A Departure Control System (DCS) in airlines automates airport operations, ensuring efficiency by tracking passenger check-ins, baggage, and boarding. Similarly, the controlling function in management monitors activities to align them with plans, preventing deviations and ensuring organizational goals are met.
Example: A DCS updates passenger statuses (e.g., checked-in, boarded) to ensure smooth airport operations, reflecting the role of controlling in maintaining order.
Controlling is the process of ensuring that organizational activities conform to planned activities, using resources effectively to achieve predetermined goals. It involves measuring performance, comparing it with standards, and taking corrective actions.
Characteristics:
Example: A manager checks production output against targets to ensure alignment with the company’s sales plan.
Controlling ensures organizational success by aligning activities with goals and optimizing resources.
Key Benefits:
Example: A New York import-export company used computer monitoring to detect employee theft, recovering $3 million, showcasing control’s role in discipline.
Despite its importance, controlling faces challenges:
Example: A small retailer may avoid installing an advanced inventory control system due to high costs, limiting control effectiveness.
Planning and controlling are interdependent, often called “inseparable twins” of management.
Example: A company plans to reduce defects by 5%; controlling measures actual defects and adjusts processes, informing future quality plans.
Controlling follows a systematic five-step process:
Example: Saco Defense revised production schedules and trained staff to meet delivery targets after identifying delays, demonstrating corrective action.
Standards in Functional Areas:
| Production | Marketing | Human Resource Management | Finance & Accounting |
|---|---|---|---|
| Quantity, Quality, Cost | Sales Volume, Sales Expense | Labor Relations, Turnover | Capital Expenditures, Liquidity |
Traditional Techniques:
Modern Techniques:
Example: FedEx used budgeting and KPI tracking to enhance profitability, a blend of traditional and modern control techniques.
Short Answer Type: Question: 'Planning is looking ahead and controlling is looking back.' Comment.
Answer: The statement is partially correct. Planning is forward-looking, setting future goals based on forecasts, while controlling is backward-looking, reviewing past performance against standards. However, both are interconnected: planning guides controlling by providing standards, and controlling improves future planning by highlighting deviations and corrective actions needed.
Controlling ensures activities align with plans, driving organizational success by achieving goals, optimizing resources, and motivating employees. It judges standard accuracy, maintains discipline, and coordinates efforts but faces challenges like external factors, employee resistance, and high costs. The process involves setting standards, measuring performance, comparing results, analyzing deviations, and taking corrective actions. Planning and controlling are inseparable, with planning providing standards and controlling refining plans. Traditional techniques include observation and budgets, while modern methods like ROI, PERT, and MIS enhance efficiency.