1. Simple

A good control system should be easy and clear to understand and operate. Control system that is not easily understood by the users is of no value. The instruction should be unambiguous to follow. The controlling techniques which are complicated such as complex mathematical formula, charts, graphs, advanced statistical method should be as far as possible avoided because such techniques may fail to communicate the meaning.

2. Timeliness

The information of management should be get in proper time so that corrective actions can be taken in time. There are many problems in the organization which require immediate attention. If the information about such problems is not evaluated in  a right time, then such information may become useless and damage may occur. The means of information must be collected, processed, and evaluated quickly.

3. Flexibility
It is important that controlling system should be flexible enough to keep pace with changing conditions of the business. The effective control system must be flexible enough to adjust to any adverse changing conditions of the business. Flexibility in control system can be introduced by preparing alternative plans for varios solutions of problems.

4. Focus on strategic plan

An effective control system focus on those critical areas where deviations from standards are most likely to occur or would do the greatest damage. The control system should also concentrate on those areas where corrective action can be most effectively applied.

5. Integration

The people work in harmony with organizational policies when the controls are consistent with corporate values and culture. The control system has become an integrated part of the organizational environment. It has become effective in every organization.

6. Economic feasibility

The controlling system should be economical and worth its costs. The controlling system should be economical to operate. It should be easy to comprehend and apply by the concerned person. It should never be too costly in terms of both financial and human resources.

Setting of Control Standards
The first step in any control process is to set the control standards against actual performance so the results can be controlled. Standards represent the criteria against which actual performance is measured. The standard of control may be quantitative or qualitative. The standards which are measured and expressed is known as measurable standards. The standard must be achievable. The standard must be set up keeping in mind the resources of the organization and as far as possible standards must be set up in numerical or measurable terms. The achievement of various targets can make the specific persons responsible. The levels of achievement are also decided in advance. The Control standards should also be consistent with the organizational goals. 

Measurement of Performance
After the establishment of standards, the next step is the measurement of actual performance. Finding out deviations becomes easy through measuring the actual performance. The measurement of performance should be accurate and reliable with the standards. It should be clear, simple and objective. The tangible standards can be measured in an easy way as it can be expressed in units, cost, money terms, etc. If the performance of manager has to be measured the quantitative measurement becomes difficult. The Performance of a manager cannot be measured in quantities.The measurement of qualitative performance such as human relations, employee morale, etc. can be done through psychological tests and surveys. The Measurement of performance is an important part of the control process.

Control is a continuous process. It is an integral part of management. The process of control consists of the following elements:

 

  1. Setting of control standards
  2. Measurement of performance
  3. Comparing actual and standard performance
  4. Taking corrective action

1. Setting of Control Standards
The first step in any control process is to set the control standards against actual performance so the results can be controlled. Standards represent the criteria against which actual performance is measured. The standard of control may be quantitative or qualitative. The standards which are measured and expressed is known as measurable standards. The standard must be achievable. The standard must be set up keeping in mind the resources of the organization and as far as possible standards must be set up in numerical or measurable terms. The achievement of various targets can make the specific persons responsible. The levels of achievement are also decided in advance. The Control standards should also be consistent with the organizational goals. 

2. Measurement of Performance
After the establishment of standards, the next step is the measurement of actual performance. Finding out deviations becomes easy through measuring the actual performance. The measurement of performance should be accurate and reliable with the standards. It should be clear, simple and objective. The tangible standards can be measured in an easy way as it can be expressed in units, cost, money terms, etc. If the performance of manager has to be measured the quantitative measurement becomes difficult. The Performance of a manager cannot be measured in quantities.The measurement of qualitative performance such as human relations, employee morale, etc. can be done through psychological tests and surveys. The Measurement of performance is an important part of the control process.

3. Comparing Actual and Standard Performance
The third step in control process is the comparison of actual performance with the standards set. It is very important to compare the actual performance with the planned targets. Such comparison will reveal the deviation between actual and desired results. Quantitative standards are easy to compare but qualitative standards are complex to measure. Direct personal observation and reports may be used to identify the deviation in performance where results are intangible. The deviation may be positive or negative. Positive deviation implies that actual performance is higher than the standards. Negative deviation means actual performance is less than the standards. But, if the performance matches the standards, management may assume that everything is under control.

4. Taking Corrective Action
The last step of controlling process is to take corrective action on the result of the comparison. The purpose of control is not only to analyze the deviation but also to initiate remedial measures to take corrective actions. If actual performance does not meet the standard, the manager must initiate corrective action. Such corrective action may be (a) revision of standard if they seem to be unattainable, (b) revision of strategies, policies and procedures, (c) additional employee training, (d) greater motivation, (e) change in the existing technique of direction, (f) product design improvement etc. No remedies are needed when there is a balance between actual and standard performance.

 

 

 

The essential requirement of effective control are as follows:

1. Simple

A good control system should be easy and clear to understand and operate. Control system that is not easily understood by the users is of no value. The instruction should be unambiguous to follow. The controlling techniques which are complicated such as complex mathematical formula, charts, graphs, advanced statistical method should be as far as possible avoided because such techniques may fail to communicate the meaning.

2. Timeliness

The information of management should be get in proper time so that corrective actions can be taken in time. There are many problems in the organization which require immediate attention. If the information about such problems is not evaluated in  a right time, then such information may become useless and damage may occur. The means of information must be collected, processed, and evaluated quickly.

3. Flexibility
It is important that controlling system should be flexible enough to keep pace with changing conditions of the business. The effective control system must be flexible enough to adjust to any adverse changing conditions of the business. Flexibility in control system can be introduced by preparing alternative plans for varios solutions of problems.

4. Focus on strategic plan

An effective control system focus on those critical areas where deviations from standards are most likely to occur or would do the greatest damage. The control system should also concentrate on those areas where corrective action can be most effectively applied.

5. Integration

The people work in harmony with organizational policies when the controls are consistent with corporate values and culture. The control system has become an integrated part of the organizational environment. It has become effective in every organization.

6. Economic feasibility

The controlling system should be economical and worth its costs. The controlling system should be economical to operate. It should be easy to comprehend and apply by the concerned person. It should never be too costly in terms of both financial and human resources.

7. Suitability:

The control system should be appropriate according to the nature, needs and circumstances of the organization. It must be adjustable according to type, nature, needs and requirements of the organization.

9. Corrective action

A good control system should be able to take proper corrective actions to avoid the gap between standard and actual performance. It helps to improve future performance. An effective control system not only checks and identifies deviation. It also helps in programming the solutions in correcting such a deviation.