Reading: The Controlling Function

Business Management for Every Enterprise

Unit 3

The Controlling Function

The Need for Controlling

As a manager or department head you will agree that though we all try to achieve zero errors, it is not always possible. 

There is always room for further improvement in every action we take.

Control is both a process and a result – the Managers / Department Heads use the control methodology to measure and monitor the processes / activities to ensure they are following designated path towards successful achievement of the desired results and objectives.

Control is a continuous process – control methodology in not meant for a limited time period. Once initiated for a process or activity, it has to be continued for improvement of the process or activity on a continual basis. 

Control is a coordinated integrated system – control methodology is based on facts, for this various data needs to be collected. For control to be effective, data collected for various purposes, though different in nature, must be compared and contrasted.

Features of Controlling Function

Control is forward looking – Organizations measure and control the past performance of processes in an effort to improve future performances.

What happened in the past cannot be changed, but what is yet to come in the future can be controlled by implementing appropriate corrective & preventive measures.

Control Methodology RCA - CAPA

RCA – Root Cause Analysis
CAPA – Corrective Action & Preventive Action

Control methodology 

While doing a work, when an error is detected:
- Initiate corrective of the error (correction is an immediate action which is taken the moment an error is detected
- Initiate Root Cause Analysis to find the cause of error
- Initiate appropriate Corrective Actions / Preventive Actions based on these findings
- Initiate periodic review and monitoring to find out the effectiveness of the actions taken

Importance of Controlling Function

Communication and exchange of information are important sources for initiating control mechanism through discussion and debates.

Various problems or setbacks are encountered in the Planning, Organizing, Staffing, and Directing stages are highlighted through discussions and control actions are initiated accordingly.

Discussions can also be termed as exchange of information.

Information made available should be adequate and appropriate to enable authorized personnel to take necessary action. 

Information is the basis for initiating control by finding out the root cause of the various problems and issues and taking appropriate corrective and preventive actions to resolve issues.

Control methodology ensures that the set standards are maintained in the execution of a task, so that the desired results are achieved.

Control methodology prevents deviations by ensuring timely actions. If the error has already taken place then control rectifies this by taking appropriate actions.

Delegation of Authority

One important factor of controlling activity is delegation of authority.

The Manager / Department Head or any other senior person who is entrusted with the responsibility of ensuring that a task is executed successfully should also be given the authority to initiate suitable controlling function to prevent / correct deviations in that task.

Without authority for controlling function, the person will not be able to take effective corrective and preventive actions to correct and/or prevent errors. This will have an adverse effect on the quality of performance and results achieved, and will ultimately reflect on the organization’s objectives & business goals. 

An organization’s business reputation is reflected in the degree of success of its objectives & goals.

Essential Characteristics of Controlling Functions

The control characteristics of controlling functions
- The control standards / benchmarks established by the organization:
- Established with accuracy as needed by the organization
  - Flexible so that they can be modified to suit the changing org needs
- Should be cost-effective.
- Kept simple and easy to understand
- Should be practically achievable