CONTROLLING TECHNIQUES

CONTROLLING TECHNIQUES

1. TYPES OF CONTROL

   • There are three main types: preventive (before actions occur), concurrent (during actions), and corrective (after actions), each addressing performance at different stages of operations.
     • Corrective Control: After the activity has been completed.
       • Post-action reviews.
       • Root cause analysis.
     • Concurrent Control: During the execution of the activity.
       • On-the-spot corrections.
       • Real-time monitoring systems.
     • Preventive Control: Before the activity occurs.
       • Risk assessments.
       • Training and development programs.

2. STEPS IN THE CONTROL PROCESS

   • The control process involves setting standards, measuring actual performance, comparing it to the standards, and taking corrective action to address any discrepancies.
     • Measurement of actual performance.
       • Use reports, surveys, and observations.
       • Regular performance appraisals.
     • Comparison with standards.
       • Gap analysis.
       • Trend identification.
     • Corrective action.
       • Adjust processes or targets.
       • Provide additional resources or training.
     • Establishment of standards.
       • Define quantitative and qualitative benchmarks.
       • Set performance indicators (KPIs).

3. OBJECTIVES OF CONTROL

   • The purpose of control is to verify if performance meets expectations, detect deviations, correct mistakes, and improve operational efficiency across all levels of the organization.
     • Identify deviations.
       • Recognize early signs of underperformance.
     • Verify performance.
       • Confirm output meets quality standards.
     • Correct errors.
       • Eliminate inefficiencies promptly.
     • Improve organizational efficiency.
       • Streamline operations.
       • Foster a culture of accountability.

4. CONTROL IN MANAGEMENT

   • Control is vital in management as it ensures that activities are aligned with the organization's objectives. It allows managers to monitor performance and make necessary adjustments to stay on course.
     • Ensures that actual results align with established plans.
       • Regular strategic reviews.
       • Budgetary control mechanisms.
     • It is an essential function of the administrative process.
       • Integrates planning, organizing, and leading.

5. TRADITIONAL CONTROL TECHNIQUES

   • Classic methods like budgets, audits, and reports provide structured tools for financial oversight and performance tracking, forming the foundation of many control systems.
     • Statistical Reports
       • Variance analysis.
       • Forecasting reports.
     • Financial audit.
       • Internal audits.
       • External audits.
     • Direct supervision.
       • Immediate task management.
       • Behavioral observations.
     • Budgets.
       • Operational budgets.
       • Capital budgets.

6. MODERN CONTROL TECHNIQUES

   • Contemporary approaches such as TQM, Six Sigma, and benchmarking focus on continuous improvement, customer satisfaction, and strategic alignment with organizational goals.
     • Total Quality Management (TQM).
       • Continuous improvement (Kaizen).
       • Customer-focused approach.
     • Six Sigma.
       • DMAIC methodology (Define, Measure, Analyze, Improve, Control).
       • Reduce process variation.
     • Benchmarking.
       • Competitive benchmarking.
       • Best practices benchmarking.
     • Management by exception.
       • Focus only on significant deviations.
       • Prioritize critical control points.

7. CHARACTERISTICS OF A GOOD CONTROL SYSTEM

   • An effective control system should be accurate, adaptable, timely, and cost-effective, allowing managers to respond quickly and make informed decisions.
     • Flexibility
       • Ability to adapt to market changes.
     • Cost-effectiveness.
       • Minimize monitoring expenses.
     • Accuracy
       • Reliable data sources.
     • Speed of response.
       • Rapid decision-making capacity.

8. LIMITATIONS OF CONTROL

   • Despite its benefits, control has limits: it cannot eliminate all errors, involves financial costs, and may cause resistance among employees if perceived as overly rigid.
     • Cannot completely eliminate errors.
       • Human error.
       • External uncontrollable factors.
     • May generate resistance to change.
       • Fear of evaluation.
       • Comfort with the status quo.
     • Involves costs.
       • Personnel, technology, and training expenses.