Question 4 OR (a)
Controlling and the principles of an effective control system
9 marks
- Time to write
- About 18 minutes
- Notes
- Crux notes
Question
Question 4 OR (a) · 9 marksWhat is controlling? Discuss the main principles on which an effective control system rests.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- What…?Discuss…Two asks in one question: answer both.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Meaning and process of controlling 2 marks 3 min
- 2 Principles of an effective control system 6 marks 11 min
- 3 Example and conclusion 1 mark 2 min
- Check: every ask answered, key terms underlined 1 min
Easy marks
- Step 1 opens with the meaning: a one-line definition, the quickest mark in it.
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks. End with step 3 in a line or two.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Controlling is the managerial function of measuring actual performance, comparing it with planned standards, and taking corrective action to ensure that the organisation's objectives are achieved. It closes the management cycle: planning sets the targets and controlling checks whether they are being met. Its process runs from setting standards and measuring performance to comparing the two, finding the causes of any significant gap, and correcting it. Control is pervasive (every manager controls), continuous, forward-looking (it guides future action) and closely linked with planning.
1The standard goes on the wall: 98 parcels in 100 delivered within two days.
Deciding the yardstickA courier company sets a standard of 98 per cent of parcels delivered within two days.
2The weekly report brings the branch in at 90—she reads it twice.
Finding out what actually happenedWeekly reports show a branch at 90 per cent.
3She walks the yard and finds the why: two vans with their bonnets up.
Asking whyAnalysis shows two delivery vans out of service.
4Hired vans roll in, routes are redrawn, and the branch climbs back to standard.
Putting it rightThe manager hires temporary vans and reschedules routes, and the branch returns to standard.
Principles of an effective control system
- Acceptance and self-control. Controls work best when people accept them as fair and are encouraged to control their own work.
- Action orientation. A report that shows a shortfall and leads to no change has cost money for nothing; the test of a control system is whether someone fixes what it finds, whether by changing the plan, the people or the way they are led.
- Timeliness. Deviations should be detected early, ideally before they occur (feedforward control), so that corrective action is possible in time.
- Economy. The benefits of a control must exceed its cost.
- Flexibility. A control should still give useful signals when the plan behind it changes: a budget that adjusts its expense allowance to the sales actually achieved stays meaningful when a forecast proves wrong.
- Simplicity. Those who use and are subject to controls must understand them.
- Traceable responsibility. Each deviation should be traceable to the person responsible, so control should follow the lines of the organisation structure.
- Exception at key points. It is neither possible nor necessary to control everything; attention goes to key result areas, and only significant deviations go up.
- Objectivity. Standards and measurements should be objective and verifiable rather than based on personal opinion.
- Fit with plans and positions. Controls must reflect the plans they secure and suit each activity and manager: a small shop and a steel plant need different controls.
- Accountability for performance. Measures of control should lead to fair evaluation and rewards linked to results.
Example. A hospital chooses a few strategic points, patient waiting time, infection rate, bed occupancy and cost per patient day, sets standards for each, receives a daily dashboard that highlights only exceptions, and acts promptly when a ward's infection rate rises.
An effective control system is tied to plans, focused on critical points, timely, objective, economical, flexible and followed by action. Such a system keeps the organisation on course without stifling initiative.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Meaning and process of controlling | 2 |
| 2 | Principles of an effective control system | 6 |
| 3 | Example and conclusion | 1 |
| Total | 9 |
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