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Basic Steps in Management Control Process in an Organization

October 20, 2011  by: rekhas  Points: 12   Category: Others  Earning $0.50   Views: 2396

planning and controlling are key elements of management in any organization. Here are some basic and important steps in control process to avoid goal clashes and improve employee performance.


Organizations can create customized control systems to suit their needs. All types of control processes require some basic steps. These are as follows-

Determining Areas to Control

Managers determine key control areas based on organization's goals and objectives, defined during the planning process.

Establishment of Standards

Standards help to measure actual performance against predetermined performance. It also indicates the expected performance levels. There are different types of control standards such as- quantitative, qualitative, cost standards, and time standards. Standards help employees realize what the organization expects from them and how organization will evaluate their performance.

Standards also help to identify personal limitations and weaknesses of employees, such as, lack of experience, need for training and so on. Thus, standards decrease the negative effects of possible goal incongruence or clashing of goals. Unforeseen and contingent situations can lead to changes in predetermined standards of the organization. In order to avoid too many changes in the determined standards, organizations use "cushion" or permissible deviations from the standards.

Measuring Performance

After the creation and establishment of controlling standards, it is essential to measure the actual performance too. Such measurement should take place on a forward-looking basis where managers detect deviations and errors in early stages of production. This will help to use the proper counter solution to eliminate the problem. Managers use qualitative and quantitative standards to measure performance in the organization. Performance measurement should be accurate, reliable, simple and objective.

Comparing Performance against Standards

Comparing actual performance with control standards helps to ensure conformity with the predetermined standards. Managers use reports and information provided by their subordinates, to measure the performance standards. Some techniques like- management by exception, management by walking around work area and personal observation- help to measure employee and organizational performance. Database programs also help supervisors to query, reduce time spent on gathering data and reduces dependence on others. These techniques simplify information gathering and reduce wastage of time.

Recognizing Good Performance

Managers should appreciate positive and good performance of employees with rewards and motivating remarks. This helps to increase employee efficiency and motivates them to perform better.

Taking Corrective Actions when Necessary

It is important to take timely corrective actions in case of major deviations between performance and established standards. Managers should probe the cause of deviation and take action to solve the problem. Sometimes, managers may need to train or recruit new employees and layoff inefficient employees to prevent deviations. In some cases, established standards may not be realistic. In such times, managers can suggest modifications in the established standards.

Thus, performance standards need regular reviews with relation to changing environmental conditions and organizational situations. Control process fails when remedial and corrective actions do not take place in time.


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