HAILEY COLLEGE OF COMMERCE

Business Management

Submitted To: Dr. Prof. Ramzan Sb.

Submitted By: Muhammad Muaz

Roll No. BC 20-689

Section: B (Self-supporting)

Article Controlling (An Essential Element for Effective

Management)
Contents
Introduction................................................................................................................................................2
Definition of Controlling.........................................................................................................................2
Purpose of Controlling............................................................................................................................2
Importance of Controlling in Organizations...........................................................................................2
The Process of Controlling:.........................................................................................................................3
Identifying Objectives and Goals:...........................................................................................................3
Establishing Standards and Criteria:.......................................................................................................3
Measuring Performance.........................................................................................................................3
Comparing Performance with Standards...............................................................................................3
Taking Corrective Actions.......................................................................................................................4
Continuous Monitoring and Evaluation.................................................................................................4
Types of Control:.........................................................................................................................................4
Feedback Control....................................................................................................................................4
Concurrent Control.................................................................................................................................4
Feedforward Control...............................................................................................................................5
Benefits of Effective Control:......................................................................................................................5
Improved Performance and Efficiency...................................................................................................5
Better Decision Making...........................................................................................................................5
Enhanced Accountability and Responsibility.........................................................................................5
Increased Motivation and Morale..........................................................................................................6
Effective Risk Management....................................................................................................................6
Challenges in Controlling:...........................................................................................................................6
Resistance to Change..............................................................................................................................6
Limited Resources...................................................................................................................................6
Inaccurate Data and Information...........................................................................................................7
Ineffective Communication.....................................................................................................................7
Resistance to Accountability..................................................................................................................7
Conclusion:..................................................................................................................................................8
Summary of Key Points...........................................................................................................................8
Importance of Effective Control in Organizations..................................................................................8
Future Outlook on the Role of Controlling.............................................................................................8
Introduction
Understanding the Basics of Controlling
Controlling is a critical component of any organization, and it plays a vital role in
ensuring that the organization's goals and objectives are met. It is a process of
monitoring and evaluating performance, making necessary adjustments, and
taking corrective actions to ensure that the organization remains on track and is
achieving its desired outcomes. In this section, we will explore the definition of
controlling, its purpose, and the importance of controlling in organizations.
Definition of Controlling
Controlling is defined as the process of monitoring and evaluating performance in
order to ensure that the objectives and goals of an organization are being met. It
involves setting standards and criteria for performance, comparing actual
performance with these standards, and taking corrective actions when necessary.
Controlling is a continuous process that requires ongoing monitoring and
evaluation, and it is a crucial component of effective management.
Purpose of Controlling
The purpose of controlling is to ensure that an organization is achieving its goals
and objectives in an effective and efficient manner. By monitoring and evaluating
performance, organizations can identify areas where improvements can be made
and make necessary adjustments to ensure that they remain on track. Controlling
helps organizations to stay focused and aligned with their objectives, and it
provides a means of ensuring that resources are being used effectively and
efficiently.
Importance of Controlling in Organizations
Controlling is essential for the success of any organization, as it plays a key role in
ensuring that the organization is achieving its goals and objectives. By
continuously monitoring and evaluating performance, organizations can identify
areas for improvement, make necessary adjustments, and take corrective actions
to stay on track. Effective controlling also helps organizations to maximize their
resources, and it promotes accountability and responsibility. Additionally,
controlling helps to ensure that the organization is in compliance with relevant
regulations and standards, and it provides a means of managing risk and
uncertainty.

The Process of Controlling:

Identifying Objectives and Goals:

The first step in the controlling process is to identify the objectives and goals that
the organization wishes to achieve. These goals should be specific, measurable,
attainable, relevant, and time-bound (SMART). By having clear and concise
objectives, the organization is able to establish a clear direction and focus for its
efforts.
Establishing Standards and Criteria:
Once the objectives and goals have been established, the next step is to establish
standards and criteria for measuring performance. These standards should be
based on the goals and objectives, and should provide a basis for evaluating
performance. Standards may include financial metrics, customer satisfaction
measures, or process metrics, among others.
Measuring Performance
Once the standards have been established, the next step is to measure
performance. This involves collecting data and information about the
organization's performance and comparing it to the standards. Performance
measurement can be done through various means, such as surveys, financial
reports, customer feedback, and process audits, among others.
Comparing Performance with Standards
Once performance has been measured, the next step is to compare it with the
standards and criteria that have been established. This allows the organization to
determine how well it is performing relative to its goals and objectives. If the
performance falls short of the standards, it may indicate a need for improvement.
Taking Corrective Actions
If the performance is found to be below the standards, the next step is to take
corrective actions. This may involve adjusting processes, allocating resources, or
changing strategies, among other things. The goal of corrective action is to
improve performance and bring it back in line with the established standards.
Continuous Monitoring and Evaluation
The final step in the controlling process is to continuously monitor and evaluate
performance. This involves regularly collecting data and information, comparing
performance to the standards, and taking corrective actions as needed.
Continuous monitoring and evaluation help to ensure that the organization
remains on track to achieve its goals and objectives, and that any issues are
addressed in a timely manner.

Types of Control:
An Overview of the Different Approaches
Feedback Control
Feedback control is a type of control that uses past performance to adjust future
actions. It involves measuring the performance of an activity, comparing it to the
standards, and then using the results to make adjustments to future actions. For
example, if an organization's sales figures are below expectations, it may use
feedback control to adjust its marketing strategy and increase sales. Feedback
control is useful for correcting small deviations from the standards and for
ensuring that an organization remains on track to achieve its goals.
Concurrent Control
Concurrent control is a type of control that is performed while the activity is in
progress. It involves monitoring the activity as it is being performed, and making
adjustments as needed to ensure that it remains on track. For example, an
organization may use concurrent control to monitor the progress of a project and
make changes to the timeline or budget as needed. Concurrent control is useful
for ensuring that an organization remains on track to achieve its goals, and for
identifying and correcting issues before they become major problems.
Feedforward Control
Feedforward control is a type of control that is used to prevent deviations from
the standards before they occur. It involves using information about the future to
make adjustments to the current activity. For example, an organization may use
feedforward control to adjust its production schedule based on expected changes
in demand. Feedforward control is useful for preventing problems before they
occur, and for ensuring that an organization remains on track to achieve its goals.

Benefits of Effective Control:

The Advantages of a Strong Control System
Improved Performance and Efficiency
One of the key benefits of effective control is improved performance and
efficiency. When organizations have a clear understanding of their goals and
objectives, and when they have established standards and criteria for measuring
performance, they are better able to focus their efforts and optimize their
resources. Effective control helps organizations to identify areas for improvement,
to allocate resources where they are needed most, and to make informed
decisions about how to achieve their goals.
Better Decision Making
Another benefit of effective control is better decision making. When organizations
have accurate and up-to-date information about their performance, they are
better able to make informed decisions about how to achieve their goals.
Effective control also helps organizations to identify trends and patterns, to
identify opportunities for improvement, and to respond to changes in the
environment.
Enhanced Accountability and Responsibility
Effective control also enhances accountability and responsibility. When standards
and criteria have been established, and when performance is being monitored
and evaluated, individuals and teams are more accountable for their actions and
decisions. This increased accountability helps to ensure that everyone is working
towards the same goals, and that everyone is doing their part to achieve the
organization's objectives.
Increased Motivation and Morale
Effective control can also increase motivation and morale. When individuals and
teams have clear goals and objectives, and when they are held accountable for
their performance, they are more motivated to perform at their best. Effective
control also helps to ensure that everyone is working together towards a common
goal, which can increase collaboration and teamwork, and boost morale.
Effective Risk Management
Finally, effective control is an important tool for effective risk management. By
monitoring and evaluating performance, organizations are better able to identify
and manage risks. Effective control also helps organizations to be proactive in
addressing potential risks, and to take appropriate action to mitigate or avoid
them.

Challenges in Controlling:
Overcoming Obstacles to Effective Performance Management
Resistance to Change
One of the main challenges in controlling is resistance to change. People may be
resistant to change because they are comfortable with the status quo, or because
they are afraid of the unknown. This resistance can make it difficult to implement
new processes or to make changes to existing ones, even if those changes are
necessary for the organization to achieve its goals. To overcome resistance to
change, it is important to involve stakeholders in the controlling process, to
provide clear and concise communication, and to provide training and support as
needed.
Limited Resources
Another challenge in controlling is limited resources, such as time, money, or
manpower. When resources are limited, it can be difficult to allocate sufficient
resources to the controlling process, or to perform the necessary measurements
and evaluations. To overcome this challenge, it is important to prioritize the
controlling process and to allocate resources effectively.
Inaccurate Data and Information
Accurate data and information is critical for effective controlling. If the data and
information used in the controlling process is inaccurate, it can lead to incorrect
conclusions and decisions. This can result in the implementation of ineffective
strategies, or the allocation of resources in the wrong areas. To overcome this
challenge, it is important to ensure that the data and information used in the
controlling process is accurate and reliable, and to use multiple sources of
information if possible.
Ineffective Communication
Effective communication is also critical for effective controlling. If communication
is ineffective, it can result in misunderstandings, confusion, and a lack of
cooperation among stakeholders. To overcome this challenge, it is important to
establish clear and concise communication channels, to involve stakeholders in
the controlling process, and to provide regular updates and feedback.
Resistance to Accountability
Finally, resistance to accountability can also be a challenge in controlling. When
people are not held accountable for their actions, it can result in a lack of
motivation and a decrease in performance. To overcome this challenge, it is
important to establish clear accountability and performance metrics, and to
enforce consequences for non-compliance.
In conclusion, there are several challenges in controlling, including resistance to
change, limited resources, inaccurate data and information, ineffective
communication, and resistance to accountability. To overcome these challenges,
it is important to involve stakeholders in the controlling process, to allocate
resources effectively, to use accurate data and information, to establish clear and
concise communication, and to enforce accountability. Effective controlling can
help organizations to achieve their goals and objectives, and to ensure they
remain on track to success.

Conclusion:
The Significance of Controlling in Organizations
Summary of Key Points
In this article, we discussed the process of controlling and the different types of
control. We began by outlining the steps involved in the controlling process,
including identifying objectives and goals, establishing standards and criteria,
measuring performance, comparing performance with standards, taking
corrective actions, and continuous monitoring and evaluation. We then explored
the different types of control, including feedback control, concurrent control, and
feedforward control.
Importance of Effective Control in Organizations
Effective control is essential for organizations to achieve their goals and
objectives. It helps organizations to monitor performance, identify deviations
from the standards, and take corrective actions as needed. Through the use of
control, organizations can ensure that they remain on track to success, and that
they are able to adjust their efforts as needed to achieve their goals.
Future Outlook on the Role of Controlling
The role of controlling is likely to continue to be an important aspect of
organizational management. As organizations become more complex, the need
for effective control is likely to increase. New technologies may also play a role in
the future of controlling, by providing new ways to measure performance and
monitor progress. The future outlook for controlling is positive, as organizations
continue to recognize the importance of effective control in achieving their goals
and objectives.
In conclusion, controlling is a critical aspect of organizational management.
Through the use of control, organizations can ensure that they remain on track to
success and that they are able to achieve their goals and objectives. Effective
control is likely to continue to be an important aspect of organizational
management in the future, and new technologies may play a role in shaping the
future of controlling.