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MB0038 – Q.1 Explain controlling and also discuss different types of control

Answer: controlling involves monitoring the employee’s behavior and organizational processes and take necessary actions to improve them, if needed. Control is the process through which standards for performance of people and processes are set, communicated, and applied. Effective control systems use
mechanisms to monitor activities and take corrective action, if necessary.

There are four steps in the control process. They are as follows:

Step 1. Establish Performance Standards. Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard.

Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets.
Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur.

Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people.

Step 3. Compare Measured Performance Against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4. Take Corrective Action. The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track.

Types of Control:

Controls are most effective when they are applied at key places. Supervisors can implement controls before the process begins (feed forward), during the process (concurrent), or after it ceases (feedback).

Feed forward controls focus on operations before they begin. Their goal is to prevent anticipated problems. An example of feed forward control is scheduled maintenance on automobiles and machinery.

Concurrent controls apply to processes as they are happening. Concurrent controls enacted while work is being performed include any type of steering or guiding mechanism such as direct supervision, automated systems (such as computers programmed to inform the user when they have issued the wrong command), and organizational quality programs.

Feedback controls focus on the results of operations. They guide future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made.

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