Controlling in Management: Ensuring Performance Meets Standards

Every organization sets goals. But setting goals alone is not enough – what matters is whether those goals are actually being achieved. That’s where controlling comes in. As one of the four core functions of management (alongside planning, organizing, and leading), controlling is the mechanism that keeps an organization on track. It measures actual performance against planned objectives and triggers corrective action when things go off course. Without it, even the best-laid plans can fall apart.

What is controlling in management? 🔗

Controlling is a systematic process of monitoring organizational activities to ensure they align with established plans and objectives. It acts as a feedback loop: managers set benchmarks, track progress, identify deviations, and take corrective steps. According to the MIT Sloan Management Review, after strategies are set and plans are made, management’s primary task is to ensure those plans are carried out – or modified if conditions demand it.

In simple terms, controlling answers the question: Are we doing what we said we would do, and are we doing it well enough?

It’s worth noting that controlling isn’t about micromanaging employees. It’s about creating a structure where performance can be observed, evaluated, and improved at every level – from senior leadership to frontline teams.

Why is controlling important? 🔗

Without the controlling function, organizations operate blindly. Here’s why it matters:

Ensures goal achievement: Controlling keeps activities aligned with organizational objectives. Managers can identify when things are drifting off course and intervene before small problems become major setbacks.

Improves resource utilization: By monitoring how resources are being used, controlling helps organizations reduce waste, improve product quality, and increase efficiency. If a department is overspending or underperforming, the control process flags it early.

Facilitates decision-making: The data generated through the controlling process – performance reports, variance analyses, compliance audits – gives managers the information they need to make informed, evidence-based decisions.

Reduces errors and risk: Early detection of deviations means errors get corrected before they compound. This is especially critical in high-stakes environments like healthcare, manufacturing, and environmental management.

Connects back to planning: Controlling and planning are deeply interlinked. As the Management Study Guide explains, planning without controlling is meaningless, and controlling without planning has no foundation. The two functions depend on each other to be effective.

Steps in the control process 🔗

The control process follows a logical, repeatable sequence. While some frameworks describe it in three steps and others in five, the core stages remain consistent. Let’s walk through each one.

Step 1: Establishing performance standards 🔗

The first step is to define what success looks like. Performance standards are the benchmarks or targets against which actual results will be measured. These standards are derived directly from the organization’s plans and objectives.

Standards can be tangible (measurable in numbers) or intangible (qualitative in nature). Tangible standards include metrics like revenue targets, production output, cost limits, and time deadlines. Intangible standards cover things like employee morale, customer satisfaction, and managerial effectiveness – these are harder to quantify but equally important.

Good standards share a few characteristics: they are clear, realistic, and measurable. A vague standard like “improve sales” isn’t useful. A specific one like “increase quarterly sales revenue by 12% compared to the previous quarter” gives managers something concrete to track.

Step 2: Measuring actual performance 🔗

Once standards are in place, the next step is to measure what is actually happening on the ground. This involves collecting data on performance through reports, observations, audits, financial statements, and other monitoring tools.

Measurement should be ongoing, not just a one-time event. According to Fort Hays State University’s management textbook, monitoring progress is one of the fundamental elements of the control function. For long-term goals, interim checkpoints (monthly or quarterly reviews, for example) help ensure that the organization stays on track throughout the process, not just at the end.

The method of measurement depends on what’s being tracked. Financial performance might be measured through accounting reports; production efficiency through output logs; and employee performance through appraisals and KPIs.

Step 3: Comparing performance against standards 🔗

This step involves placing actual results side by side with the pre-set standards and identifying any deviations – the gaps between what was planned and what was achieved.

Not all deviations require action. Managers need to distinguish between minor variances and significant ones. As the Management Study Guide notes on the controlling process, if stationery expenses increase by a small percentage, that’s a minor deviation. But if monthly production drops consistently, that’s a major deviation that demands attention.

This is sometimes called management by exception – managers focus their energy on the deviations that are critical and likely to impact organizational goals, rather than trying to control every small fluctuation.

Step 4: Analyzing deviations 🔗

Once a significant gap is found, managers need to dig into why it occurred. Was it a problem with resources? Was the original standard unrealistic? Did external conditions change? Was there a failure in execution?

Root cause analysis at this stage is crucial. Without understanding the “why” behind a deviation, any corrective action will be superficial and unlikely to solve the underlying problem.

Step 5: Taking corrective action 🔗

The final – and most important – step is to act on the findings. Corrective action can take several forms depending on the nature and cause of the deviation:

Adjusting operations: Revising processes, reallocating resources, or providing additional training to employees to bring performance back in line with standards.

Revising standards: If the analysis reveals that the original standards were unrealistic or outdated, the standards themselves may need to be modified. This isn’t a sign of failure – it’s a sign of adaptive management.

Reinforcing positive performance: Corrective action isn’t only about fixing problems. When performance exceeds standards, managers can recognize and reward that success to sustain motivation. A manager who notices a team exceeding targets, for instance, might celebrate the achievement to keep morale high.

Types of control 🔗

The timing of when control is exercised matters. Management literature recognizes three main types of control, each serving a different purpose.

Feed-forward (preventive) control 🔗

This type of control takes place before an activity begins. It aims to anticipate potential problems and prevent them rather than reacting after the fact. Examples include pre-flight safety checklists for pilots, quality inspections of raw materials before production, and employee training programs before a new system launch.

Concurrent control 🔗

Concurrent control happens during the activity. Managers observe operations in real time and make adjustments on the spot. A factory supervisor monitoring an assembly line and stopping it when a defect is spotted is practicing concurrent control. This type works best in situations where immediate correction can prevent costly errors.

Feedback control 🔗

Feedback control occurs after the activity is completed. Performance is reviewed, and lessons learned are applied to future activities. Annual performance reviews, post-project evaluations, and financial audits all fall into this category. While feedback control cannot change what has already happened, it’s invaluable for improving future processes.

Controlling and continuous improvement 🔗

Controlling is not a one-and-done exercise. It’s inherently cyclical and ongoing. Each round of measuring, comparing, and correcting feeds into the next planning cycle, creating a loop of continuous improvement.

This idea is central to the Plan-Do-Check-Act (PDCA) cycle, developed by W. Edwards Deming. The PDCA model – sometimes called the Deming Cycle – provides a structured framework where organizations plan an improvement, implement it, check the results, and then act on what they’ve learned. It’s a cornerstone of quality management systems worldwide, including ISO 14001, the international standard for environmental management systems.

The Japanese concept of Kaizen, meaning “change for the better,” takes this further. Kaizen emphasizes that small, incremental improvements – made consistently by employees at all levels – accumulate into significant organizational gains over time. As the Lean Way explains, Kaizen succeeds when all employees actively look for areas to improve and offer suggestions based on their observations and experience.

Toyota is perhaps the most famous example. The Toyota Production System combined Deming’s statistical quality control with Kaizen principles to create a manufacturing approach that became the global benchmark for efficiency and quality. Workers on the factory floor were empowered to halt the production line whenever they spotted a defect – a form of concurrent control driven by a culture of continuous improvement.

Controlling in environmental management 🔗

The controlling function is especially relevant in the field of environmental management, where organizations must meet regulatory standards, track environmental impacts, and demonstrate ongoing improvement.

An Environmental Management System (EMS) is a structured framework that mirrors the control process. According to ISO, an EMS helps organizations plan, implement, monitor, and continuously improve their environmental performance. The components – setting environmental policy, planning targets, implementing controls, evaluating performance, and conducting management reviews – directly parallel the steps of the managerial control process.

For instance, a manufacturing company might set a standard of reducing carbon emissions by 15% over three years. The controlling process would involve regularly measuring emissions data, comparing it against the target, investigating why certain facilities aren’t meeting the benchmark, and implementing corrective actions like upgrading equipment or changing energy sources.

The PDCA cycle is embedded in ISO 14001, the most widely adopted EMS standard globally, with over 500,000 certifications across more than 180 countries. Organizations certified under ISO 14001 commit to a cycle of setting environmental objectives, implementing operational controls, monitoring performance, and driving continual improvement – all hallmarks of effective managerial control.

Challenges in the controlling process 🔗

While controlling is essential, it’s not without challenges.

Difficulty in setting qualitative standards: Not everything can be easily measured. Employee attitudes, leadership effectiveness, and organizational culture are critical to performance but resist precise quantification.

Resistance from employees: People sometimes perceive control systems as restrictive or punitive. If employees feel they are being micromanaged, it can hurt morale and productivity rather than improving it. The key is striking a balance – enough oversight to ensure accountability, but enough autonomy to foster engagement and creativity.

Cost of implementation: Setting up robust monitoring and control systems requires investment in tools, technology, and personnel. For small organizations, this can be a significant burden.

Dynamic external environments: Rapid changes in markets, regulations, or technology can make existing standards obsolete quickly. Managers must remain flexible, regularly reviewing and updating their control systems to reflect current realities.

Making controlling work effectively 🔗

For the controlling function to add real value, a few principles should guide its implementation:

Align controls with objectives: Control mechanisms should directly connect to what the organization is trying to achieve. Controls that don’t serve a clear purpose waste time and resources.

Be timely: Information needs to reach decision-makers quickly enough for corrective action to matter. Delayed feedback reduces the effectiveness of the entire process.

Focus on critical points: Managers can’t control everything. Strategic control focuses on the few areas where deviations would have the most significant impact – these are the critical control points.

Foster a positive control culture: When employees see controlling as a tool for improvement rather than punishment, they’re far more likely to engage with it. Transparency, communication, and involving people in the process all help build this culture.

What do you think? How do you see the balance between maintaining control and giving teams enough freedom to innovate? In your experience – whether in a workplace, an environmental initiative, or even personal goal-setting – has the process of measuring progress and making corrections actually led to better outcomes?

References

1. https://sloanreview.mit.edu/article/the-control-function-of-management/
2. https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/the-control-process/
3. https://www.managementstudyguide.com/controlling_function.htm
4. https://fhsu.pressbooks.pub/management/chapter/controlling/
5. https://www.managementstudyguide.com/controlling_process.htm
6. https://www.iso.org/standard/60857.html
7. https://theleanway.net/what-is-continuous-improvement
8. https://en.wikipedia.org/wiki/Kaizen
9. https://www.iso.org/climate-change/environmental-management-system-ems