Comparing actual performance against standards example of which function of the management process
What is the Control Function of Management?The controlling function of management generally means organizational control. That is, its a process by which an organization (through its managers) influences its sub-units and members in the process of attaining organizational goals and objectives. Show
Back to: BUSINESS MANAGEMENT Because organizations develop standards and goals, controlling necessarily ensures that individual, group, and organizational performance does not deviate from standards. Controlling should not be viewed as negative - such as manipulative of an individuals personality, values, attitudes, or emotions. Rather, managers simply make certain employee activities are consistent with achieving organizational goals and objectives. Monitoring and Controlling PerformanceControlling concerns monitoring and influencing several types of performance:
As such, managers at all levels of the organization are involved in the controlling process. Controls are generally considered to be part of a system or process to make certain processes and rules are followed and results are being obtained. The effect of controls, when properly designed, is to improve company performance. What is the Process for Management Control?Controlling consists of the following steps: Performance StandardsThe first step is to establish performance standards. These standards should be in the form of goals and objectives. These should flow from the organizations mission and vision. The standards should be capable of assessment - specific and measurable. Measure PerformanceThe next step is to measure performance. The method for measuring performance will vary based on what type of performance is being measured. When measuring performance based upon types of metrics:
Compare Actual Performance Against StandardsThe next step is comparing the levels of performance against expectations. A common form of comparison is an audit - the examination and verification of records and supporting documents. Two common forms of audit include:
To the extent that they serve as leading, lagging, and pacing performance metrics, they enable managers to take corrective action on any deviations from goals before too much damage has been done. Corrective ActionThe next step is to take necessary corrective action when performance deviates negatively from performance objectives. Corrective action can involve motivating performance or adjusting standards. This necessarily requires a clear understanding of what gave rise to the deviations from standards Controlling across various organizational units or functions can become extremely complex. What is a Management Performance System?Organizations increasingly employ performance management systems to implement the Management Control Process. Some of the most commonly known Management Performance Systems include:
Some other common approaches include:
Advantages and Disadvantages of Organizational ControlsOrganizational controls provide numerous advantages:
The primary disadvantages include:
What is comparing actual performance against standards?The process of comparing actual to planned performance and taking corrective action is called controlling.
Which function of management compares performance with standards?Answer: The management function which helps in finding out that the actual production of a worker is less than the set target is known as controlling. Here, comparing actual performance with standards or appraisal of performance is the step involved in the process of controlling.
What is a process of checking actual performance against standard performance?The control function can be viewed as a five-step process: (1) Establish standards, (2) Measure performance, (3) Compare actual performance with standards and identify any deviations, (4) Determine the reason for deviations, and (5) Take corrective action, if needed.
Is a function of comparing the actual performance with standard performance?THE CONTROLLING is the function of comparing the actual performance and pre-determined performance.
|