Controlling
Controlling allows a manager to measure how closely an organization
is adhering to its set goals. It is also a process that provides feedback
for future planning.
1. Setting performance standards. A company needs to set the
standards by which performance will be measured. In a sales
organization it may be sales growth or quarterly sales figures.
Perhaps the manager will set the dollar amount for sales that
are to be made that quarter.
2. Measuring performance. Using the previous example, measuring
performance for sales will require tallying up the number
of sales made during the quarter.
3. Comparing actual performance to the set performance standards.
Now the difference between the set performance sales and the
dollar amount of actual sales made during the quarter must
be determined.
4. Taking the necessary corrective action steps. If the sales were
much below the set level, it is important to analyze what went
wrong and try to correct it.
5. Using information from the process to set future performance
standards.