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Controlling in management is a cyclic process that involves comparing actual performance with the set standard of the company, to guarantee the effective accomplishment of organizational objectives.

Controlling is the last function of management in which activities such as Setting standards, ensuring implementation, genuine execution, and taking corrective actions in the event of deviations are all important for the managerial job of controlling function in management.

Here in this article, we have shared definitions of controlling, steps involved in the controlling process, features and characteristics of control, and the importance of controlling in management.

► What is Controlling in Management?

Controlling is one of the most basic functions of management such as planning, organizing, staffing, etc. Controlling is very essential in the management process because without controlling management can’t ensure the desired results.

Definition of Controlling in management

Controlling can be defined as a function of ensuring the actions of the employees and workers of an organization are directed towards the attainment of a common goal and objectives and the work is being performed as planned by the management.

“Controlling is the act of monitoring and correcting all activities in an organization to ensure they are being accomplished as planned.”

Definition of Controlling by renowned Authors

Controlling is the process of checking whether or not expected progress is being made towards the objectives and goals and acting if necessary, to correct any deviation.
– Theo Haimann

Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the organizational objectives and plans desired to obtain them as being accomplished. – Koontz & O‟Donell

Meaning of Controlling in management

Controlling means guaranteeing that exercises in an organization are proceeded according to the plans. Controlling likewise guarantees that an organization’s assets are being utilized viably and effectively for the achievement of wanted objectives.

Must Read :What is Management?

► Objectives or Benefits of Controlling

Objectives or Advantages and Benefits of Controlling in management are as follows;

• Identify the actual progress of the work in the company.
• It helps the R&D department to improve efficiency.
• It facilitates coordination in the organization.
• To measure the actual performance with the set standard.
• To calculate the actual quantity and quality of the product.
• To eliminate wastage of resources.
• To meet the deadline of the projects.

► Importance of Controlling in Management

• Controlling aides in accomplishing authoritative objectives
• Passing judgment on the exactness of guidelines
• Making efficient use of resources
• Improving employees’ motivation
• Ensuring order and discipline
• Facilitating Coordination in action

◉ Controlling aides in accomplishing authoritative objectives:

The controlling capacity tracks progress toward hierarchical destinations and banners any deviations so healing moves can be made.

◉ Passing judgment on the exactness of guidelines:

A successful control framework permits the executives to decide whether the principles set are precise or not by intently checking changes in the association’s current circumstances.

◉ Making efficient use of resources:

A director can lessen asset squandering by successfully using assets through the controlling system.

◉ Improving employees’ motivation:

A powerful control framework ensures that staff knows about how they are relied upon to treat well as the exhibition necessities. Thus, it rouses and helps them in conveying prevalent outcomes.

◉ Ensuring order and discipline:

By keeping a cautious eye on the exercises of its representatives, the controlling capacity creates an environment of request and discipline in the firm.

◉ Facilitating Coordination in action:

The last and most pivotal job of controlling is to guarantee that every office and representative is administered by foreordained norms and objectives that are surely known and facilitated. This ensures that the association’s general objectives are met in an ideal manner.

► Characteristics/Nature/Features Of Controlling

• Goal-Oriented
• Pervasive
• Continuous
• Controlling is the process of reviewing staff performance
• It is a forward-looking function
• It is subject to the preparation
• Action-oriented

◉ Goal-Oriented (controlling in management)

The fulfillment of characterized objectives or goals decides the accomplishment of any administration exertion.

◉ Pervasive (controlling in management)

Controlling is needed in a wide range of associations whether it is benefit making, non-benefit making, business or non-business, at all levels whether it is high-level administration or center-level administration, or lower-level administration.

◉ Continuous (controlling in management)

Continuous performance advancement is a constant, forward-looking way to deal with execution that organizations use to adjust and develop their kin while helping them in their prosperity.

◉ Controlling is the process of reviewing staff performance

By controlling capacity, the administration can keep a beware of the presentation, devotion, and trouble spots of the staff.

◉ It is a forward-looking function

Controlling is a forward-looking capacity, as it helps in concluding the future strategy in the event that the genuine exhibition doesn’t coordinate with the principles set.

◉ It is subject to the preparation

Controlling is reliant upon the arranging capacity, as the examination of real execution is made with the arranged exhibition. Consequently arranging goes about as a base for controlling.

◉ Action-oriented (controlling in management)

The focal point of the board is on achieving the work with the assistance of HR. It is the viable and productive coordination of every accessible asset. The activities in an association are completed by subordinates, or laborers, who work under the oversight of a supervisor.

► Limitations Of Controlling

Here are the disadvantages or limitations of controlling in management.

• Difficulty in setting quantitative standards
• Little control over external factors
• Resistance from employees
• Costly affair

◉ Difficulty in setting quantitative standards

When guidelines can’t be estimated, a control framework loses a portion of its viability.

◉ Little control on external factors

External components like government regulation, specialized headways, and rivalry, among others, are past the control of an organization.

◉ Resistance from employees

Employees, generally, detest being constrained by their supervisors and they detest being in steady cautiousness of the administration.

◉ Costly affair (controlling in management)

Control is a costly method since it requires a truckload of cash, time, and exertion as far as setting principles, estimating execution, and revising the deviations.

► Process of Controlling in Management

In an organization, the controlling process is an important function for the managers. It is an act of comparing actual performance with the organization’s guidelines to guarantee that activities are completed by the plans.

And in case, if there is a deviation in actual performance and the set standards then corrective action is taken by the management.

The steps involved in process of Controlling are as follows;

• Step 1:  Setting Performance Standards
• Step 2: Measurement Of Actual Performance
• Step 3:  Comparing Actual Performance with standards
• Step 4: Analyzing Deviation
• Step 5: Taking Corrective Action

Must Read :What is Planning in Management?

► Relationship between Planning and Controlling

Planning and controlling are intertwined and commonly supported as in:

• Planning is needed for powerful control. The standard for controlling is set by plans. Administrators have no impact on anything in the event that the norms aren’t characterized early.
• Without control, planning is useless. At the point when control is worked out, it is productive. It recognizes any deviations and makes a restorative move is vital.
• Controlling surveys the proficiency of arranging and helps in the execution of healing activities.
• Planning is forward-thinking, though controlling is in reverse reasoning. Arranging is a future-situated action since it involves thinking ahead and setting up strategies to boost asset use later on, which is the reason it is alluded to as a forward-looking capacity.
• In control, we look at the representatives’ past presentations and contrast them with the setup prerequisites. Assuming there are any disparities between genuine and expected execution or result, the controlling capacities guarantee that future real exhibition meets anticipated execution. Thus, controlling is a capacity that looks forward.
• Accordingly, arranging and controlling are interlaced, and they walk connected at the hip. Controlling climbs to a higher level on account of arranging, while arranging upgrades for future controlling.

Also Read :Steps in Planning Process

Techniques of controlling

Managerial control or techniques of controlling in management is divided into two classes.

1. Traditional techniques of controlling
2. Modern techniques of controlling

1. Traditional Techniques of controlling

• Personal observation
• Budgetary control
• Break-even analysis
• Costing
• Special reports analysis
• Statistical data

2. Modern Techniques of controlling

• Return on investment (ROI)
• Responsibility account
• Human resource account
• Performance budgeting
• Program evaluation and review technique (PERT)
• Critical path method
• Management info system (MIS)
• Zero-based budgeting
• Six Sigma
• Total Quality Management (TQM)
• Social audit
• Management audit

Also Read :Human Resource Planning (HRP)

Theory X and Theory Y were given by Douglas McGregor in the 1950s. It is based on human work motivation and management. Here we have shared complete detail for a better understanding of this Theory X and Theory Y of motivation.

► What are McGregor’s Theory X and Theory Y?

According to Douglas McGregor, the assumptions of Theory X and Theory Y are as follows;

◉ Theory X

According to Theory X, The assumption is that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform.

◉ Theory Y

According to Theory Y, The assumption is that employees like work, are creative, seek responsibility, and can exercise self-direction.

During the 1960s, social analyst Douglas McGregor created two differentiating speculations that clarified what supervisors’ convictions regarding what rouses their kin can mean for their administration style. He named those theories Theory X and Theory Y. These speculations keep on being significant even today.

Since our conduct will in general be reliable with our suppositions, endeavors to impact others frequently uncover a few signs, regularly unpretentious and not really observable or mindful, that those suspicions are. It’s essential to us that we challenge our suspicions much of the time.

Douglas McGregor communicated his perspectives on human instinct in two series of expectations. They are prevalently known as ‘Theory X’ and ‘Theory Y’.

Theory X represents the arrangement of conventional convictions held, while Theory-Y represents the arrangement of convictions in light of scientists in conduct science who are worried about present-day social perspectives on the man at work.

These two hypotheses address the outrageous scopes of presumptions. The administrative perspectives and administrative works on coming about because of such presumptions have a significant bearing on representatives’ conduct.

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► Difference between Theory X and Theory Y

Let’s discuss both aspects of this theory of work motivation known as Theory X and Theory Y of Douglas McGregor.

◉ Theory X Assumptions are negative

• Representatives innately detest work and, whenever the situation allows, will endeavor to stay away from it.
• Since’ representatives hate work, they should be forced, controlled, or compromised with discipline.
• Representatives will keep away from liabilities and look for formal courses whenever the situation allows.
• Most specialists place security over any remaining variables and will show little aspiration.

Supervisors who acknowledge Theory X suppositions will generally construct, control and intently regulate their representatives. These chiefs believe that outside control is fitting for managing questionable, flippant, and youthful individuals.

Drawing vigorously on Maslow’s order of requirements, McGregor inferred that Theory X suppositions about the idea of man are for the most part incorrect and the administration rehearses that created from these presumptions will frequently neglect to rouse people to pursue hierarchical objectives.

The executives by bearing and control may not prevail as it is a problematic approach to inspiring individuals whose physiological and wellbeing needs are sensibly fulfilled and whose social, regard and self-realization needs are becoming transcendent.

Given the downsides of Theory X, McGregor fostered an elective hypothesis of human conduct called Theory-Y.

◉ Theory Y Assumptions are positive

• Representatives can see fill-in as being pretty much as normal as rest or play.
• Individuals will practice self-bearing and poise assuming that they are focused on the targets.
• The normal individual can figure out how to acknowledge, even look for, obligation.
• The capacity to settle on creative choices is broadly scattered all through the populace.
• Supervisors who acknowledge Theory Y suppositions about the idea of man don’t endeavor to design, control or intently regulate the representatives.

All things considered, these chiefs assist their workers with developing by exposing them to continuously less outer control and permitting them to accept increasingly more poise.

Representatives determine the fulfillment of social, regard, and self-completion needs inside this sort of climate.

Accordingly, Theory Y focuses on the foundation of a climate wherein workers can best accomplish their own objectives by counseling, partaking, and conveying themselves to the goals of the association. In this cycle, workers are relied upon to practice a huge level of inward inspiration.

Theory X expects that lower-request needs to overwhelm people. Theory Y accepts that higher-request needs to overwhelm people. McGregor himself held to the conviction that Theory Y presumptions were more legitimate than Theory X.

There is no proof to affirm that either series of expectations is substantial. Either Theory X or Theory Y presumptions might be fitting in a specific circumstance.

► Application of Theory X & Theory Y of Work Motivation

Business Implications for Workforce Motivation Theory.

• Decentralization and Delegation: If firms decentralize control and lessen the number of levels of the board; directors will have more subordinates and thus will be compelled to appoint a few obligations and navigation.
• Work amplification: Broadening the extent of a worker’s work mixes it up and chances to fulfill self-image needs.
• Participative administration: Consulting representatives in the choices making process taps their imaginative limit and gives them some command over their workplace.
• Execution examinations: Having the worker set targets and take part during the time spent assessing how well they were met.

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Theory X-based societies will neglect to hold the best ability for the basic truth that information laborers can’t endure frameworks in light of order and control, micromanagement, and an administration style of the last century.

Therefore, HR should empower, along with everybody in an organization, another gander at individuals and their connections, taking on suppositions that are more suitable to the second and this new labor force.

HR endeavors should take on refreshed types of remuneration and motivating forces, adopt a more concerted strategy for the climate and for worker satisfaction, and plan cautiously each reason behind the representative’s excursion, including crucial points in time like agreement end.

The hierarchical culture is everybody’s liability, except HR should be the extraordinary driver and watchman of this new professional workplace’s qualities, standards, and suspicions that really focus on individuals.

Herzberg’s Two Factor Theory consists of various motivators and hygiene factors but all these factors are divided into two groups, hence is called the two-factor theory of motivation. Here we have shared the Two Factor Theory of Motivation given by Herzberg in detail.

► Herzberg’s Two Factor Theory of Motivation

Frederick Herzberg is an American psychologist who proposed the Two Factor Theory, also known as Motivator-Hygiene theory in 1959. He also introduced the concept of Job Enrichment in business management.

◉ Meaning, Definition of Herzberg’s Two Factor Theory

According to Herzberg’s Two Factor Theory, there is some work that considers that outcome satisfaction while there are other work factors that lead to dissatisfaction.

Traditional View in Work Motivation

• Opposite of satisfaction is dis-satisfaction

Herzberg’s View in Work Motivation

• Satisfaction – No satisfaction (Motivation Factors)
• Dissatisfaction – No dis-satisfaction (Hygiene Factors)

As indicated by Herzberg, the opposite to “Satisfaction” is “No Satisfaction” and opposite or contrary to “Dissatisfaction” is “No Dissatisfaction”.

◉ Explanation of Herzberg’s Two Factor Theory

Herzberg two factor theory is basically divided into two classes.

1. Motivation Factors (When increased lead to greater satisfaction)
2. Hygiene Factors (When deficient, lead to greater dissatisfaction)

Herzberg et. al. (1959) contends that Motivation factors are important to further develop work Satisfaction. These Motivation, as indicated by Herzberg, are natural for the gig and lead to work Satisfaction since they fulfill needs for development and self-realization (Herzberg, 1966).

Herzberg published a paper named “One More Time, How Do You Motivate Employees?” in 1968. This paper had sold 1.2 million reprints by 1987 and that time it was the most requested article from the Harvard Business Review.

In his unique paper, Herzberg inspects 14 Motivation and Hygiene factors, of which these are remarkable models.

► 1. Motivation Factors – Herzberg’s Two Factor Theory

• Opportunity for the advancement of promotion
• The work itself
• Potential for personal growth
• Responsibility
• Achievement
• Recognition

Must Read :McGregor’s Theory X and Theory Y

◉ Opportunity for the Advancement of promotion

Herzberg characterized promotion as the vertical and positive status or position of somebody in a working environment. In the interim, a negative or nonpartisan status at work addresses negative promotion.

◉ The work itself

The substance of occupation assignments in itself can have positive or adverse consequences on representatives. The work’s trouble and level of commitment can drastically affect Satisfaction or disappointment in the work environment.

◉ Possibility & Potential for personal growth

Potential for development exist along these lines as Maslow’s self-completion; they are open doors for an individual to encounter self-improvement and advancement in the work environment. Self-improvement can bring about proficient development, expanded chances to foster new abilities and strategies, and acquire proficient information.

◉ Responsibility

Responsibility includes both the obligations held by the individual and the power allowed to the person in their job. Individuals gain Satisfaction from being given the obligation and power to decide. On the other hand, a bungle among liability and level of power contrarily influences work Satisfaction.

◉ Achievement

When representatives get commendation or awards for arriving at objectives at their particular employment or for creating excellent work, they get acknowledgment. Negative acknowledgment includes reactions or fault for an inadequately taken care of business.

◉ Recognition and Accomplishment

Positive accomplishment can include, for instance, getting done with a troublesome responsibility on schedule, taking care of a task-related issue, or seeing positive outcomes from one’s work. Negative accomplishment incorporates inability to gain ground at work or helpless occupation-related independent direction.

► 2. Hygiene Factors – Herzberg two factor theory

• Interpersonal relationships with peers, managers, and subordinates.
• Salary
• Company policy, administration, and procedures
• Technical Supervision
• Working conditions
• Status
• Security

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Hygiene factors are those that reduce work disappointment. Herzberg, Mausner, and Snyderman involved the term Hygiene regarding “clinical Hygiene… [which] works to eliminate wellbeing perils from the climate”.

Herzberg likewise expresses that Hygiene factors are outward to the gig, and capacity in “the need to stay away from repulsiveness” (Herzberg, 1966).

Hygiene factors, rather than connecting with the substance of the gig in itself, will generally connect with relevant factors like relational relations, compensation, organization approaches and organization, relationship with bosses, and working circumstances:

◉ Interpersonal relations

Interpersonal connections include the individual and working connections between a representative and his managers, subordinates, and friends.

This can appear in, for instance, work-related connections as well as friendly conversations in both the workplace and during casual break times.

◉ Salary

Salary incorporates compensation or pays increments, and adversely, unfulfilled assumptions for pay or pay builds.

◉ Company Policies and organization

Company approaches and organization incorporate factors, for example, the degree to which organization association and the executive’s strategies and rules are clear or muddled.

For instance, an absence of the delegation of power, unclear approaches, methodology, and correspondence might prompt work disappointment.

◉ Supervision in Management

Supervision includes a worker’s decisions of the ability or ineptitude and decency or injustice of the manager or oversights.

For instance, this could incorporate a boss’ readiness to designate liability or to each, as well as their insight into the current task. Helpless administration and executives can diminish work disappointment.

◉ Working Conditions

Finally, working conditions include the actual environmental elements of the gig and whether or not they are great or poor. Factors leading to a decent or helpless work area could include how much work, space, ventilation, apparatuses, temperature, and security.

◉ Status

Each employee should get their status well defined and all the subordinates within the organization should be familiar and retained.

◉ Job Security

The company must provide job security to their employees so they can feel secure for their careers and future.

Must Read :Steps in Planning Process

► Advantages of Herzberg’s Two Factor Theory

1. It is a judicious way to deal with Motivation. It helps in understanding the impact of occupation content on the Motivation of workers.
2. It recognizes the elements that spur representatives at work and the variables that keep up with workers at work.
3. It suggests explicit measures (for example Motivation) to further develop Motivation levels.
4. It clarifies the meaning of occupation advancement at work upgrade and Motivation.

► Limitations of Herzberg’s Two Factor Theory

1. The two-factor theory neglects situational elements.

2. Herzberg explained a connection between Satisfaction and Productivity. In any case, the examination led by Herzberg focused upon Satisfaction and disregarded efficiency.

3. This theory’s unwavering quality is questionable. The investigation must be made by the raters. The raters might ruin the discoveries by examining the same reaction variously.

4. No exhaustive proportion of Satisfaction was utilized. A representative might secure his position satisfactory regardless of the way that he might abhor/object to an aspect of his responsibilities.

5. The two-element theory isn’t liberated from predisposition as it depends on the normal response of representatives when they have enquired about the wellsprings of Satisfaction and disappointment at work.

They will pin disappointment on the outer factors, for example, pay structure, organization strategies, and friendly relationships. Likewise, the representatives will give credit to themselves for the Satisfaction factor at work.

6. The theory disregards common laborers. Regardless of these limits, Herzberg’s Two-Factor theory is acceptable extensively.