Term Paper on Control

Here is a term paper on ‘Control’ for class 11 and 12. Find paragraphs, long and short term papers on ‘Control’ especially written for school and college students.

Term Paper Contents:

Term Paper on the Meaning and Definition of Control
Term Paper on the Characteristics of Control
Term Paper on the Kinds of Control
Term Paper on the Steps in Control or Elements of Control
Term Paper on the Principles of a Good Control System
Term Paper on the Relationship between Planning and Control
Term Paper on the Significance of Control
Term Paper on the Limitations of Control

Term Paper # 1. Meaning and Definition of Control:

The core of the managerial process is achieving the organisational objectives. The essence of effective functioning is to make use of limited physical and material resources and meeting other constraints over which the management has no control. The control function is to see whether the functioning of the organisation is in accordance with the desired plan or not, and to see where the fault lies and how it is to be corrected.

Managerial control has two implications, namely motivational and corrective. The first aspect is related to leadership function of management. It is the duty of the leadership to see that performance is in tune with predetermined plan. No variation from the planned course is to occur without sufficient reasons. The managers at various levels must be motivated in such a way so that performance is in the desired direction.

So the leadership function involves control and may take several forms based on the requirements of the situation. So the process of influencing the behaviour of other people itself is a control process. Further in control process steps should be taken to correct deviation whenever possible. There should be integration of motivational and corrective controls on the basis of prompt and proper feedback of information.

Control is seeing that everything is going on according to plans. It is a process that guides performance towards predetermined goals. In management it is a process of analyzing whether actual performance is according to planned performance and if not where the deviations are and when to take corrective actions to make performance conforms to plans. This process ensures that performance produces the desired results or not. It is a comparison and verification process.

Control function of management involves guiding and regulating operations towards pre-determined goals. Managers should have a clear understanding of the concept of control for effective and efficient exercise of this function. A clear understanding of control is indispensable for an effective manager.

Earnest Dale is of the opinion that the concept of control envisages a system that not only provides a historical record of what has happened to the business as a whole but also pinpoints the reasons why it has happened. It facilitates the chief executive to take corrective steps if he finds he is on the wrong track.

Koontz and o’Donnell have defined controlling as “The measurement of accomplishment against the standards and the correction of deviations to assure attainment of objectives according to plans.”

So it is a continuous process of measuring actual performance with predetermined performance and minimising the gap between the two.

E.F.L. Breach has defined control as, “Control is the process of checking actual performance against the agreed standards or plans with a view to ensure adequate progress and satisfactory performance.”

So he is of the opinion that control involves two important aspects:

(i) It consists of those activities which are necessary to ensure that performance takes place in accordance with the targets laid down by the management.

(ii) It also involves taking corrective actions in case the performance is not satisfactory.

So the control function of management involves the following:

(1) Establishment of standards.

(2) Measurement of actual performance.

(3) Comparison of performance with standards.

(4) Focusing on deviations.

(5) Taking corrective action.

It is a continuous process. It is the duty of the management to watch operations continuously and to check it as and when it takes a wrong path. The main object of control is to expose variations from standards and take steps to prevent them in future.

Term Paper # 2. Characteristics of Control:

The features of control are:

(a) Pervasive function

(b) Reviews past events

(d) Action oriented

(e) Continuous process

(f) Dynamic process

(g) Involves measurement

(h) It is universal

(i) Linked with other functions of management.

(a) Pervasive Function:

It is a function of every manager who is performing other managerial functions. It is in fact a follow-up action of other functions of management. This is performed by managers at all levels of management.

(b) Reviews Past Events:

Control involves appraisal of past activities. So control looks back by looking back it gives the feedback information in knowing about the reasons for poor performance. This will facilitate the manager to initiate corrective actions.

(c) Forward Looking:

Control is always forward looking as it is always linked with future. A manager cannot control the past. He can take corrective action only in regard to future operations. Control is usually preventive in nature as it minimises wastage and deviation from standards.

(d) Action-Oriented:

One of the steps in control is to take corrective measures. Action is the essence of control. The purpose of control is achieved only when corrective action is taken on the basis of feedback information. Control is aimless if timely corrective action is not taken. It is this corrective action that adjusts the performance to pre-determined standards. A good system of control facilitates timely action so that there is minimum waste of time and energy.

(e) Continuous Process:

It is a continuous and non-stop process. The manager is to watch continuously the performance and to see that it is going towards the desired end and if not actions are taken to correct them. It is not an end process. It does not stop anywhere. Every manager has to perform this function continuously along with other functions.

(f) Dynamic Process:

Control is a dynamic process.

It is flexible and not rigid due to two reasons:

(1) Control involves continuous review of standards of performance and results in corrective action which may lead to change in the performance of other functions of management.

(2) Further management is concerned with managing a business entity which keeps on changing. So managerial control is dynamic. Management cannot be successful if its approach is not dynamic.

(g) Involves Measurement:

Measurement and evaluation is the core of control. The management is to keep watch on performance and its correlation with standards. On this basis it suggests future course of action. It helps to steer events towards targets. So constant measurement and evaluation is the essence of control.

(h) It is Universal:

The process of control consists of the same elements irrespective of the organisation or the functions to be controlled. It is equally important to both business and non-business organisations and managers for regulating performance of activity.

(i) Linked with Other Functions of Management:

Control is connected with other functions of management. Planning provides the framework for evaluation of performance. They are interlinked. Organising deals with creating a design for the structure and control is to monitor and evaluate the performance of the structure.

In case performance is affected by faulty organisational design suitable corrective action is to be taken. Staffing deals with recruitment to retirement and each employee is assigned a specific job in the organisation. The manager is to rate the performance of employees and to coach them to improve their performance potential wherever it is needed.

In directing the manager is to lead, communicate and motivate employees to perform in accordance with objectives. By control function of management the managerial performance is put to test and it is to be improved or changed based on standards required. So control is linked with all other functions of management.

Term Paper # 3. Kinds of Control:

Every organisation in the present day makes use of three kinds of control system known as:

(a) Feedback Control

(b) Concurrent Control

They are discussed in detail below.

(a) Feedback Control:

Other names Historical or Post action control. This measures results from a completed action. The causes of deviations from standards are determined and corrective steps are taken so that such deviations do not occur again. In any good managerial system controls itself by information feedback which discloses errors in achieving goals and initiates corrective action.

The term feedback refers to the process of adjusting future action based on information about past performance. Though it is of post-mortem in nature it is still vital to the control process. This is a continuous activity as it enables to take corrective action which is essential for accomplishment of goals of the organisation.

In every organisation management needs continuous flow of information about actual performance so that deviations are promptly corrected. Information received by the management is nothing but feedback. Formal feedback involves all written information about actual performance, reports, financial statements etc.

Informal feedback is obtained through personal observations, personal contacts and informal discussion. There always exists a time-lag between recording deviations and taking corrective actions when sophisticated system of information collection is used. The collected information needs to be analysed properly before suggesting any corrective action.

(b) Concurrent Control:

Other names ‘Real time control’ or ‘Steering Control’. This provides for taking corrective action or making adjustments while programme is still in operation and before any major damage is done. This can be compared to that of navigator in a ship or driver of car. This type of control occurs while an activity is taking place.

(c) Feed-Forward Control:

This involves evaluation of inputs and taking corrective measures before a particular sequence of operation is completed. It is based on the timely and accurate information about changes in the environment. This is based on the simple principle that an organisation is not stronger than its weakest link. It is the duty of the management to monitor critical inputs into any system. Preventive maintenance is an example of feed-forward control.

This type of control will be successful provided the following points are present:

(a) Through planning and analysis must be done.

(b) Careful discrimination must be applied in selecting input variables.

(d) The feed-forward control system must be dynamic.

(e) Corrective action must be taken as suggested by feed-forward control.

Term Paper # 4. Steps in Control or Elements of Control:

The essential elements of control are:

(a) Establishing standards

(b) Evaluation of performance

(d) Correction of deviation.

(a) Establishing Standards:

This is the first step in control. The object of establishing standards is to evaluate performance. To establish standards it is necessary to identify clearly and precisely the results which are desired. Otherwise the purpose of control may be defeated. The standards may be quantitative or qualitative ones.

Quantitative standards are set in physical or monetary terms like volume of production, man-hour costs, revenue, investment etc. Qualitative standards are to be set for those areas where standards cannot be set in terms of quantitative standards. Example, goodwill, employee morale, motivation, industrial relations.

To make the standards effective they must have the following features:

(a) Standards should be set in quantitative terms to the maximum possible extent.

(b) They should be capable of achievement with reasonable amount of cost, effort and time.

(d) Standards should be flexible. The standards should have acceptable range of deviations and should be capable of being modified whenever required.

(e) Standards should be set up in consultation with the concerned employees who are responsible for achievement.

(f) Standards should be accurate and objective. They should be developed on some scientific basis.

(g) They should be revised periodically to keep them update.

(h) Objectives should be consistent with overall organisational objectives.

(b) Evaluation of Performance:

This is the second step in control. Here actual performance is to be measured and compared with standards set. For this necessary information about the operation should be collected. Quantitative measurement is to be done for cases where quantitative standards are set.

This will make evaluation simple and easy. For other cases performance may be measured in some intangible terms. For measuring qualitative performance techniques like personal observation, sample checking can be made use of. For reporting about performance the organisation is to develop a sound management information system for timely and accurate measurement of performance.

(c) Comparison of Performance with Standards:

Next step in control is to compare actual performance with standards. The comparison will reveal the extent of deviation and will help the management in identifying the possible courses of such deviations. Comparison is easy when standards are set in quantitative terms. In other cases, intangible results may be obtained and they may be used to find out the extent of deviation.

Achieving of standards may not happen in all cases and extent of variations may differ from case to case. In comparing performance the management has to decide whether strict compliance is necessary or there may be a permissible limit of variation. There cannot be no uniform practice of determining variation as it varies from activity to activity.

There is no necessity for reporting all deviations to the management. Deviations beyond a reasonable limit should be brought to the notice of the management. This is known as control by exception.

Where the degree of deviation is beyond the prescribed limit then a proper analysis should be made to identify the causes of deviations. This is done to know whether the causes are controllable or not. If they are controllable necessary corrective action may be taken up. If the cause of deviation is not controllable then no corrective action can be taken.

The report about performance, comparison, deviation should be brought to the notice of the manager who is responsible immediately and to other related managers connected with planning. This will enable them to take suitable and timely remedial measures. This will also help them to give advice about the activity under control when approached.

(d) Correction of Deviation:

The last step in control process is the action taken to correct deviations so that they may not occur again. Further it facilitates easy achievement of organisational objectives.

The corrective action may take any one of the following forms:

(a) Revision of standards if they seem to be unattainable.

(b) Change in the assignment of tasks.

(d) Change in direction techniques.

(e) Change in organisation structure provision of new facilities.

In taking corrective measures the manager is to consider the following:

(a) Taking corrective action when no action is required.

(b) Not taking action when action is required.

So to make the control function more effective the manager is to take right action at the right time.

Term Paper # 5. Principles of a Good Control System:

An effective control system should have the following prerequisites:

(a) Emphasis on Objectives:

Every organisation has to achieve certain objectives. Control is to see that the organisation achieve the objectives or not. Control is to be designed to suit the needs of the organisation. The control techniques are to be tailored to reflect accurately the performance of every segment of the organisation.

(b) Fixing of Responsibility:

The responsibility for the exercise of control should rest with the manager charged with the implementation of plans.

(c) Prompt Reporting:

An ideal control system should be such that it may detect deviations promptly and may report to the management concerned immediately to facilitate them to take necessary action. Timeliness is the essence of control. It reduces the cost and inconvenience. It needs good appraisal and information system.

(d) Forward Looking:

An effective control should be futuristic in approach. It should be directed towards future. It has to provide an aid to planning. It identifies situations where new plans are needed and it provides certain data on which future planning depends.

(e) Flexibility:

A good control system must be responsive to changing conditions in the business world. It should be capable of adapting to new developments including the failure of the control system. The control system should be workable in the case of changed plans and unforeseen circumstances. Flexibility in control can be obtained by preparing alternative plans for probable situations.

(f) Direct Control:

The control system should be designed to maintain direct contact between the manager and subordinate. The boss at the first level is important because he has direct knowledge of performance.

(g) Control by Exception:

This is also known as ‘Management by exception’. Though it is the duty of the immediate boss to focus on deviations irrespective of its nature not all deviations are reported to the higher ups, only deviations of exceptional nature are reported. This is done with the object of making control effective and timely action taken by the higher ups. The control system should be designed in such a manner that only significant deviations from them are reported to the higher level.

(h) Self-Control:

In every organisation there are number of units and sub units. Each unit may be developed to control themselves. If the units can develop an effective control system for themselves then it is easy for the management to integrate it with the overall control of the organisation.

(i) Strategic Point Control:

In exception principle it was suggested that matters of exceptional deviations are to be referred to the higher ups for effective and immediate disposal. It is also important in those deviations to distinguish between strategic deviations and insignificant deviations. So to make control effective a manager is look for exceptions at critical points.

(j) Corrective Action:

The manager should not only concentrate on deviations but also take timely corrective action to check deviations to minimise loss. The manager is to be trained in spotting deviations and taking suitable remedial measures.

(k) Economical:

Control system followed by the organisation should be economical and worth its costs. Economy is relative, since the benefits vary with the importance of activity. The points to be considered for economy are the size of the operation, expenses that might be incurred in the absence of control system and contributions made by the control system are to be considered. Control should be economical to the size of the enterprise. Savings anticipated from control should be greater than the expected costs on the working.

(l) Motivating:

A good control system should be employee centred rather than work centred. It should pay due attention on human factor. It should be designed in such way to secure positive reaction from employees. In case of large deviations the employees responsible for it are to be guided and directed properly instead of reprimanding them.

The object of control is to minimise the occurrence of deviations and not to punish until necessary. Self-control tends to be motivating. Direct contact between the controller and the controlled is also helpful in making the control system motivational.

The principles of control makes us to infer that planning is the basis of control, action is its essence, delegation is the key and information is its guide. Planning has special relationship with control. Planning refers to the visualisation of an organisation’s future over a specified period of time and the required course of action to enable the firm to reach a particular position.

This is the first stage of the management process over which the subsequent stages are developed. Planning is the basis for control process which is concerned with ensuring that performance conform to the standards laid down in advance.

According to Robert Anthony, “Management control is a process carried on within the guidelines established by planning. The process is intended to make possible the achievement of planned objectives effectively and efficiently.”

Control mechanism becomes useless if it is not supported by corrective actions in case of deviations. So action is the essence of control. Top management cannot perform all the functions. They have to delegate their powers to the lower levels and ask them to report only exceptional matters to the top management.

Thus, delegation is a key to effective controlling. The accuracy of feedback information is a guide to controlling. Control mechanism should provide for timely information to the management. So there must be a provision for feedback in any good system of controlling.

Term Paper # 6. Relationship between Planning and Control:

Planning and control are two important management functions which are closely inter-related. Planning is the basis of control. Control implies existence of certain standards against which actual performance may be evaluated and planning provides such standards. Planning decides what is to be done, where and by whom. What are the actions to be taken to achieve them. Control presupposes the existence of standards with which actual performance is to be compared.

To bring out the relationship between planning and control where there is no plan there is no basis for control. Planning sets the course of actions and directs the behaviour and activities in the organisation.

Control is to monitor performance and measures the behaviour and activities in the organisation. It suggests measures to remove deviations. Planning is the primary function of management and it initiates the process of management but control completes the process as it is the last function of management.

Planning without control is meaningless and control without planning is blind. Because a manager does not know where to go and he cannot judge whether he is going on the right track or not. A good plan will not bring any concrete result if the management is lacking in controlling.

Planning identifies the goals and determines the ways of achieving them. The relationship between planning and controlling has aptly described by H.G. Hicks in the following quotation “Planning is a clearly a pre requisite for controlling. It is utterly foolish to think that controlling could be accomplished without planning. Without planning there is no pre-determined understanding of desired performance”.

For control, planning is necessary. Planning without control is merely a pipe dream or wishful thinking. Without adequate control best plans may go astray. It ensures the achievement of pre-determined standards.

The analysis of deviations locates the errors and tries to remove them by taking corrective action which may involve setting new goals formulating new plans, changing the organisation structure, improving staffing and making major changes in the directing techniques and leading them.

The information collected during the process of control provides a useful basis for future planning. Thus control makes planning a meaningful exercise and planning provides the guideline for control. That is why the authorities say that planning looks ahead and control looks back.

Term Paper # 7. Significance of Control:

Controlling is an important function of management. All other managerial functions are only preparatory steps for getting the work done and controlling is concerned with making sure that there is proper execution of these functions. It is an indicator regarding the economical use of available resources and efficient achievement of organisational objectives. A good control system provides information to the manager which is very much useful for taking various decisions.

The merits of an effective control system are:

(a) In the present day set up the size of business organisation is quite large. A huge amount of capital is invested and many people are employed. The problem of control is getting complicated as there are different units for production and distribution. To coordinate their activities an efficient system of control is necessary.

(b) For any future action an efficient system of control is necessary. Taking corrective action may result in modification of plans, organising and direction. Control will also check the mistakes being not repeated in future.

(c) Control is basic to decision making. The process of control is complete when the management takes corrective action. This forces the organisation to take the effective follow up action which will facilitate the organisation in accomplishing organisational objectives. So proper and effective decision making is needed for corrective and follow up actions.

(d) Better planning is ensured by effective control. Because it identifies deviations and proper corrective action can be taken to achieve organisational objectives. So control facilities proper and better planning.

(e) Every business organisation when it grows in size, to facilitate easy functioning is to decentralise. Decentralisation results in dispersal of decision making in the organisation. Management is to maintain effective control for successful functioning of decentralisation. So control facilitates proper and sound decentralisation.

(f) Supervision made effective by control as it focuses on deviations. It keeps employees under check and it enforces discipline among them. A good control system detects the weak points very quickly. This facilitates effective supervision at all stages.

So control covers all aspects of management namely planning, decision making, decentralisation, supervision and coordination.

Term Paper # 8. Limitations of Control:

Control faces the following limitations:

(1) Control can effectively deal with internal factors. It cannot control external factors like government policies, technological changes, social changes, changes in fashion etc.

(2) Control is an expensive process because lot of time is taken to observe the performance of subordinates. This involves lot of expenditure, time and effort.

(3) Control becomes less effective when standards cannot be quantified in cases like human behaviour and employee morale.

(4) Control techniques are to be accepted by the subordinates. They may resist control if they feel that control may reduce their freedom. Further when the accountability cannot be fixed on the subordinates it may loose its significance.

To make control effective the manager is to take the following steps:

(a) Every manager should be conscious of the need of control.

(b) Well defined performance standards are to be established.

(d) Standards are to be established in consultation with employees. They have to understand it properly.

Control by Exception:

Other name Management by Exception. This is an important principle of organisational control. According to this principle only significant deviations from standards of performance should be brought to the management attention. If actual performance is in tune with standards no follow-up is necessary. But if there is a major deviation from the standard it should be reported to the manager.

This principle has been devised to conserve managerial time effort and talent are applied in more important areas. So the lower level management is to separate important information from unimportant information. Only information of critical nature is sent to the higher ups. This facilitates the installing of an effective control system.

This principle is in tune with an old saying that an attempt control everything may end up in controlling nothing. Any executive who wants to control everything in the organisation will prove to be ineffective. But he must be allowed to concentrate more on critical problems which involve significant deviations in performance. This will ensure better control in the organisation and facilitate effective delegation of authority.

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Term Paper on Control | Functions | Management