Steps in Controlling Process
Controlling is a critical management function that involves monitoring, evaluating, and regulating organizational activities to ensure they align with established plans and standards.
This process consists of several interconnected steps. Here we will explore the 5 key steps of controlling process:
Establishment of Standards
The first step in controlling process is to establish a standard. Standards serve as benchmarks or targets against which actual performance is measured.
They can be quantitative or qualitative and are established based on organizational objectives, industry norms, past performance, and market conditions. Quantitative standards may include production targets, sales quotas, or financial metrics, while qualitative standards could focus on quality, customer satisfaction, or employee behavior.
Establishing clear and realistic standards is crucial as they provide direction, define expectations, and facilitate performance evaluation.
Measurement of Performance
Once standards are in place, the next step in controlling is to measure actual performance against these standards. This involves collecting relevant data, observing activities, and assessing outputs to determine how well organizational objectives are being met.
Measurement methods may vary depending on the nature of tasks and objectives, ranging from quantitative metrics such as output volume or revenue to qualitative assessments like customer feedback or employee evaluations.
Accurate performance measurement provides insights into operational effectiveness, identifies areas of improvement, and enables informed decision-making.
Comparison of Actual vs. Standard Performance
After measuring performance, the next step is to compare actual results with established standards. This comparison reveals deviations or variations between expected and actual performance levels. Deviations can be positive, indicating performance surpassing standards, or negative, signaling underperformance or discrepancies.
Analyzing these differences helps managers understand the extent and nature of deviations, identify potential issues or opportunities, and prioritize areas for corrective action. Effective comparison requires reliable data, consistent measurement techniques, and a clear understanding of performance expectations.
Identification of Causes
Once discrepancies between actual and standard performance are identified, the next step is to determine the root causes of these deviations.
Causes can stem from various factors, including inadequate resources, inefficient processes, external factors, human error, or organizational constraints. Identifying underlying causes requires thorough analysis, problem-solving skills, and collaboration among stakeholders.
Managers may use techniques such as root cause analysis, process mapping, or performance reviews to uncover the factors contributing to deviations. Understanding the causes enables targeted interventions and prevents recurring issues in the future.
Taking Corrective Actions
Based on the analysis of deviations and their underlying causes, managers must implement corrective actions to address performance gaps and realign activities with established standards. Corrective actions may involve process improvements, resource reallocation, training initiatives, policy changes, or strategic adjustments.
It’s essential to develop action plans, set clear objectives, allocate responsibilities, and monitor progress to ensure effective implementation. Taking timely and appropriate corrective actions minimizes negative impacts, optimizes performance outcomes, and fosters continuous improvement within the organization.
Hence, these are the 5 steps in controlling process in management.
Sujan Chaudhary holds a Bachelor in Business Administration (BBA) degree and is currently pursuing an MBA degree. He loves to share his business knowledge with the rest of the world.