Which Of The Following Is Not A Step In The Control Process?

Controlling

Controlling involves ensuring that performance does non deviate from standards. Controlling consists of five steps: (1) set standards, (two) measure performance, (iii) compare performance to standards, (4) determine the reasons for deviations and then (5) have corrective action as needed (run across Effigy i, below). Corrective action can include changes made to the performance standards—setting them college or lower or identifying new or additional standards. Performance standards are often stated in monetary terms such every bit revenue, costs, or profits only may besides exist stated in other terms, such equally units produced, number of defective products, or levels of quality or client service.

Step one: Set standards by which performance will be measured. Two: Measure performance. Three: Compare actual performance with standard and identify any deviations. Four: Determine the reasons for the deviations. Five: Take corrective action if needed.

Figure i. 5-Footstep Command Process

The measurement of performance tin can be done in several ways, depending on the operation standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree.

The managerial part of controlling should not be confused with control in the behavioral or manipulative sense. This part does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the managing director's role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives.

Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibleness for deviations from standards lies. Two traditional command techniques are budget and operation audits. An inspect involves an examination and verification of records and supporting documents. A upkeep inspect provides data well-nigh where the organization is with respect to what was planned or budgeted for, whereas a performance inspect might try to determine whether the figures reported are a reflection of actual performance. Although controlling is frequently idea of in terms of financial criteria, managers must also command production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities inside the organization.

Controls also come at a cost. It is useful to know that at that place are trade-offs between having and not having organizational controls. Let'south look at some of the costs and benefits of organizational controls.

Costs

Financial costs—direct (i.e., paying for an accountant for an inspect) and indirect (i.e., people employed by the organization whose primary part is related to control—internal quality control, for instance).

Culture and reputation costs—the intangible costs associated with any form of command. Examples include damaged relationships with employees or tarnished reputation with investors or regime.

Responsiveness costs—downtime between a decision and the deportment required to implement it due to compliance with controls.

Poorly implemented controls—implementation is botched or the implementation of a new control conflicts with other controls.

Benefits

Cost and productivity control—ensures that the house functions effectively and efficiently.

Quality command—contributes to cost command (i.e., fewer defects, less waste), customer satisfaction (i.due east., fewer returns), and greater sales (i.e., repeat customers and new customers).

Opportunity recognitionorthward—helps managers place and isolate the source of positive surprises, such as a new growth marketplace. Though opportunities tin also be found in internal comparisons of cost control and productivity across units.

Manage doubt and complexity—keeps the organization focused on its strategy, and helps managers anticipate and detect negative surprises and respond opportunistically to positive surprises.

Decentralized decision makinchiliad—allows the organization to exist more responsive past moving conclusion making to those closest to customers and areas of uncertainty.

The management functions of planning, organizing, leading, and controlling are widely considered to exist the best ways of describing the managing director's task, as well as the all-time way to classify accumulated knowledge about the written report of direction. Although there have been tremendous changes in the environs faced past managers and the tools used past managers to perform their roles, managers still perform these essential functions.

KEY TAKEAWAYS

The control function can be viewed equally a 5-step procedure: (1) Establish standards, (2) Measure operation, (iii) Compare actual operation with standards and place any deviations, (four) Make up one's mind the reason for deviations, and (v) Take corrective activity, if needed.

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