Controlling

Definition

Controlling is a management function that involves monitoring and evaluating the performance of an organization to ensure that it meets its goals and objectives. It includes setting performance standards, measuring actual performance, and taking corrective actions when necessary. This function helps managers assess the effectiveness of their strategies and operations within an organizational structure, allowing for adjustments that enhance efficiency and productivity.

5 Must Know Facts For Your Next Test

1. Controlling ensures that the organization is on track to meet its goals by continuously comparing actual performance against established standards.
2. Effective controlling relies on accurate data collection and analysis, allowing managers to make informed decisions.
3. The controlling function can help identify inefficiencies within the organizational structure, leading to improvements in processes and resource allocation.
4. Different types of controls include feedforward (preventive), concurrent (real-time), and feedback (post-performance) controls, each serving a unique purpose in the management process.
5. In hospitality and tourism, controlling is crucial for maintaining service quality and customer satisfaction, as it allows managers to respond quickly to any service discrepancies.

Review Questions

• How does controlling function support decision-making within an organization?
  • Controlling functions provide crucial feedback that informs decision-making by allowing managers to compare actual performance against established benchmarks. When managers have accurate performance data, they can identify areas needing improvement and make informed choices about resource allocation, operational changes, or strategic shifts. This ensures that the organization stays aligned with its goals and can respond effectively to any challenges.
• Discuss the relationship between controlling and performance measurement in managing an organization.
  • Controlling is inherently linked to performance measurement because it relies on specific metrics to evaluate how well an organization is achieving its objectives. By establishing clear performance standards, managers can measure actual outcomes against these benchmarks. This relationship is vital as it enables organizations to identify discrepancies, analyze the reasons behind them, and implement corrective actions to enhance overall effectiveness.
• Evaluate the impact of effective controlling on operational success in the hospitality industry.
  • Effective controlling plays a significant role in operational success within the hospitality industry by ensuring that service quality and customer satisfaction are consistently maintained. By utilizing various control mechanisms, such as real-time feedback from customers and staff performance evaluations, managers can quickly address issues before they escalate. This proactive approach not only helps improve operational efficiency but also enhances guest experiences, which is essential for fostering loyalty and positive reviews in a competitive market.

Related terms

Performance Measurement: The process of evaluating an organization's efficiency and effectiveness in achieving its goals through specific metrics.

Corrective Action: Steps taken to rectify deviations from expected performance, ensuring that objectives are met in a timely manner.

Benchmarking: A method of comparing an organization's performance metrics to industry standards or best practices to identify areas for improvement.