Controlling
Core rules
- Controlling is measuring actual performance against standards and taking corrective action.
- Process: set standards, measure performance, compare actual with standards, analyse deviations and take corrective action.
- Planning and controlling are inseparable: planning sets standards; controlling checks them. Without planning, control has no yardstick; without control, planning is incomplete.
- Types: feed-forward control (before), concurrent control (during) and feedback control (after).
- Critical point control focuses on key result areas; management by exception attends only to significant deviations.
- Deviations may be positive or negative; both need analysis.
Worked example
A shirt factory sets a standard of maximum 5% defective pieces. Actual defects are 8%. The manager measures 8%, compares it with 5%, finds a 3 percentage-point adverse deviation and investigates. Cause: a worn-out needle. Corrective action: replace needles and recheck. Reasoning: the standard must be measurable; comparison identifies the gap; corrective action must address the cause, not just the number.
Traps
Do not say controlling is the last function with no link to planning. Feed-forward control prevents problems; feedback control corrects after them. Management by exception does not mean ignoring all small deviations forever; it means focusing attention on significant ones. A positive deviation, such as sales above target, also needs review, not automatic celebration.