Summary of Controlling

    From the study of the managerial function of controlling, certain basic truths or essentials have been implied and can be carried under "principles of controlling". Because control is just a part of the managerial function, these truths may be similar to truths in other areas of management. So generally the purpose and nature of control can be summarized under the following principles.

i.    Principles of purpose of control—Hold that controls are not for the sake of it. They should ensure that plans succeed by detecting deviations and furnishing the basis for correction of such deviations.

ii.    Principle of future directed controls—The more a control is based on the feed forward rather than simple feedback of information, the more managers have the opportunity to understand or perceive deviations from plans before they occur and take action in time to prevent them. Control like planning should be forward looking although the principle is usually ignored in practice. There are no easily available systems for performance control in the field of managing.

iii.    Principle of control responsibility—The main responsibility for the exercise of control rests in the manager charged with the performance of the particular plans involved. Delegation of authority, assignment of tasks, and responsibility for objectives rest in individual managers. It must follow that control over this work should be exercised by each of these managers.

iv.    Principle of efficiency of controls—Control techniques and approaches are efficient if they detect and highlight the nature and causes of deviations from plans with a minimum of costs or other unsought consequences. The benefits of control should outweigh the costs if controls have to be efficient.

v.    Principle of Indirect Control—The higher the quality of every manager in the managerial system, the less will be the need for direct controls.

vi.    Principle of reflection of plans—The more that plans are clear, complete and integrated, and the more that controls are designed to reflect such plans, the more effectively controls will serve the needs of managers. Controls cannot be devised without plans since their task is to ensure that plans work.

vii.    Principle of Organizational Suitability—Controls should reflect the place in the organization structure where responsibility for action lies. Controls need a clear organization structure. Since it is the function of an organization structure to define a system of roles, it follows that controls must be designed to effect the role where responsibility for performance of the plan lies.

viii.    Principle of standards—Effective controls require objective, accurate and suitable standards controls should provide a simple specific and verifiable way to measure whether planning programs are being accomplished.

ix.    Principle of critical point control—Effective control should pay attention mainly to only those areas where deviations would affect the running of the organization substantially (mainly to avoid being wasteful).

x.    The exception principle—The more managers concentrate control efforts on exceptions, the more efficient will be the results of their control. Managers should concern themselves only with significant deviations i.e. exceptionally "good" or "bad" situations.

xi.    Difference with critical point—Critical point control has to do with recognizing the points to be watched while exception has to do with watching the size of the deviation.

xii.    Principle of Flexibility of Controls—If they are to remain effective in the light of dynamic environments, controls should be flexible. If a plan fails or is changed controls should also be adjusted.

xiii.    Principles of Action—Controls are justified only if they indicate corrective action through appropriate planning, organizing, staffing and leading. If this principle is forgotten controls could become useless and wasteful of managerial and staff time.