CONTROLLING

By Ayushman Tamrakar

The Control Process is a three step process of measuring actual performance, comparing actual performance against a standard, and taking managerial actions to correct deviations or to address inadequate standards.

Control Process

Organizational Performance

Performance Indicators Performance: -concert, athlete in a race

or air hostess loading passengers Performance – end result of an activity The accumulated results of all work Multi faceted concept but need to

understand factors No mediocre performance – high level

performance

Measures for Organizational Performance

Industry and Company Rankings

Organizational Effectiveness

Organizationa

l Productivity

Organizational Productivity

Productivity Produce most goods and services using

the least input Management wants to increase the ratio

of output to input

Organizational Effectiveness

Measurement of appropriateness of organizational goals and how well goals are being met

Bottom line for managers Guides managerial decisions

Industry and Company Rankings

Popular way to measure organizational performance

Rankings are determined by specific performance measures – different for each list

E.g. Fortune Good indicator of how well a company is

performing in comparison to others