Page 381 - Business Principles and Management

Unit 4

14.3 The Controlling Function

Goals Terms
• List the three basic steps in the • quantity standard • variance
controlling function. • quality standard
• Identify and describe four types
of standards.

Understanding Controlling

“Employee absences have increased by 3 percent this year.”
“Maintenance costs are down an average of $150 per vehicle.”
“Salespeople in the southern district have increased new customer orders
by 12.3 percent in a three-year period.”
“An average of 16 additional employees per month are enrolling in the
company’s wellness program.”
“The adjustments to the welding robot’s computer program have reduced
the variations in the seam to 0.0004 mm.”
These statements provide very valuable information to managers. With the
proper information, managers can tell how well activities are being performed.
Reviewing performance is one part of the fourth management function—
controlling. Managers must be able to determine if performance meets expec-
tations. If problems are occurring, managers need problem-solving skills to
develop good solutions. In the last two lessons of this chapter, you will study
the controlling function of management.

MANAGEMENT AS A CONTINUOUS PROCESS
As you have learned, all managers perform four management functions. Planning
involves setting goals and directions for the business. Organizing deals with obtain-
ing and arranging resources so the goals can be met. Implementing is the responsi-
bility for carrying out the work of the organization. Controlling is determining
whether goals are being met and what actions to take if performance falls short of
the goals.
Although each of the functions includes a specific set of activities, they are
all related. Planning improves if there is an effective organization to provide
information to managers. Without effective planning, it is difficult to decide
how to organize a business and what resources are needed. Implementation is
impossible without plans and difficult with a poorly designed organization.
Controlling cannot be completed unless the company has specific goals and
plans. Figure 14-4 shows that management is a continuous process and that
each function supports the others. Controlling is the final function and pro-
vides the information needed to improve the management process and busi-
ness operations.

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