Sunday, September 14, 2008

Learn about Controlling Process in 5 Minutes


Q1. What is Control?

Ans. Control may be defined as a process in which actual performance is compared with standard performance so that corrective actions should be taken to avoid the gap between actual and standard performance.

For Example:- Superior tells to his subordinates that the cost of product should come Rs. 40 and the really cost occurs Rs. 60. Then the cost between of Rs. 20 will be checked out by controlling.

Q2. Explain Prerequisites and characteristics of effective control

Ans. (i) It should be simple which can easily be controlled.

(ii) It should evaluate the performance.

(iii) It should require Pre-determined standard against what to measure.

(iv) It should be economical so that wastage of time, money & efforts is


(v) It should be accepted by each and every employee.

Q3. Explain control Process?

Ans. Following are the steps involved in Control Process?

(i) Setting Standard:- Standards must be set in advance which may be both

Qualitative or quantitative against which the performance of employers is to be checked.

For Example:-

(i) How much profits a Company earn.

(ii) What is the market share of the Company?

(iii) What’s about the Performance of Employee.

(ii) Measuring Performance:- In this step the Performance of all the employees are measured and compared.

For Example:- The real Performance of an employee in terms of Pieces

Produced by them should be 60% but it actually comes out 40%.

(iii) Corrective actions are taken:- Here corrective actions are taken for the Purpose of avoiding the gap between actual and standard Performance.

For Example:- In the above example 20% Performance of the employees is

Declining which can be improved by providing adequate salaries and other

Benefits such as Bonus, appreciation for work etc. should be given to avoid the gap between actual and standard Performance.

Q4. How does control act as a Feedback System?

Ans. When the employees working in the organization and may not performance

Their assigned task properly, supervisor reports to the manager. This report is

Called Feedback obtained by a manager helps in taking right steps at the right

time to improve performance of the employees in an organization.

Q5. Explain the Policies and design choices in control?

Ans. Organizations have three options in exercising control:-

(i) Centralization / delegation:- It means sharing of authority &


For Example:- Mr. A is a superior delegated his some part of authority to Mr. B

who works as “subordinate” then Mr. B will be fully responsible for the

Job assigned by Mr. A to him.

(ii) Formal or Informal:- Formal refers to the official lines of communication

Where authority and responsibility is defined and Informal is the

reverse condition of Formal.

(iii) Direct or Indirect:- Indirect control takes place in the situation where there is high quality of superior and subordinate and on the other hand where there is low quality of superior and subordinate is called Direct Control.

Q6. Explain the Strategies of Control?

Ans. Following are the four strategies of Control in an organization:-

(i) Personal Centralized Control:-

Direct Supervision

Centralized decision making

Reward & Punishment to confirm to personal authority

(ii) Bureaucratic Control:-

Grouping of tasks

Budgetary Control and Standard Cost Control

Reward and Punishment to confirm to Procedures & rules

(iii) Output Control:-

Use of responsibility accounting System

Reward & Punishment linked to Targets

Delegation of authority for decisions making

(iv) Cultural Control:-

Strong Stress as Selection, Training & development, of Personnel

Rewards and Career Progress