Controlling: Techniques and Types
Controlling in management involves employing various techniques to monitor, evaluate, and regulate organizational activities. In this article, we'll explore different techniques and types of controlling that managers use to ensure organizational success.
Techniques of Controlling
1. Budgetary Control:
Budgetary control involves setting financial targets and comparing actual performance against budgeted figures. It helps in monitoring expenses, identifying variances, and taking corrective actions to ensure financial discipline.
2. Management Information Systems (MIS):
MIS utilizes technology to collect, process, and disseminate information relevant to decision-making and performance evaluation. It provides managers with real-time data to monitor progress and make informed decisions.
3. Management by Objectives (MBO):
MBO involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives for individuals and departments. Performance is evaluated based on the achievement of these objectives, promoting accountability and alignment with organizational goals.
4. Statistical Techniques:
Statistical techniques, such as variance analysis, trend analysis, and regression analysis, are used to analyze performance data and identify patterns or deviations from standards. These techniques help in understanding the causes of variances and guiding corrective actions.
5. Quality Control:
Quality control techniques, such as Six Sigma, Total Quality Management (TQM), and Statistical Process Control (SPC), focus on maintaining and improving product or service quality. By monitoring quality indicators and implementing quality improvement initiatives, organizations ensure customer satisfaction and competitiveness.
Types of Controlling
1. Feedforward Control:
Feedforward control involves anticipating problems and taking preventive action before they occur. It focuses on identifying potential issues in advance and implementing measures to mitigate risks, thus avoiding costly mistakes and disruptions.
2. Concurrent Control:
Concurrent control involves monitoring activities in real-time as they occur. It allows managers to intervene immediately to correct deviations from standards and ensure that operations remain on track. This type of control is particularly useful in fast-paced environments where timely decision-making is critical.
3. Feedback Control:
Feedback control involves evaluating performance after activities have been completed. It provides valuable insights into past performance, allowing managers to learn from mistakes, identify areas for improvement, and adjust future actions accordingly.
4. Cybernetic Control:
Cybernetic control utilizes feedback loops to maintain stability and achieve desired outcomes. It involves setting goals, measuring performance, comparing results to standards, and making adjustments as necessary to keep activities within acceptable limits.
5. Management Audit:
Management audit involves a systematic evaluation of management processes, procedures, and practices to assess their effectiveness and efficiency. It helps in identifying strengths and weaknesses in the management system and recommending improvements to enhance overall performance.
Conclusion
Controlling is a dynamic process that involves employing various techniques and types to monitor, evaluate, and regulate organizational activities effectively. By implementing appropriate controlling mechanisms, managers can ensure that resources are utilized efficiently, goals are achieved, and organizational success is sustained. Understanding the techniques and types of controlling is essential for managers seeking to maintain control over operations and drive continuous improvement within their organizations.
