The managerial function of controlling is the

measurement and correction of performance

in order to make sure that enterprise
objectives and plans devised to attain them
are being accomplished.
Planning and controlling are closely related.
Without objectives and plans, control is not
possible because performance has to be
measured against some established criteria.
The Basic Control Process
It involves only three steps:
Establishment of Standard: standard is the
main criteria of performance. They are the
selected points in an entire planning program
at which measures of performance are made
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.
Measurement of performance: the
measurement of performance against
standards should ideally be done on a
forward-looking basis so that deviations may
be detected in advance of their occurrence
and avoided by appropriate actions.
Correction of Deviation: Standards should the
various positions in an organization structure.
Corrections of deviation is the point at which
control can be seen as a part of the whole
system of management and can be related to
the other managerial functions.
Types of Critical Point
Standards
Physical Standards
Cost Standards
Capital Standards
Revenue Standards
Program Standards
Intangible Standards
Goals as Standards
Benchmarking
 It is an approach for setting goals and
productivity measures based on best
industry practices.
 There are three types of benchmarking:
1. Strategic bench marking
2. Operational benchmarking
3. Management benchmarking
Control Devices
Budgeting: Budgeting is the formulation of
plan for a given future period in numerical
terms. As such, budgets are statements of
anticipated results, either in financial terms or
in non-financial terms.
Non-budgetary: the use of statistical data of
many aspects of the operations, special
reports and analyses of specific areas, the
operational audit.
Program Evaluation and Review Technique
(PERT) :
o Developed by the Special Projects Office of the
U.S. Navy.
o PERT is a time-event network analysis system
in which the various events in a program or
project are identified, with a planned time
established for each.
Information Technology: the developments in
information technology greatly facilitate
organizational control at a relatively low cost.
Information technology has promoted the
development of MIS (management
information system). It is defined here as a
formal system of gathering, integrating,
comparing, analyzing and dispersing
information to the enterprise in a timely,
effective and efficient manner to support
managers in performing their job.