WHAT IS CONTROLLING?
The process of monitoring activities to ensure that they
The process of monitoring activities to ensure that they
are being accomplished as planned and of correcting
any significant deviations.
WHY CONTROL IS IMPORTANT?
• Planning
• Empowering employees
• Protecting the workplace
THE NATURE OF CONTROLLING
• Controlling is an ongoing process that involves
members at all levels of the organization.
• The controlling function is both anticipatory
and retrospective.
• Controlling is also considered an end function.
MAIN STEPS OF CONTROL PROCESS
1. Establishment of standards
2. Measure of performance
3. Comparison of the actual performance with the
standards
4. Taking corrective actions and realigning processes
when necessary.
ESTABLISHMENT OF STANDARDS
• The first step is to develop criteria by which
performance will be measured. Standards can
be quantitative or expressed in terms of non-
measurable elements such as customer loyalty
and goodwill, or they can be quantitative or
expressed in terms of measurable standards
such as output, money, or time.
 Time standards
 Cost standards
 Income standards
MEASURE OF PERFORMANCE
• Performance is measured by identifying
strategic control points. These include
indicators such as income, expenses, inventory,
product quality, and the number of work hours
put in by employees.
COMPARISON OF THE ACTUAL PERFORMANCE WITH
THE STANDARDS
• Management can gather data from
performance measurement and compare it
with the established standards.
TAKING CORRECTIVE ACTIONS AND REALIGNING
PROCESSES WHEN NECESSARY
• When the company determined that its
performance has deviated from the standard,
corrective actions should be taken and applied
WHAT IS CONTROLLING?
are being accomplished as planned and of correcting
any significant deviations.
WHY CONTROL IS IMPORTANT?
• Planning
• Empowering employees
• Protecting the workplace
THE NATURE OF CONTROLLING
• Controlling is an ongoing process that involves
members at all levels of the organization.
• The controlling function is both anticipatory
and retrospective.
• Controlling is also considered an end function.
MAIN STEPS OF CONTROL PROCESS
1. Establishment of standards
2. Measure of performance
3. Comparison of the actual performance with the
standards
4. Taking corrective actions and realigning processes
when necessary.
ESTABLISHMENT OF STANDARDS
• The first step is to develop criteria by which
• performance will be measured. Standards can
be quantitative or expressed in terms of non-
measurable elements such as customer loyalty
and goodwill, or they can be quantitative or
expressed in terms of measurable standards
such as output, money, or time.
 Time standards
 Cost standards
 Income standards
MEASURE OF PERFORMANCE
• Performance is measured by identifying
strategic control points. These include
indicators such as income, expenses, inventory,
product quality, and the number of work hours
put in by employees.
COMPARISON OF THE ACTUAL PERFORMANCE WITH
THE STANDARDS
• Management can gather data from
performance measurement and compare it
with the established standards.
TAKING CORRECTIVE ACTIONS AND REALIGNING
PROCESSES WHEN NECESSARY
• When the company determined that its
performance has deviated from the standard,
corrective actions should be taken and applied