CONTROLLING

INTRODUCTION:
It’s a manager sets targets and objectives and measures to find out how far they have been achieved. Its meant to find out whether there are deviations so that a corrective action is taken to ensure everything is on course.

OBJECTIVES OF CONTROLLING.
The following are the objectives that any controlling effort is meant to achieve:

  • To keep checks on the expenses both direct and indirect expenses
  • To find out whether the objectives set are achievable
  • To ensure the company moves to the highest level possible
  • To find out what is happening, why and by whom it happens
  • To ensure all activities are carried out according to plan

CHARACTERISTICS OF CONTROLLING

  •  It is forward looking
    It seeks to correct the future actions happening in an organisation. It is based experience of control which guides the future actions of a manager
  • It is a continuous process Its where the organisation continually evaluates its systems in terms of targets , objectives, goals and so forth to find out if everything is fine By the end of the topic you should be able:
  1. To state the characteristics of controlling
  2. Highlight the objectives of controlling
  3. Discuss the importance of controlling
  • It is a management function
    It is only carried out only by managers because it involves taking corrective action which includes, mobilising for additional resources, employment of new staff, changes in the company’s operations. These are issues that cannot be delegated
  • It is carried out at all level
    Manager’s irrespective of their level carry out controlling. This is so because they have targets and objectives that they are pursuing. They often ensure operations in their areas of jurisdiction is smoothly running according to plan

STEPS TO BE FOLLOWED IN CONTROLLING

ESTABLISHMENT OF THE STANDARDS

This is a basis of measurement of performance which can be in quantitative and non quantitative terms. A standard is a benchmark on which the results are measured. There are many standards that can be made including:

Cost standards-this ensures that costs anticipated are not surpassed
Revenue standards-this ensures that the expected revenue from an activity is indeed realized if performance is to be rated as good
Physical standards-these are countables like the number of working hours, units of production per machine etc
Capital standards-this includes, rate of return on capital invested
Intangible standards-such as competency of workers and customer care success

MEASUREMANT OF PERFORMANCE
It is the measurement of the actual performance in order to know what has happened or what is likely to happen. The measurement can be done through observation of theworkers performance. It can also be in terms of reports, charts and any management
summaries. Its purpose is find out if there is anything a miss at the earliest time possible

COMPARISON OF THE ACTUAL PERFORMANCE WITH THE STANDARD
This is finding out what was set out at the beginning of the controlling period in terms of targets and objectives and what has been realized at the end of the period.

FINDING OUT FOR DEVIATIONS
While comparing the actual and the standard performance, any deviations are identified. A positive deviation means the targets were surpassed and the management requires to identify the contributing factors so that everything can be maintained. A negative deviation means that the targets set out were not realised and therefore a corrective action must be under taken in order to put everything back on course. This could include transfers of workers to other departments, re-doing the plans and increasing the funding
of the projects.

IMPORTANCE OF CONTROLLING
It is a basis for the future action because the planning is based on what has happened in the past
It helps in facilitating of cordination because everything is set out clearly in the procedures
It helps to reduce the possibility of the results not conforming to the set standards
It simplifies the supervision for the managers
It is a form of delegation within the orgainisation

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