The Steps in the Control Process

The methods used for control of the various resources, techniques and procedures are basically the same regardless of where it is being done or what is being controlled. The process has three major steps:

    Step One: Establishment of Standards

The first step in the control process is to establish plans which serve as the standards against which performance is measured. In establishing the standards for control purposes, critical points must be selected. These are the points at which if anything went wrong, there would be devastating effects on the organization. It is difficult to control every aspect of the firm. Standards is the measure by which performance is judged as "good" or "bad", "acceptable" or "unacceptable". The standards set may be of many kinds and among the best are the verifiable goals and objectives, which stipulate the desired results. These goals and objectives may be in physical terms e.g units to be produced, sales volume, products rejected, profits earned, customer complaints etc.

    Step Two: Measurement of Performance

This step involves measurement of actual performance in the light of the standards set. The objective of this step is to answer the question of "how well are we doing in meeting the standards set for our activities?" Where possible standards should be such that they can detect deviations before they actually occur so that appropriate corrective action can be effected.

    Step Three: Correction of Deviations

Taking the necessary corrective action is actually what completes the control process. Deviations from standards can either be positive or negative. When positive, then performance is better than expected and even if this is good, it is necessary to evaluate the standards and check for their accuracy and adequacy. Correction of negative performance is the point at which control is seen as part of the whole system. Corrective action is the step at which all other managerial functions are integrated into the process of control. The overlap of control with other functions of management demonstrates the systems unity of the managers job and the integrated nature of the managerial process.

Note

The three steps interrelate. For example corrective action cannot be taken unless the measurement of performance dictates so. Measurement cannot take place unless there is a yardstick against which to measure.Controlling is the activity that makes right what is wrong and is therefore one of the most challenging activities that managers perform.

Controls therefore help managers to answer a very important question, "how well are we doing?" It also helps them decide on ways to improve performance that is below standard.