Controlling is the process of ensuring that the activities in an organisation are performed as per plans. Controlling is goal oriented, pervasive, continuous, action oriented and forward looking. It helps in accomplishing organisational goals, judging accuracy of standards, making efficient use of resources, improving employee motivation, etc. Planning and controlling are inseparable twins of management. Planning is an intellectual process involving thinking and controlling involves a process of evaluating and verifying whether the decisions have translated into desired action. The standards of performance provided by planning serves as basis of controlling. On the other hand, controlling is necessary to monitor the progress of activities to ensure that they are in accordance to plans. Steps in controlling are setting performance standards, measurement of actual performance, comparison of actual performance with standard performance, analysing deviations and taking corrective actions.
Techniques used in measuring actual performance are personal observation, sample checking and performance reports. Controlling significant deviations in key areas of business is critical for its success. The technique used for this is Critical Point Control that focuses on key result areas (KRA’s) which are critical for the survival of an enterprise. The technique used for acceptable range of deviations is ‘Management by exception’ that states that only significant deviations beyond permissible limit should be analysed.