Controlling
Unit VIII. Covers Meaning and importance of controlling; Planning and controlling; Steps in the controlling process.
About this unit
Controlling is the management function that ensures that activities in an organisation are performed according to plans. It measures actual performance, compares it with standards and takes corrective action when needed. This unit covers the meaning, importance and limitations of controlling, its close relationship with planning, and the steps in the controlling process, including critical point control and management by exception.
Key ideas
- Controlling is goal-oriented and pervasive.
- It is both backward-looking and forward-looking.
- Planning and controlling are inseparable: one sets standards, the other checks them.
- Steps: setting standards, measuring performance, comparing with standards, analysing deviations and taking corrective action.
- Critical point control focuses on key result areas; management by exception focuses on significant deviations.
How to prepare
- Memorise the five steps of the controlling process in order.
- Learn the importance and limitations of controlling with examples.
- Practise simple calculations of deviation and percentage deviation from a standard.
- Be ready to explain why planning and controlling are called twins.
Topics in this chapter
Meaning and importance of controlling
The nature of control.
5 questionsPlanning and controlling
The relationship between planning and controlling.
5 questionsSteps in the controlling process
Setting standards, measuring and comparing performance, and corrective action.
5 questionsPractice questions
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