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What Is Controlling In Business Administration

Control in a broader context refers to a person or thing set as a standard to relate to. Control also refers to a mechanism or device used to determine the behavior of a system or an apparatus. Services like Cox internet offer parental control features. These tools allow parents to monitor their children’s internet use. 

Control in management refers to the process through which organizations identify errors. It involves adherence to standards and procedures to steer businesses away from deviation. Controlling is among the four core functions of management. The other three are planning, organizing, and leading. 

What Are the Features of Controlling? 

Organizations use various controlling methods to achieve the best results in their day-to-day operations. An effective control system has a wide range of features. It helps companies achieve their goals. Businesses that follow controlling practices can manage their resources. These mechanisms help companies evaluate standards designed to ensure accuracy. Other features include: 

  • Setting order and discipline 
  • Boosting staff morale 
  • Allowing quick and effective revision of standards 
  • Minimizing errors 
  • Improving the overall performance 

What is the Relationship between Planning and Controlling? 

Planning and controlling are two of the most important functions of management. Organizations cannot achieve their objectives without the implementation of planning and controlling. The two complement and facilitate each other in many ways. Companies have to rely on mechanisms (control systems) to implement plans. Following is a list of differences between planning and controlling: 

Planning 

  • First step 
  • Forward-looking procedure 
  • Building block of a business 
  • Gives business a sense of direction 

Controlling 

  • Last Step 
  • Backward-looking procedure 
  • Final block of a business 
  • Helps Business follow directions 

What Are the Different Types of Control Systems? 

Companies follow an amalgam of control systems to achieve best results. Control systems are important as they prevent problems and protect a company’s assets. They act as safeguards against deviation and errors. Here are five types of control systems: 

Feedback Control 

Feedback control involves the tools to extract historical information for future use. Organizations exercise feedback to collect information about a previous activity. Managers analyze the information to take informed decision in the future. Feedback control is always referred to as post-action control. However, the data can be used to improve future performance and results. In addition, this mechanism allows organizations to adhere to their objectives. 

Concurrent Control 

Organizations implement concurrent control methods to monitor ongoing processes. It involves the use of several procedures that allow companies to make real-time observations. This is why it is referred to as current control. However, this method is not proactive, but it can prevent companies from facing difficult situations.

Feel tracking is an example of a concurrent control method. This allows employees to monitor the movement of vehicles in real-time and helps managers to prevent accidents. 

Feedforward Control 

Feedforward is a buzzword among the communication and management circles and is a proactive method. It allows organizations to monitor and control processes to get optimal output. It also prepares organizations for potential disruptions and deviations because it is designed to anticipate future instances. Managers can take corrective measures ahead of time via feedforward control methods.

Homeostasis is an example of Feedforward Control method. 

Behavioral Control 

This method involves the evaluation of decision-making in organizations and businesses and doesn’t evaluate the results of the decisions. An effective behavioral control mechanism allows companies to allocate their resources where needed. Status reports and standard operating procedures are examples of a behavioral control mechanism. Moreover, assignments and project plans are also included in behavioral control. For instance, many companies place signs on bathrooms emphasizing the importance of washing hands. Some enforce a dress code policy. Both of these are examples of behavioral control practices. 

Financial & Non-financial Controls 

These mechanisms allow companies to determine their budgeting strategies and other processes. These processes aid in the identification of areas of importance and improvement. For instance, every company makes use of forecasts to predict sales and profit figures. That budgeted data is then compared with the actual performance. Budget and financial ratios are examples of financial controls. Whereas, quality management is an example of a non-financial control method. 

What Are the Pros and Cons of Controlling? 

Controlling offers organizations various opportunities, among which a major perk is that it allows companies to preserve time and energy. Managers can prioritize tasks by identifying the most important ones. Another advantage is that allows companies to take corrective action ahead of time. 

On the contrary, controlling can create several constraints for companies, especially businesses. The biggest is that controlling does not take into account external factors. High costs, no direction for quantitative standards, and employee resistance are other cons. 

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Written by Admin

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