Controlling is very important aspect but there is a proper way and procedure to control so the process of controlling is discussed below:

1. Establishing standards to measure performance

  • This involves making decisions about the goals an organization wants to focus on during a period of time.
  • These can be financial, customer satisfaction, production or employee performance-related goals.

2. Measuring actual performance 

  • This involves creating measuring tools to collect data. The tool should be able to report on performance as it relates to the standards set, or ‘measures,’ developed in the first step of the controlling process.
  • These tools can be a balance sheet, a sales report, data collected from a customer satisfaction survey or even an employee performance appraisal.

3. Comparing performance with the standard

  • This involves comparing ‘actual’ performance to performance standards based on data collected in the second step of the controlling process.

4. Analysing deviation

  • Using the measuring tools created above, managers are able to compare current performance and productivity to the standards set,  by which deviations are analysed including the reasons of their occurrence.

5. Taking corrective action 

  • This involves determining whether changes need to be made, what changes need to be made and devising a plan for making changes.
  • Managers will use comparisons to determine what needs to be investigated.

Need any help?

If you require any business related help or other guidance than read our business blog on

Or contact us on: +919587406557 (India)