Controlling is a crucial action in a management. Observation, doing a comparison and correcting the work process are included in controlling process (Robbins & Coulter,2014). According to Fayol’s basic management theory (as cited in Schraeder, Self, Jordan & Portis, 2014) consists of four parts which are planning, organizing, leading and controlling. Planning can be organized. Goals and activities can be done as planned but the activities are not assured can be attained without controlling. Manager controlling action is an important step to measure all the actions and activities done are being met the goals or not. If the action is not moving towards achieving the company goals then correction action will be arranged. Thousands of airline food packs are produced every single day and each of the food packs undergoes hygiene control. Imagine what happens if the food making process does not follow the standard and is not give a focusing control? Controlling is an ongoing process to make sure everything is done under control. The steps in controlling are setting performance standard, measurement of actual performance, comparing actual performance standard, analysing deviation and taking a corrective action (Kalpana, 2014) (refer to Figure 1 in Appendix 1).
Firstly, the controlling process starts with setting performance standards. This standard will work as the guideline for the whole organization. In order to achieve a particular goal, the company need to have a clear idea of their mission to achieve (Axelsson & Svensson, 1994). These standards can be conveyed in the quantitative and qualitative standard. The Quantitative standard is related to the goal that can be measured by the quantity of the items. These standards include the total amount of income and profit gains by the company monthly or annually, how many units of items to be produced by the manufacture and to be sold to customers and also the number of inventories needs to be maintained. Meanwhile, qualitative standard aims the quality of somethings. These standards include to improve the employee’s motivation level and team work, broaden company relationship between the organization and their employees, improvising company’s product quality and enhancing company services for customer satisfaction (Kalpana, 2014).A Company set their goal in quantitative standard so it is become easier to do a comparison between standard performance and actual performance to improve their performance. Company with a qualitative standard goal is hard to do comparison due to they do not have fix number to compare. In order to measure qualitative standard, the data collected is recorded in an understandable way. For example, an airline company can measure their company performance by comparing the actual number of delayed flight with the standard number of delayed flight for that month. Hence, the company use the previous data to set a new performance standard for the company.
The second step of controlling processes is the measurement of the actual performance. To determine the actual performance, the managers will measure the output from the worker’s behaviour or they can observe it by themselves. Based on Irwin (2000), he concluded that it is harder to measure the performance when it is not a routine task. It is because when the worker did not comfortable to complete the tasks, it is often to be several problems that lead to low performance. There are four types of measuring the actual performance of the workers which is the personal observations, verbal reports, statistical reports and written reports (Robbins & Coulter, 2012). As for personal observation, the managers will observe their workers directly without any limited coverage of work activities but usually distracted with personal biases. For statistical reports, it is very easy for the managers to visualize the workers’ performance by pie chart or line graph but still, it will provide limited information. This is because the statistical report focuses on the final resulting output, not the exact whole achievement. Next, for the oral and written reports, it is the faster way to get information from the workers and it is more comprehensive respectively. It is important for the manager to find what to be measure than how to measure the workers’ performances.
Next, the third step of controlling process is comparing the actual performance with standards. The performance standard is usually in the example of monetary forms such as revenue, cost or profit, and it can be defined as how much the units produced or the qualification of customer services. It is important to compare with the standard to make sure that the output will achieve the targets and goals and to ensure the increasing of the data performance, but it is still hard to distinguish a reasonable average of variation (Robbins & Coulter, 2012). Thus, the managers should build a very well-organized of the control process so that the actual performance comparison towards standards quickly turns to possible. Moreover, some differences between actual performance and from the standard achievement may be altered by environmental factors and so on (Telen, 2016). If these deviations are minimum, it can be neglect but if it turns to maximum, then drastically action should be taken from the managers itself. There are several courses of action for the mangers can be taken in order to improve the achievement which is correct the problems to get back on the track or uses the basic way which looks at how and why the performance between the actual and the standards is different (Clive, 2016).
The forth step in controlling process is analysis deviation. Analysis deviation divided into two which are critical point control and management by exception. In the critical point control stage, the organization needs to recheck every activity to ensure they focus on Key Result Areas (KRAs). The KRAs are very important for the organization because it captures the work role in the organization. KRAs help the individual to prioritize their activities and improve the time management. If there is something wrong happen at this point it will give big impact to the organization. For management by exception, the only important deviation that surpass the set limit notice to the management. This step gives many advantages, it results in saving time and effort. This is because managers will deal with important deviation only. Besides, it helps to focus on the important deviation that required more time and attention to make sure the organization on track. The routine problems can be managed by subordinates while the unusual problems that need more attention will settle down by the manager, by doing this employee motivation will increase because there is teamwork. The main causes of a problem can be detected through the identifying the deviation. The causes can be structural drawbacks, environmental factors, and others. The exact causes must be recognized to correct the problems (Kaplana, 2014). Hence, analysis deviation is important in controlling to detect causes of a problem.
The final step is taking corrective action. Taking corrective action is one of the managerial decision in controlling. This step divided into two which are correct the actual performance or revise the standard. Depending on the problem the manager could take the different corrective actions. For example, the performance variation is the main problem, the manager could correct it by giving disciplinary action or training program. The manager must decide the immediate corrective action, which corrects the problems on the dot to keep the organization on track or basic corrective action, which find out how and why the problems occur. Basic corrective action somehow will put more time on finding the issues, that the reason analysis deviation is the important step before taking corrective action because it will save time by choosing the immediate corrective action. Furthermore, the manager should revise the standard because sometimes the standard can be unrealistic, it either too high or too low for the goal. In that situation, the standard need the corrective action. If the goals can be achieved easily, the manager can raise the goal to improve the organization. On the other hand, if the goal never been achieved, the manager should downward the goals. The point is, the goal must be realistic. If the goal is achievable, the manager needs to make the team to improve their work by taking action to achieve the goal (Robbins, 2012). So, taking corrective action is important if the goal fails to achieve and not realistic.