewer defects, less waste), customer satisfaction (i.e., fewer returns), and greater sales (i.due east., repeat customers and new customers).

Opportunity recognitionorthward—helps managers identify and isolate the source of positive surprises, such equally a new growth market. Though opportunities can also exist found in internal comparisons of price control and productivity across units.

Manage doubtfulness and complexity—keeps the organisation focused on its strategy, and helps managers anticipate and detect negative surprises and reply opportunistically to positive surprises.

Decentralized decision making—allows the organization to exist more responsive by moving decision making to those closest to customers and areas of uncertainty.

The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the director's job, too equally the all-time manner to classify accumulated cognition nearly the study of direction. Although at that place take been tremendous changes in the environs faced by managers and the tools used by managers to perform their roles, managers notwithstanding perform these essential functions.

Primal TAKEAWAYS

The command function tin can be viewed as a v-step process: (one) Institute standards, (2) Measure performance, (iii) Compare bodily performance with standards and identify any deviations, (4) Make up one's mind the reason for deviations, and (5) Accept corrective action, if needed.

Check Your Understanding

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Employ this quiz to check your understanding and determine whether to (1) study the previous section further or (two) motility on to the next section.