Which functions of management are involved when establishing and measuring standards of performance?
What is Controlling?Controlling is regarded as one of the most important management functions. In fact, without the presence of a control function, the entire management function will become obsolete. The management will not be able to determine if the plan is working properly or not, or if it is properly implemented or not. Show
The main objective of the control process is to make sure that the activities within an organisation are going as per the planning. Control process helps the managers in determining the level of performance of their respective organisations. The following are the steps involved in the control process: 1. Establishing standards and methods or ways to measure performance 2. Measuring actual performance 3. Determining if the performance matches with the standard 4. Taking corrective action and re-evaluating the standard Let us go ahead and discuss the above mentioned steps in detail. Establishing performance standards: Although setting of goals and standards are part of the planning process, it also plays an important role in controlling. The main objective of controlling is to guide the business towards the desired target. Therefore, if the employees or members of a business are well aware of the target, it will result in more awareness about the target. The managers must communicate the goals and objectives clearly to the employees without any ambiguities. An organisation in which everyone is working towards a common objective has a better chance to grow and prosper. Measuring actual performance against the set standards : The immediate action that managers need to take after being made aware of the goals, is to measure their actual performance and compare that with the standards already set. This helps in identifying if the plan is actually working as was thought to be. Once a plan is implemented, the task of managers is to monitor the plans and evaluate. Managers must be ready with an alternative plan or suggest corrective measures in case the plan is not going as was intended. This can be done only when managers are measuring their actual performance. The way performance can be evaluated is to measure it in monetary terms, hiring financial experts. This step of controlling is helpful in detecting future problems and issues and is essential for taking decisions immediately so that the company is able to recover from the losses. Determining if the performance matches with the standard: Checking if the performance matches with the standards is very important. It is an important step in controlling. In this step, the results are measured with the already set standards. Taking corrective action and re-evaluating the standard: Corrective measures need to be taken when there is a discrepancy. Correct actions provide protection against loss and stop them from reappearing in future. This was all about the topic of Steps in Control Process, which is an important topic of Business Studies for Commerce students. For more such interesting articles, stay tuned to BYJU’S. What is the Control Function of Management?The controlling function of management generally means organizational control. That is, its a process by which an organization (through its managers) influences its sub-units and members in the process of attaining organizational goals and objectives. Back to: BUSINESS MANAGEMENT Because organizations develop standards and goals, controlling necessarily ensures that individual, group, and organizational performance does not deviate from standards. Controlling should not be viewed as negative - such as manipulative of an individuals personality, values, attitudes, or emotions. Rather, managers simply make certain employee activities are consistent with achieving organizational goals and objectives. Monitoring and Controlling PerformanceControlling concerns monitoring and influencing several types of performance:
As such, managers at all levels of the organization are involved in the controlling process. Controls are generally considered to be part of a system or process to make certain processes and rules are followed and results are being obtained. The effect of controls, when properly designed, is to improve company performance. What is the Process for Management Control?Controlling consists of the following steps: Performance StandardsThe first step is to establish performance standards. These standards should be in the form of goals and objectives. These should flow from the organizations mission and vision. The standards should be capable of assessment - specific and measurable. Measure PerformanceThe next step is to measure performance. The method for measuring performance will vary based on what type of performance is being measured. When measuring performance based upon types of metrics:
Compare Actual Performance Against StandardsThe next step is comparing the levels of performance against expectations. A common form of comparison is an audit - the examination and verification of records and supporting documents. Two common forms of audit include:
To the extent that they serve as leading, lagging, and pacing performance metrics, they enable managers to take corrective action on any deviations from goals before too much damage has been done. Corrective ActionThe next step is to take necessary corrective action when performance deviates negatively from performance objectives. Corrective action can involve motivating performance or adjusting standards. This necessarily requires a clear understanding of what gave rise to the deviations from standards Controlling across various organizational units or functions can become extremely complex. What is a Management Performance System?Organizations increasingly employ performance management systems to implement the Management Control Process. Some of the most commonly known Management Performance Systems include:
Some other common approaches include:
Advantages and Disadvantages of Organizational ControlsOrganizational controls provide numerous advantages:
The primary disadvantages include:
What do you call the function of management where it measures the performance?Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary.
Which function provide set of standard performance?The controlling function provides a set of standard performance. Managers as well as subordinates-work according to it.
Which functions of management standards are set?Controlling is an important and an indispensable function of management. It aims at managing the managerial actions by setting the standards and identifying the deviations of actual performance as against the set standards.
Which is the ability to establish standards of performance for each organization?Organizational control typically involves four steps: (1) establish standards, (2) measure performance, (3) compare performance to standards, and then (4) take corrective action as needed.
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