What is the last step of the control process?

The process of control follows a series of steps in order to make a control system effective. It is necessary to consider some processes for making the right decision. It helps to effective measurement of performance to manager.

Following are the major steps in the process of controlling.

• Establishment of standard
• Measurement of actual performance
• Comparison of actual performance
• Analyze the cause of the deviation
• Taking remedial or corrective action

Step #1 Establishment of Standard

The process of control starts with the establishment of a standard of performance. The standard of performance must be practically attainable and should be the basis of comparison with actual performance. The standard of performance may either tangible or intangible.

The tangible standards can be expressed in numerical terms. Again, the tangible standards can be classified as quantitative standards, monetary standards, time standards, and financial standards, etc. E.g. monetary standards are like cost, revenue, profits, and quantitative standards are production units, sales units, etc.

Intangible standards are qualitative in nature and can not be expressed in numerical terms. Intangible standards involve competency of managers, employee morale, the reputation of enterprise, good public relation, and so on.

Thus, managers need to set both quantitative and qualitative standards of performance in the organization.

Step #2 Measurement of Actual Performance

The second step in the controlling process is the measurement of actual performance achieved with that of planned performance. The measurement of actual performance must be done in accordance with laid down standards. It makes measurement easier and meaningful.

Qualitative aspects of performance must be quantified as far as possible. There must a provision of regular and systematic measurement of actual performance. The measurement should be on a future basis and should also focus on future performance. This is helpful to predict deviation in future performance. Thus, there must be a provision of measurement from time to time even when the actual performance is still in operation.

#3 Comparison of Actual Performance

This step of the control process focuses on the detailed study of actual performance and comparison against standard performance. Such comparison shows the range of deviation of actual performance with that of the standard defined. The management needs to identify the standards deviation for various parts of activities.

If the range of deviation between actual and standard performance is within the standard deviation, it can be ignored. And, if the range of negative deviation is more than the standard, it is essential to note such deviation for necessary steps. Some range of deviation might be positive and needs to be encouraged. Therefore, the comparison of actual performance is helpful to identify weaknesses and strengths in any part of the performance.

Step #4 Analyze the Cause of Deviation

A detailed study of each and every part of performance guides in finding out the causes of deviation in actual performance. These causes gained against the standard defined might be from the external environment, internal environment, defects in planning, organizational defects, and others.

External factors involve a change in price, government rules, the strategy of competitors, intense competition, etc. Internal factors involve a shortage of raw materials, inappropriate production facilities, outdated technology, lack of coordination, etc. Organizational defects involve lack of job description, lack of span of control, the imbalance between authority and responsibility, etc.

Therefore, it is necessary to detect where the problem lies so that corrective action can be taken at the right time.

#5 Taking Remedial or Corrective Action

The last step of the control process is to take corrective action so that actual performance should come to the level of standard performance. The corrective action is taken when the actual performance is not in accordance with the standard performance. The management must have a strategy to remove limitations in the internal environment through modification and to adjust itself with the external environment.

External factors are beyond the control of the management. It has to develop a strategy to minimize losses due to the change in the external environment. Generally, remedial action might involve modification and improvement in the planning, the betterment of the internal environment, organizational restructuring, placement of the right person to the right job, and betterment in directing techniques.

The above-mentioned steps are the important parts of the control process. The study of these steps is essential to make controlling efficient, effective, and productive.

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Controlling is an essential part of management process.

In fact; without the control process entire management is obsolete. Because you will not be able to know how your plan is working, is it fully implemented.

Also without control, you will not be able to actionable lead the workforce.

The control process is the functional process for organizational control that arises from the goals and strategic plans of the organization.

4 Steps of Control Process are;

1. Establishing standards and methods for measuring performance.
2. Measuring performance.
3. Determining whether performance matches the standard.
4. Taking corrective action.

These steps are described below;

1. Establishing Standards and Methods for Measuring Performance

Standards are, by definition, simply the criteria of performance.

They are the selected points in an entire planning program at which performance is measured so that managers can receive signals about how things are going and thus do not have to watch every step in the execution of plans.

Standard elements form precisely worded, measurable objectives and are especially important for control.

In an industrial enterprise, standards could include sales and production targets, work attendance goals, safety records, etc.

In service industries, on the other hand, standards might include several time customers have to wait in the queue at a bank or the number of new clients attracted by a revamped advertising campaign.

2. Measuring the Performance

The measurement of performance against standards should be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

Several methods are used for measuring the performance of the organization.

If standards are appropriately drawn and if means are available for determining exactly what subordinates are doing, appraisal of actual or expected performance is fairly easy.

But there are many activities for which it is difficult to develop accurate standards, and there are many activities that are hard to measure.

It may be quite simple, for example, to establish labor-hour standards for the production of a mass-produced item and it may be equally simple to measure performance against these standards, but in the less technical kinds of work.

For example, controlling the work of the industrial relations manager is not easy because definite standards cannot be easily developed.

The superior of this type of manager often rely on vague standards, such as the attitude of labor unions, the enthusiasm, and loyalty of subordinates, the index of labor turnover and/or industrial disputes, etc. In such cases, the superior’s measurements are often equally vague.

3. Determining whether Performance Matches the Standard

Determining whether performance matches the standard is an easy but important step in the control process. It involves comparing the measured results with the standards already set.

If performance matches the standard, managers may assume that “everything is under control”. In such a case the managers do not have to intervene in the organization’s operations.

4. Taking Corrective Action

This step becomes essential if performance falls short of standards and the analysis indicates that corrective action is required. The corrective action could involve a change in one or more activities of the organization’s operations.

For example, the branch manager of a bank might discover that more counter clerks are needed to meet the five-minute customer-waiting standard set earlier.

Control can also reveal inappropriate standards and in that case, the corrective action could involve a change in the original standards rather than a change in performance.

It needs to be mentioned that, unless managers see the control process through to its conclusion, they are merely monitoring performance rather than exercising control.

The emphasis should always be on devising constructive ways to bring performance up to a standard rather than merely identifying a past failure.