A presentation on

STEPS IN CONTROL PROCESS

By anushree pal Deepak prakash kaushik sumit N harshvardhan Vikas mishra Prashant singh

Steps in control process

The control process is a continuous flow between measuring, comparing and action. There are four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action.

1. ESTABLISHMENT OF CONTROL STANDARDS

2.MEASUREMENT OF PERFORMANCE

3.COMPARING ACTUAL AND STANDARD PERFORMANCE

4.CORRECTION OF DEVIATIONS.

Figure: Management Control Process

Desired performanc e

Implementatio n of correction

Corrective Action Plan

Analysis of causes of deviations

Actual performanc e

Measureme nt of performanc e

Comparison of actual and standard

Identificat ion of deviation

ESTABLISHMENT OF CONTROL 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. What is expected? How much deviation can be tolerated? Time controls relate to deadlines and time constraints. Material controls relate to inventory and material-yield controls. Equipment controls are built into the machinery, imposed on the operator to protect the equipment or the process. Cost controls help ensure cost standards are met. Employee performance controls focus on actions and behaviors of individuals and groups of employees. Examples include absences, tardiness, accidents, quality

MEASUREMENT OF PERFORMANCE
The second major step in control process is the measurement of performance. The step involves measuring the performance in respect of a work in terms of control standards. 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. According to Peter Drucker, it is very much desirable to have clear and common measurements in all key area of business. It is not necessary that measurements are rigidly quantitative. In his opinion, for measuring tangible and intangible performance, measurement must be: Clear, simple and rational, Relevant, Direct attention and efforts, and Reliable, self-announcing, and understandable without complicated

COMPARING ACTUAL AND STANDARD PERFORMANCE

The third major step in control process is the comparison of actual and standard performance. It involves two steps: 1. Finding out the extent of deviations, and 2. Identifying the causes of such deviations. When adequate standards are developed and actual performance is measured accurately, any variation will be clearly revealed. Management may have information relating to work performance, data, chart, graphs and written reports, besides personal observation to keep itself informed about performance in different segments of the organization. Such performance is compared with the standard one to find out whether the various segments and individuals of the organization are progressing in the right direction. When the standards are achieved, no further managerial action is necessary and control process is complete. However, standards may not be achieved in all cases and the extent of variations may differ from case to case. Naturally, management is required to determine whether strict compliance with standards is required or there should be a permissible limit of variation. Measurement of performance, analysis of deviations and their

CORRECTION OF DEVIATIONS

This is the last step in the control process which requires that actions should be taken to maintain the desired degree of control in the system or operation.

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. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient, however basic corrective action is the more effective.

Figure: Basic steps in the Control Process

Establish standards and methods of Measuring Performanc es

Measure Performanc e

Does performanc e match this Standards?

Take no Corrective action

yes
Do Nothing

references
Principles and practice of Management By- L. M. Prasad www.strategic-control.24xls.com