Controlling
Meaning and link with planning
Controlling is measuring actual performance against standards, finding deviations and correcting them. Planning is prescriptive and controlling is evaluative; planning looks ahead while controlling looks back and also forward, because corrective action shapes future performance. They are called the inseparable twins of management.
Features
Goal-oriented, pervasive, both backward- and forward-looking, continuous, dynamic and action-oriented.
The control process
Setting standards → measuring performance → comparing performance with standards → analysing deviations → taking corrective action. Two refinements sit inside comparison: critical point control (watch key result areas) and management by exception (act only on deviations beyond an acceptable range).
Worked example
Standard output is 1,000 units; actual output is 900 units. Deviation = −100 units, that is −10%. If the acceptable range is ±5%, corrective action is required: analyse causes such as machine breakdown or absenteeism, then act. Writing out the cause analysis before the remedy is what earns full marks.
Traps that cost marks
- Claiming controlling ends the management cycle; it feeds back into planning.
- Mixing management by exception (deviations beyond limits) with critical point control (key result areas).
- Forgetting that minor deviations within range may be ignored.
- Skipping the analysis step and jumping straight to punishment or correction.