Mastering the Four Steps of Controlling: Improving Organizational Performance through Effective Management

Controlling

The management function that monitors the work effort.

Controlling is a crucial function of management that involves monitoring the performance of employees and comparing it with organizational goals and targets. Proper controlling ensures that the organization is on the right track, and corrective measures can be taken if necessary.

There are four steps involved in the controlling process. The first step is setting standards, which means establishing the criteria or benchmarks by which performance will be measured. These standards could be in the form of quality, quantity, time or cost.

The second step is measuring performance, which involves comparing the actual performance data with the established standards. The information gathered through this step provides feedback to managers and helps them identify areas that require improvements.

The third step is analyzing the performance data, which involves identifying the causes of deviations from the standards. The analysis may reveal whether the deviations are due to poor performance by employees or faulty processes or equipment. This information helps in making informed decisions about how to address the deviations.

The fourth and final step is taking corrective action, which involves taking steps to correct the deviations from the established standards. Such action may include retraining employees, modifying processes or replacing faulty equipment.

In conclusion, controlling is a crucial function of management that involves monitoring and measuring the performance of employees and processes. Good controlling helps organizations to achieve their goals and objectives effectively and efficiently.

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