It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.
7.Reporting – that is keeping those to whom the executive is responsible informed as to what is going on, which thus includes keeping himself and his subordinates informed through records, research and inspections. This can include external reporting, too, meaning that a Public Information department reports operational information to the public.
8.Budgeting –All that goes with budgeting in the form of fiscal planning, accounting and control. Finance departments conduct the fiduciary activities.
(Reporting and budgeting needs no separate discussion here as Management Function’s as, Reporting is covered by the controlling functions and Budgeting is a part of planning.)
Functions of a Budget Document
- Traditional Model
Management: using the budget document to manage organizations and personnel. This function is focused on performance and efficiency. This function is most commonly associated with performance budgets.
Planning: using the budget document as a plan to achieve some goal. The focus of this function is on the outcome and effectiveness of a program. This function is most commonly associated with program and PPBS (Program Planning Budgeting System) budgets.
- Modern Model
Steering: as a response to the traditional management function, the steering function serves as a guide for managing.
Strategic Brokering: uses the budget document as a means of constantly looking for possible directions and reacting to the environment.