CONTROLLING
Controlling Process in Supervisor
Controlling Methods
Type 1: Non-Quantitative Methods of Control: (Quality)
Non-quantitative methods of control are those which are used by managers in performing other managerial functions, viz., planning, organising, staffing and leading (directing). In general, these lead to control of overall performance of an organisation. Most of these techniques are directed towards controlling employees' attitudes and performance.
For controlling overall organisational performance, the following techniques are frequently and widely used:
1. Observation,
2. Periodic or 'spot' inspections,
3. Oral and written reports,
4. Performance evaluations, and
5. Discussion between the manager and employees involved in performing an activity.
The general purpose of these measures is to supervise or lead the work force.
A few other management systems and methods that are used for control purposes include management by objectives (MBO), management by exception (MBE), and management information systems (MIS).
Type 2: Quantitative Control Techniques: (Quantity)
These techniques are based on specific data and quantitative methods to measure and correct the quantity and quality of output.
1. Budgets such as:
(i) The regular operating, capital expenditure, sales and cash budgets; and
(ii) Specialized budgets such as planning-programming-budgeting systems (PPBS), zero-base budgeting (ZBB), and human resource accounting (HRA).
2. Control Centres.
3. Audits such as:
(i) Internal audits,
(ii) External audits, and
(ii) Management audits.
4. Ratio analysis (RA).
5. Break-even (BE) analysis.
6. Time-preference charts and techniques such as:
(i) The Gantt chart,
(i) Programme Evaluation and Review Technique (PERT) and
(iii) The Critical Path Method (CPM).
Type 3: Using Budgets and Budgetary Control: (Cost)
The primary financial control for every organisation is the budget. The budget is the most widely used technique of control in both business and government. A budget is both a plan and a control inasmuch as the preparation of budgets is an integral part of the planning process and the budget itself is the end point of the planning process, that is, the statement of plans.
In fact, some managers even refer to their budgetary controls as profit plans.
A budget is an estimate of income or expenses for a specific time period (say, a year, a quarter, or a month); and the particular estimates it contains become the standards against which future performances will be measured and evaluated.
If revenues (income) drop, expenditures should probably be curtailed. On the contrary, if actual expenditures exceed the expected figures, either additional revenue must be generated or expenditures have to be reduced.
Budgets usually require input from those whose activities will be funded and they, in turn, will control the budgets. Grassroots budgeting asks each manager to project his(her) unit's need for funds in specific categories -- such as wages, salaries, supplies etc. As these projections move up the management hierarchy they are consolidated and become the budgets for even larger units within the organisation.
These budgets are representative of an organisation's comprehensive budgeting programme.
Capital expenditures budget programme has two broad components as shown below:
Operating budgets include expense and revenue budgets for an entire organisation or any of its parts for a fixed period of time.
Financial budgets are represented by the cash and capital expenditure budgets, which furnish detail about two things:
1. Where the organisation intends to spend its money, and
2. Where this money will come from.
Essentials of Effective Controlling by Supervisor
1. Suitable: The control system should be appropriate to the nature and needs of the activity.
2. Timely and forward looking: The feedback system should be as short and quick as possible.
3. Objective and Comprehensive: Objective controls specify the expected results in clear and definite terms. The meaning of the central data should be clear to the manager who should use it.
4. Flexible: It should be flexible so that it can be adjusted to suit the needs of any change in the basic nature of the inputs and varieties.
5. Economical: The benefit obtained from a control system should be more than the cost involved in implementing it.
6. Acceptable to Organization members: The system should be acceptable to organization members.
7. Periodically reviewed: The control system should be periodically reviewed and evaluated.
Worker's Resistance to Managerial Control
1. Failure to accept objectives: A worker may not care to reduce waste if he thinks that this is going to make any difference to his employer who is very rich.
2. Unreasonable standards: A person may dislike control because he thinks the standard of performance set for him is too high
3. Too many controls: Too many controls irritate workers.
4. Incomplete measurements: People dislike controls because they believe that the measurement of their performance is incomplete.
5. Disclosure of unpleasant facts: Employees do not like controls because they fear exposure of their weaknesses before supervisor, subordinates and colleagues.
Control Techniques
1. Past oriented
2. Future oriented
3. Market control
4. Bureaucratic control
5. Clan control
6. Old control
7. New control
1. Past oriented control techniques:
● These are post action controls.
● They measure the results after the work is completed eg. Inspection of jobs
2. Future oriented control techniques:
● Also known as feed forward controls.
● They measure results before the work is completed.eg. Funds flow analysis
3. Market control techniques: Here control is established by doing comparison of prices and profits of previous years or of other organizations. e.g. prices of products.
4. Bureaucratic control techniques: These are controls by governments rules.
5. Clan control techniques: Establish control by generating trust, tradition and shared belief.
6. Old control techniques: These are financial and accounting based directed towards the control of money.
7. New control techniques: They provide the kind of information that are not readily available old techniques.
Scope for Control by Supervisor
Supervisor has scope to control in following areas:
1. Control over short term policies.
2. Control over department.
3. Control over workers
4. Control over production.
5. Control over cost of production.
6. Control over cycle time.
7. Control over material.
8. Control over machines
9. Control over equipments and tools.
10. Overall control.
Types of Supervisory Control
1. Standardizing control:● Performance is standardized.
● Use of time and work study.
2. Persevering control:
● Responsibilities are allocated.
● Strict supervision is done to control usages of assets.
3. Delegation of authority control:
● Policy manual is decided.
● Internal audits are done.
4. Measurement control:
● Job performance is measured.
● Measurement is done through special reports, budgets etc.
5. Motivating control:
● Control by motivation
● Motivation by promotions, rewards etc.
Advantages of Control by Supervisor
1. Control by supervisor makes necessary adjustments in operations.
2. The management can verify the policy through the control process.
3. Control flows throughout the organization from top to bottom.Supervisor has control over the subordinates. Also the supervisor should not misuse the authority.
4. There is psychological pressure to get better performance through the control process.
5. Control creates an atmosphere of discipline in the department.
6. Supervisor co-ordinate the activities of his subordinates with the help of control.
7. Control by supervisor ensures progress in efficiency.
Limitations of Control by Supervisor
1. Supervisor can not fix standards in all the cases. If quantitative standards are not fixed, then performance can not be measured accurately.
2. External factors like Government policies, market trends etc can not be controlled by supervisor.
3. If supervisor tries to keep control on the subordinates, then the freedom of them is lost. So there is difficulty in applying responsibility if workers are not willing to accept controls on them.
4. A small organization can not afford expensive method of controlling.
Summary
Supervisor executes his function by directing and controlling. These functions come after planning function. Directions are needed so to make smooth functioning of on shop floor. Instructions must be clear and specific. Instructions follow rules and achieve goals. There should be harmony of objectives in giving directions. Face to face instructions and written instructions are important as per the situation. Methods to give instructions are force, paternalism, bargain and harmony of objectives. Direction starts action and flow from top to bottom.
Supervisor has scope to control department, production, material, manpower etc. Control by supervisor makes necessary adjustments in operations. Essentials of effective controlling are suitability, timely and forward looking, objective comprehensive, and flexible. Past oriented, future oriented, market control, clan control, old and new control are the techniques of controlling by supervisor. Supervisor must understand the team and should link between various departments. Setting performance standards, measurement of actual performance, comparing actual performance with standards and taking corrective action is the procedure of controlling.
