Session 10: Concept of Controlling PDF

HRC2501: UNIT III Session 10: Concept of Controlling Session 10 Concept of Controlling Content Introduction 10.1 What is controlling in an organization? 10.2 Importance of controlling in organizational activities 10.3 Process of controlling 10.4 Types of co...

HRC2501: UNIT III Session 10: Concept of Controlling Session 10 Concept of Controlling Content Introduction 10.1 What is controlling in an organization? 10.2 Importance of controlling in organizational activities 10.3 Process of controlling 10.4 Types of controlling Summary Assessment Question Introduction Dear learning Partners, You have already learnt that the managerial practices should be practiced in an organization to a considerable extent. The final and most important practice is the concept of controlling. This concept will be covered in this session and initially we have to identify what this concept is in an organization. Any concept should have its own importance for learning it and it will be covered next and the process of controlling afterwards. Finally different types of controlling mechanisms will also be discussed. Hope you will enjoy the session. Good Luck...! 10.1 What is controlling in an organization? Controlling, you must definitely have experienced. In terms of group assignments, departmental goal achievements, organizing events, organizational mission accomplishments even in our homes when celebrating birthdays, anniversaries someone control others. It is also the concept of controlling when studying it in it’s simplest form. Copyright ©2023, The Open University of Sri Lanka (OUSL) 81 HRC2501: UNIT III Session 10: Concept of Controlling You need a kind of broad understanding on this concept. We will be going for it from this session onward. What is controlling? As Marriam Webster Dictionary defines controlling is, Inclined to control others' behaviour. If someone guide you against a set of standards, that is controlling. Controlling should be there for someone to achieve his/ her goals and objectives. In Management arena controlling is, the process which involves setting and communicating performance criteria for individuals, groups, and technological systems. Also, Any procedure that guides actions toward organizational goals is referred to as controlling. Simply it is ensuring the achievement of goals and objectives within the context it is operating. Controlling describes the regular implementation of control in an organization. Control is viewed as an event that involves both the individual components of the control process and the external circumstances that influence it. According to Robbins and Coulter (2018), controlling is the process of monitoring, evaluating, and improving work performance. Accordingly, the following characteristics are aligned with the concept of controlling. Universality Regardless of the organization or function that needs to be controlled, the control method should always be the same. Continuity Continual adjustment and review in response to how environmental variables behave. Dynamism Control function needs to be changed in response to change in plans, objectives and to behaviour of environmental variables. Copyright ©2023, The Open University of Sri Lanka (OUSL) 82 HRC2501: UNIT III Session 10: Concept of Controlling Omnipresence The types, boundaries, and scope of control functions differ. Future Benefits from both positive and negative previous experiences can be used to assist shape a successful future path of action. Final function It is essential for ensuring that organizational goals are achieved. Influencing Control is intended to organize the circumstances and guide the behaviour. Source: Dědečková, (2020) Activity 10.1 https://www.managementstudyguide.com/controlling_function.htm Read this article. You will find some more...! 10.2 Importance of controlling in organizational activities Now you know controlling is making a considerable contribution for organizational wellness. It will be helpful if we could attend to some of the important concept of controlling as well. Following are some of the importance of controlling for an organization. 1. Effectiveness of plans: If plans want success, managers must track progress, provide feedback, and lead their staff. Simply control. 2. Consistency of organizational activities: Policies and procedures help organizations to ensure a consistent organizational practice. Copyright ©2023, The Open University of Sri Lanka (OUSL) 83 HRC2501: UNIT III Session 10: Concept of Controlling 3. Effectiveness of organization: An activity's effectiveness is determined by how effectively its results relate to the unit's larger goals, or how well it aids in the accomplishment of those goals. 4. Efficiency of organization: Controls are perhaps the managerial role on which efficiency depends the most. The more output for the fewest inputs, the better, as that means that value is being added to the resources, is how productive a unit is and how well people have managed it. 5. Feedback: More than any other management role, efficiency likely rely on controls. It is frequently used to demonstrate how productive a unit is and how well individuals have managed it. The more output produced with fewer inputs, the better, as this suggests that resources are being enhanced in value. 6. Support for decision making: The ultimate goal of controls is to support managers' decision-making. Control alerts managers to issues and provide them with data they need to make decisions. Activity 10.2 Does your organizational controlling providing you the above advantages? Elaborate. 10.3 Process of Controlling You have already learnt the base of controlling concept. Now you need to know how this concept can be implemented. Let’s See. Copyright ©2023, The Open University of Sri Lanka (OUSL) 84 HRC2501: UNIT III Session 10: Concept of Controlling The process of Controlling Figure 10.1: The process of Controlling Step 01: Establishment of Standards Establishment of standards against which to compare the organization's actual performance is the first stage in the controlling process. An organization must develop attainable, understandable, and reasonable criteria for achievement and must clearly communicate its expectations to the workforce. Both quantitative and qualitative standards can be established. The standards of an organization can be expressed in quantitative terms, such as the number of units of a product to be produced and sold, the amount of money to be made, the expenses to be paid, etc. When speaking in qualitative terms, an organization's standards are represented in words like the length of time it takes to serve a customer, the level of staff engagement, etc. Step 02: Measurement of Actual Performances The second step of the controlling process is to measure the actual performance in a trustworthy and an impartial way after the organization has defined the standards. To make comparisons correct, the actual performance of the organization should be measured in the same units in which the standards are defined. This can be done using a variety of ways, including sample checking, personal observation, etc. The actual performance is typically evaluated after the performance. Organizations do, however, occasionally Track performances as they happen. Copyright ©2023, The Open University of Sri Lanka (OUSL) 85 HRC2501: UNIT III Session 10: Concept of Controlling Step 03: Comparison of Actual Performances with the standards The actual performance of the organization is compared to the stated standards (in the first phase) is the third step of the controlling process. Organizations can identify the difference between the standards and actual performance by comparing the two. Step 04: Analysing Deviations An organization's standards and actual performance are rarely aligned with one another. Typically, there is always some difference between the performance that was expected and what occurs. Analysing the deviations is the fourth step in the controlling process. An organization must establish an acceptable performance range to achieve this. Additionally, a company should place more concern on large deviations and less on minor ones. Step 05: Taking Corrective Actions Taking remedial action is the last and most important phase in the controlling process. There is no need to take remedial action if the deviations are within the management's established acceptable ranges. However, appropriate and prompt managerial actions are needed if the deviations exceed the established acceptable limit in the critical areas. Activity 10.3 Write your own life examples for each step of controlling. 10.4 Types of Controlling Controlling takes different phases in different places. You might have experienced these differences. These differences are logical. Leaders control their followers depending on the types of followers and the types of situations. Studying these different types of controlling will be important for you to understand the management. Let’s learn them. Copyright ©2023, The Open University of Sri Lanka (OUSL) 86 HRC2501: UNIT III Session 10: Concept of Controlling There are 05 types of controlling methods organizations can use. 1. Direct Control In direct organizational control, leaders are directly providing performance guidelines and followers need to follow those guidelines as they are. Each worker receives detailed written instructions, outlining the detailed task he has to do as well as the tools to be used in doing the task and the management fully plans out each worker's task at least one day in advance. As a result, control is openly exercised, and authority remains within the management. 2. Technical Control Under technical control, the organization's physical structure, such as its machinery and information technology take the place of the manager's individual power. Ex: The assembly line, where the line takes the role of the foreman, is the classic illustration of technological control. In other words, the line performs that task rather than a foreman giving instructions. 3. Bureaucratic Control Power is rested within the social structure in a bureaucracy. Rules determine who does what, how to do it, who is superior to whom, how promotions are made, and other aspects of management. Bureaucracy establishes guidelines for the horizontal and vertical labour distributions within the company, as well as the career system inside the organization. 4. Output control The measuring of outputs is the foundation of output control. Unlike direct, technical, and bureaucratic supervision, it is focused on the output of employees' labour rather than their behaviour. In order to manage output, one can do it qualitatively (by measuring the usefulness of an application for mobile phones) or quantitatively (by setting wages based on piecework). 5. Normative control The target of control is again changed under normative control. The behaviour of workers’ is the focus of direct, technical, and bureaucratic control, while worker output is the focus of output control. Copyright ©2023, The Open University of Sri Lanka (OUSL) 87 HRC2501: UNIT III Session 10: Concept of Controlling Then, normative control targets the norms, thoughts, and values of the workforce. When it is difficult to evaluate production and when bureaucratic rules are ineffective as a guide, normative control is thought to be more successful. The notion behind normative control is that under such circumstances, efficiency can be attained by establishing a normative community where people share the same values and perspectives, negating the need to instruct them or monitor their performance. Activity 10.4 Evaluate and explain the type of controlling mechanism, your organization or your educational institution uses. Summary Controlling is any procedure that guides actions toward organizational goals and objectives. It is a process. Organizations need to follow the process in order to achieve better results. Firstly, performance standards need to be set to the organizational activities. Then actual performances of that activities need to be measured. Afterwards a comparison between set performance standards and actual organizational performances needs to be done. Again, an analysis needs to be done based on the deviations. And finally, corrective actions should fill the gap between the set standards and actual performances. When organizations follow the process to its maximum many advantages can be achieved by the organization. There are different types of controlling mechanisms viz. direct control, technical control, beau acratic control, output control and normative control. Review Questions “Controlling is one of the main functions in Management and managing an organization strongly aligned with the accuracy of the function of controlling”. 1. What do you mean by the function of controlling in organizations? 2. Describe the accuracy of the above statement in your own words. 3. Briefly Explain the process of controlling, selecting any organization at your convenience as an example. 4. Define different types of controlling with examples. Copyright ©2023, The Open University of Sri Lanka (OUSL) 88 HRC2501: UNIT III Session 10: Concept of Controlling References Dědečková, N. (2020). Control, controlling and its objectives in the organization. SHS Web of Conferences Rennstam, J. 2017. Control. In Scott, C.R. & Lewis, L. (Eds.), The International Encyclopedia of Organizational Communication (pp. 1–22), Wiley & Sons. Robbins, S. P. & Coulter, M. A. (2018). Management (14th Ed). Pearson Copyright ©2023, The Open University of Sri Lanka (OUSL) 89