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Define Controlling. Explain the process of controlling.
Controlling is a core function of management that ensures that organisational activities are carried out effectively and efficiently by stated goals and objectives. It entails monitoring performance, comparing it to set standards, discovering inconsistencies, and taking corrective measures as needed to guarantee that organisational objectives are met.
The process of controlling typically involves the following steps:
Establishing Standards: The first stage in managing is to set standards against which performance may be monitored. These standards can take the shape of budgets, goals, benchmarks, or other criteria that specify desirable levels of performance.
Measuring Performance: Once standards have been defined, the next stage is to assess actual performance. This entails gathering data and information regarding the activities and processes carried out within the organisation.
Comparing Performance with Standards: After assessing performance, the next step is to compare it to established standards. This comparison identifies any discrepancies between actual and desired performance levels.
Analysing Deviations: Once deviations have been identified, the next step is to determine why they exist. Understanding the core causes of deviations is critical in determining whether they are caused by internal factors, external influences, or something else.
Taking Corrective Action: After analysing the deviations, management must take corrective action to fix any issues and put performance back in line with established standards. This could include altering processes, reallocating resources, providing more training, or taking other steps as needed.
Follow-Up and Monitoring: Because controlling is an ongoing process, it is critical to regularly monitor performance and assess the effectiveness of corrective actions implemented. This may entail developing feedback channels, performing regular reviews, and making adjustments as needed to keep performance on track.
Overall, the process of controlling assists managers in ensuring that organisational activities are aligned with objectives, resources are used efficiently, and deviations from expected performance are addressed immediately to preserve organisational effectiveness and achieve intended outcomes.