Process of Controlling
1. Establishment of Standards Establishing Standard is the first step in control and standards are the criteria against which the actual results can be measured. They are derived from the objectives and goals of the organisation. Standards may be fixed for individuals, groups or for whole organisation . It may be expressed quantitatively or qualitatively depending on the type of activity to be measured.
2. Measuring actuals The Second step is to measure the actual performance of individuals, groups or organisation. The work done is recorded at every stage and measured with the Standards. Comparison of actual performance is made with standards.
3. Deriving deviations While comparing the actual with standard we can find out deviations. Corrections in deviation should be made. Thus it would be useful for attainment of the goal.
4. Take Corrective action Managers can correct deviations by modifying their goals . The reason for the deviations should be identified and appropriate corrective action should be taken to rectify the deviations. The corrective actions are generally taken by top management.