Four Steps of Controlling Process
- 1. Four Steps of Controlling Process The four-step process of control helps you to ensure that appropriate goals are set, evaluated and modified when there is a discrepancy. The control process helps to set clear goals and expectations for the company and its employees. The Four-steps are; Establishing Performance Standards, Measuring the Actual Performance, Comparing Actual Performance to the Standards, and Taking Corrective Action. To give you a better understanding of these steps, let's take a look at how each of these steps is being explained. Setting Performance Standards. The first step in the process of controlling is concerned with setting performance standards. These standards are the basis for measuring the actual performance. According to the shared article of Kalpana (2016), these standards can be expressed both in quantitative and qualitative terms.The examples of quantitative terms are; Revenue to be earned, Units to be produced and sold, Cost to be incurred, Time to be spent in performing a task, Amount of inventories to be maintained etc. In addition by Banerjee (2012), some of these standards are; Time standards, the goal will be set on the basis of time lapse in performing a task.Cost standards,these indicate the financial expenditures involved per unit, (e.g. material cost per unit, cost per person, etc.). Income standards, these relate to financial rewards received due to a particular activity like sales volume per month, year etc.Market share, this relates to the share of the company's product in the market. I learned that, it Guides the Managers in Achieving Pre-determined Goals. Measurement of Actual Performance. Measuring performance is a vital part of monitoring an organization’s progress. It comprises measuring the actual performance outcomes or results of an organization against its intended goals. This requires a top-
- 2. down approach to setting performance criteria rather than a bottom-up approach that often see occurring in many organizations (Stanleigh., 2016). According to Clear View page (2015), Improve individual performance by Carrying out a dedicated survey of a selection of employees and managers on their views and experiences of the performance management process and tools and how they have contributed to achieving the desired goals,Asking specific questions relating to performance management in your existing employee attitude surveys, Conducting interviews with a sample of employees and managers about their experiences of performance management. I learned that you can improve anyones performance by Start evaluating, to truly know how effective your performance management is, and to understand how to improve it. Compare Actual Performance to the Standard. According to Barnatthe (2014), the comparing step determines the degree of variation between actual performance and standard. If the first two phases have been done well, the third phase of the controlling process - comparing performance with standards - should be straightforward. However, sometimes it is difficult to make the required comparisons (e.g., behavioral standards).Some deviations from the standard may be justified because of changes in environmental conditions, or other reasons. Andersen said, Performance may be higher than, lower than or identical to the standard. The timetable for comparing performance to standards depends on a variety of factors Annual comparisons may be appropriate for longer-run and higher-level standards. Daily comparisons may be necessary for items such as a severe cash shortage, etc. I learned that after the two steps from above
- 3. there’s a need to compare the two steps, because risks in management are needed an attention. Take corrective Action. When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them. In the article shared by Venkatesh (2016), in the productivity and quality‐centered environment, workers and managers are often empowered to evaluate their own work. After the evaluator determines the cause or causes of deviation, he or she can take the fourth step—corrective action. The most effective course may be prescribed by policies or may be best left up to employees' judgment and initiative. From the Popular Website “Human Resources” (2012), All employees are expected to meet performance and attendance standards and behave appropriately in the workplace. Corrective action is a process of communicating with the employee to improve attendance, unacceptable behavior or performance. You may take corrective action when other methods such as coaching and performance management have not been successful. In cases of serious misconduct, you may choose to proceed straight to disciplinary action. I learned that as a manager it would be better to have a disciplinary action for every misconduct in the organization to be able to achieve everyone’s goal. I conclude that, setting performance Standards, are the benchmarks towards which efforts of entire organization are directed. Measurement of Actual Performance, are not only the measuring the performance but also the business productivity by reducing costs. And all of the steps are very important to have effective and efficient managers.
- 4. References; “Human Resources” (2012). Managers and Supervisors. Reteived form; http://www.hr.ucsb.edu/managers-supervisors/performance- management/corrective-action Banerjee.A., (2012). 4 Main Steps in Control Process in Management. Retrieved from; http://www.preservearticles.com/2012051932638/4-main-steps-in-control- process-in-management.html Clear Review “How to measure the effectiveness of performance management”. Retrieved from; https://clearreview.com/how-to-measure-performance- management/ Kalpana . R., (2016).Controlling Process in Business Management. Retrieved from; http://www.businessmanagementideas.com/management/controlling-process-in- business-management-5-steps/2403 Stanleigh.M., (2016).Measuring Your Organization’s Performance. Retrieved from; https://bia.ca/measuring-your-organizations-performance/ Venkatesh, (2016). Steps Involved in Control Process. Retrieved from; http://www.yourarticlelibrary.com/management/controlling/steps-involved-in-control- process/53348/