WRITE ON MANAGERIAL CONTROL

PRINCIPLES OF MANAGEMENT
AN ASSIGNMENT PRESENTED TO:
DR UKO JOHN (PhD)

DEPARTMENT OF MANAGEMENT & SOCIAL

SCIENCE

VERITAS UNIVERSITY ABUJA

(THE CATHOLIC UNIVERSITY OF NIGERIA)

BY

OHANELE ADAEZE.C.
MATRIC NO-
VUG/ACC/808/08

MAY 18TH 2010

TABLE OF CONTENT

Meaning and Concept..........................................................1.0

Definitions of Control by some authors.............................2.0

Characteristics / Nature / Features of Control.................3.0

Scope or Areas of Control or Managerial Control..........4.0

Basic steps in the process of controlling............................5.0

Conclusion...........................................................................6.0

Reference..............................................................................7.0
 MANAGERIAL CONTROL.

What do you mean by Managerial Control?

1.0 Meaning and Concept

Control is a fundamental managerial function. it is the process of regulating

organizational activities so that actual performance conforms to expected
organizational standards and goals and ensures that necessary corrective action is
taken. There are different concepts of control which are used in different contexts.

In the first concept control is an executive function.

In the second concept it is intimately connected with planning.

In the third concept it is a process which guides activity towards some pre-determined
goals.

In managerial terminology, control is ensuring work accomplishment according to

plans. It is a process of ensuring that activities are producing desired results. In short,
control is an executive function involving three elements, i.e., standards, evaluative
and corrective action.

2.0 Definitions of Control

2.1 Some important definitions of control are as follows:

• In the words of Dalton E. macfarland, "Control, in its managerial sense, can be

defined as the presence in a business of that force which guise to a pre-
determined objective by means of pre-determined policies and decisions."

• In the words of Koontz and O'Donnell, "Controlling is the measuring and

correcting the activities of subordinates to ensure that events conform to plans."

• In the words of E.F.L. Brech, "Control is the process of checking actual

performance against the agreed standards or plans with a view to ensuring
adequate progress and satisfactory performances."

• According to Henry Fayol, "Control consists in verifying whether everything

occurs in conformity with the plans adopted, the instructions issued and
principles established. It has for object to point out weaknesses and errors in
order to rectify them and prevent recurrence."

• In the words of Theo haimann, "Control is the process of checking to determine

whether or not plans are being adhered to, whether or not proper progress is
being made towards the objectives and goals and acting. It is necessary to
correct any deviation."

3.0 Characteristics / Nature / Features of Control

3.1 Managerial Function: Control is a basic managerial function of every manager and
the responsibility of line authority.
Continuing and Never Ending Activity: Control is a continuing and never ending
activity. It involves constant analysis of objectives, policies, procedures, positions,
performance standards etc. It starts from planning and continues till so long the
enterprise survives.
3.2 Exercise at all levels: Control is an exercise at all levels of management, i.e., top
level, middle level and bottom level.
3.3 Forward Looking: Control is a forward looking activity and not a past activity.
Control initiates remedial measures to minimize the mistakes that had happened in the
past.
3.4 Dynamic Process: Control is a dynamic process. It is flexible and not rigid.
Control results in corrective actions which may lead to change in the performance of
other functions of management. Since management is handling a business entity
which keeps on changing, managerial control is also dynamic. Management will be
failing in its duty if its approach is not dynamic.
3.5 Corrective Action: The purpose of control is achieved only when corrective action
is taken on the basis of feedback information. It is the action which adjusts
performance to predetermined standards whenever deviations occur. A good system of
control facilitates timely action so that there is minimum waste of time and energy.
3.6 control is People-oriented: The approach to managerial control is people-oriented.
Control is attained thought people and not thought things. It is people who exercise
control.

4.0 Scope or Areas of Control or Managerial Control

The scope or areas of control or managerial control are very wide. A well-designed
plan of managerial control includes all management activities. According to Holden,
Fish and Smith, the main areas of control or scope of control are as follows:

4.1 Control over Policies: The success of any business organisation, to a large extent,
depends on how far its policies are implemented. In many enterprises, policies are
controlled through policy manuals.
4.2 Control over Organisation: Control over organisation is a accomplished through
the development of organisation chart and organisation manual.
4.3 control over Personnel: The statement that management is getting the work done
through people, underlines sufficiently the importance of control of personnel.
4.4 Control over Wages and Salaries: Such type of control is done by having
programmes of job evolution and wage and salary analysis. This work is done
either by personnel department or industrial engineering department.
4.5 Control over Costs: Cost control is exercised by the cost accountant by setting cost
standards for material, labor and overheads and making comparison of actual cost
data with standard cost. Cost control is supplemented by budgetary control system.
4.6 Control over Methods: control over methods is accomplished by conducting
periodical analysis of activities of each department. The functions performed,
 method adopted and time devoted y every employee is studied with a view to
eliminating non-essential motions, functions and methods.
4.7 Control over Capital Expenditure: It is exercise through a system or evolution of
projects, ranking of projects in terms of their ranking power and appropriating
capital to various projects.
4.8 Control over Production: Control over production is effected through studies about
market needs, attitude of customer and revision in product lines. Efforts are made
to simplify and rationalize the line of products.
4.9 Control over Research and Development: Such activities are highly technical in
nature, so no direct control is possible over them.
4.10 Control over External Relations: Public relations department is responsible for
controlling the external relations of the enterprise. It may prescribe certain
measures for other operating departments which are instrumental in improving
external relations.
4.11 Overall Control: It is effected the through budgetary control. Master plan is
prepared for overall control and all the departments are made to involve
themselves in this procedure. For effective control through the master plan, active
support of top management is essential.

5.0 What are the basic steps in the process of controlling?

Managerial control system involves four steps. First of all, the manager establishes the
standards of performance to ensure that performance is in accordance with the plans.
After this under the second step, the manager will measure the performance, and
under the third step he will compare it with predetermined standards. This will lead
the manager to know whether the actual performance has come up to the expected
standards or if there is any deviation. In case of any deviation, the manager will take
immediate corrective action which is the final step in the step of controlling.

5.1 Establishing Standards of Performance:

The first and the foremost step in the control process is the establishment of standards
for the measurement of performance. They are the expression of goals of the
enterprise or the department. Standards may be tangible or intangible, vague or
specific. But they must be established and expressed in such a way that people
concerned can easily understand them and the accomplishment can be measured
without any difficulty. Standards of performance should be simple, accurate, precise,
flexible, acceptable, workable and capable of achievement with reasonable amount of
cost, effort and time.

5.2 Measure of Performance:

The second step in the control process is the measurement of actual performance. In
this connection, the management should not depend upon guesswork as far as meeting
of standards is concerned. It should measure the actual performance and compare it
with the standards. The quantitative measurement should be done in cases where
standards have been set in numerical terms. This will make the evaluation quite easy
and simple. In other cases, the performance should be measured in terms of qualities
factors.

5.3 Comparing Performance with Standards:

The third step in the control process is the comparison of performance with
established standards. Managers often base their comparisons on information provided
in reports that summarize planned versus actual results. Such reports may be presented
verbally or in written form or through computerized process. Management by
exception principle suggests that managers should be informed of a situation only
when control data shows a significant deviation from the set standards. It will save
manager's time by bringing to their attention only those conditions which need their
attention.

5.4 Taking Corrective Action:

The fourth and final step in the control process is taking corrective action. When
significant deviation from standards are detected, corrective action obviously called
for. This involves taking certain decisions by the management like re-planning or
redrawing of goals or standards, reassignment or reclassification of duties. It may also
necessitate reforming the process of selection and training of workers. Thus, control
function may require change in all other managerial functions. If the standards are
found to be defective, they will be modified or set up again in the light of
observations. Joseph massie has pointed out that a manager may commit two types of
mistakes at this stage:

(i) Taking action when no action is needed.

(ii) Failing to take action when some corrective action is needed. A good and
effective control system should provide some basis for helping the manager
estimate the risks of making either of these types of errors. Of course, the final
test of control system is whether correct action is taken at the correct time.

6.0 CONCLUSION

From the body of this assignment it was understood that control is a fundamental
managerial function and also a process of regulating organizational activities to
achieve a desire result. Managerial control covers policy control to external relation
control. Managerial control coordinates all the activities of it subordinate in an
organization. Without managerial control the system of coordinated and smooth
running of the organisation’s activities will not be achieved. It also creates a hieratical
order in an organisation.

7.0 REFERENCE

www.rajputbrotherhood.com/.../managerial-control.html