Definition of Management Control Process

Control process consists in verifying whether everything occurs in conformity with the plans adopted, the instructions issued and principles established. Its main objective is to point out weaknesses and mistakes and give suggestions for corrective measures and thus their reoccurrence. Thus the control process involves a comparison of actual with the expected and locates the deviations, if any.

Management control process aims to bring to light that everything is taking place in accordance with the plan and thus it compel events to confirm to plan. One can say control is forward looking since it aims to locate any deviation from the plan with a view to incorporate corrective action.

Features of Control Process

A Management Function: this control is performed by managers inorder to confirm that everything is taking place inconformity with the plan

Dynamic Process: When ever plans are implemented, the controlprocess becomes imperative to check if there is any deviation.

Continuous Activity: It is a continuous process. Managementcontinuously reviews its actions so as to confirm their performance is in the right track. This helps to avoid wastage of resources.

Control is forward looking: control is futuristic. It is future oriented.One cannot control which relates to past or what had already happened. It keeps check on the performance that is currently carried out or going to be carried out in near future.

Control closely related to planning: It is rightly said that “There canbe a planning without controlling but there cannot be a controlling without planning”. This so because, it is the plan or the budget against which the actual performance can be compared to arrive at deviations if any.

Steps in Management Control Process

The management control process contains the following basic steps. The manager first of all establishes performance standards which can be used as a yard stick to measure and compare the actual with the standards. The end result of comparison is the spotting out deviations. Then corrective actions are designed to correct errors and also avoid their reoccurrence. Generally, the steps involved in the management control process are listed below:

Establish Standards

Measuring Actual Performance

Comparison of Actual with the Standard

Taking Corrective Actions.

The Above Listed Steps are Briefly Explained Below

Establish Standards: The standards are the yard sticks using whichthe actual can be verified. The standards are the expected out comes. The set standards should be simple and easily understood by the workers so that they have a clear idea of what is expected from them in terms performance. The standards set should be precise, attainable, accurate, flexible and realistic.

Measuring Actual Performance: In this stage the actual performanceis measured and compared with that of the set standards. This process of measuring is easy if the standards are set in quantitative terms. However in certain cases setting quantitative standards is not possible, hence manager sets standards in qualitative terms.

Comparison of Actual with the Standard: under this step theactual performance is compared with the standards. This is said to be the heart of control process. Because, this step brings to light whether the performance is taking place in accordance to the plan or not. For example the supervisor in the production department compares the actual output with that of the scheduled one, then he is said to carry out the control process for his production department.

Taking Corrective Actions: The last step in the control processis taking corrective action, in case any deviation is identified. Deviation means difference between the standard and the actual. If the deviation is found to be insignificant then immediate correction may not be required only its reoccurrence can be checked. On the other hand if the deviation id significant its and serious the management must take corrective action immediately and gives suggestions for controlling its reoccurrence.

Follow–up: It is the responsibility of the management to seewhether all the suggested recommendations are properly implemented and followed. In some organization the control process has become ineffective because of failure on the part of management to check the follow up actions.

Essentials of a Good Mangement Control Process

The management control process to be effective should posses the following characteristic features:

Suitability: The control system followed by the management should be suitable for the type of activity to which it is applied.

Comprehendible: The control system followed must be easily understandable by all in the organization. Especially by those, who are going to use it.

Economical: The control system should be cost effective. It must not a costly system which is beyond the means of the organization. With less expenditure the control system must bring more benefit to the organization.

Flexibility: The control system followed by the management should be flexible enough to give room for changes.

Less time consuming: The control process must commune less time and produce results expeditiously. Because the aim of the control system is to check deviation in near future.

Forward looking: The control system should be futuristic. Because one cannot control what had happened already in the past.

Objectivity: The standards set are objective in nature rather than being subjective. This helps to avoid bias in appraisal of performance.
Conformity to organizational structure: To avoid confusion the responsibility of people in the organization in carrying out the control process should be clearly demarcated for this purpose control should confirm to organizational pattern of the concern.

Indicate critical points: An efficient control system must not only high light the deviations but also pin point the critical areas of management.