Controlling in Management

Controlling in Management

Introduction

·        Controlling is the process of monitoring, measuring, evaluating, and correcting organizational performance to ensure that goals are achieved as planned.

·        It compares actual performance with pre-determined standards and takes corrective action when necessary.

·        According to Koontz & O'Donnell: "Controlling is the measurement and correction of performance in order to ensure that enterprise objectives and the plans devised to attain them are accomplished."

Features of Controlling

• Goal-Oriented: Ensures that organizational goals are achieved.
• Continuous Process: It operates throughout the organization and at all levels.
• Pervasive Function: Applies to all managerial levels and departments.
• Backward & Forward Looking: Based on past performance to make future improvements.
• Measurement-Based: Relies on data and metrics for decision-making.
• Action-Oriented: Focuses on corrective action wherever required.
• Closely Linked to Planning: Control is meaningful only when standards (from planning) exist.

Importance of Controlling

• Ensures Goal Achievement: Confirms that tasks and processes are on track.
• Improves Efficiency: Identifies inefficiencies and suggests corrective measures.
• Facilitates Coordination: Aligns activities across departments.
• Assists in Decision-Making: Provides data for informed decisions.
• Promotes Accountability: Holds individuals and departments accountable.
• Reduces Risk of Failure: Detects deviations early and corrects them.
• Enables Better Planning: Feedback from control helps improve future plans.

Steps in the Controlling Process

1. Setting Performance Standards:
• Quantitative or qualitative benchmarks.
• Must align with organizational goals.
2. Measuring Actual Performance:
• Collecting data through observation, reports, MIS, etc.
3. Comparing Actual Performance with Standards:
• Identifying deviations and gaps.
4. Analyzing Deviations:
• Determining causes: internal/external, controllable/uncontrollable.
5. Taking Corrective Action:
• Adjusting processes, training staff, revising plans, etc.

Types of Control

• Strategic Control: Top-level; long-term goals.
• Tactical Control: Middle-level; departmental performance.
• Operational Control: Lower-level; daily tasks and activities.

Stages of Control System

1. Establishment of Standards
2. Measurement of Performance
3. Comparison & Evaluation
4. Feedback Generation
5. Corrective Mechanism Implementation
6. Review of Control System

Control Areas in Hospitals

• Clinical Services: Quality of care, patient outcomes, infection control.
• Administrative: Staff scheduling, budget adherence.
• Financial: Cost control, revenue cycle management.
• Support Services: CSSD, pharmacy, laundry, dietary services.
• Records & Data: Accuracy of documentation, coding, and indexing.
• Patient Satisfaction: Complaints, waiting time, follow-up services.

Design of an Effective Control System

Criteria	Explanation
Accuracy	Must provide true data.
Timeliness	Provide control inputs at the right time.
Flexibility	Adaptable to changing environments.
Objectivity	Based on measurable facts.
Economical	Cost-effective to implement and maintain.
Simple & Understandable	Easy for managers to interpret and act on.
Strategic Alignment	Aligned with organizational objectives.
Action-Oriented	Should guide towards corrective action.

Behavioral Implications of Control

• Resistance to Control: Staff may resist if controls are perceived as punitive.
• Fear of Punishment: Can discourage innovation and openness.
• Reduced Motivation: Excessive control can demotivate employees.
• Positive Reinforcement: Constructive feedback can enhance performance.
• Participation: Involving employees in setting standards increases acceptance.
• Trust Building: Transparent control mechanisms foster trust.
• Feedback Loop: Should be used for improvement, not punishment.

Video Description

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