Steps of Controlling:
(i) Analysing Deviations: The deviations from the standards are assessed to identify the acceptable range of deviations. The study of such deviations also implies that business have prescribed processes and pre-determined tolerance limits across all activities in a business and variations from such limits should be controlled.
1. Critical Point Control: Control should focus on Key Result Areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points.
2. Management by exception: Management by exception is also known as control by exception that focuses on identifying and handling cases that devices from the standards or norms. According to this principle, there are possibilities of certain situations that deviate from normal business processes, which need to be cared, for usually through human intervention.
(ii) Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within the acceptable limits. But where significant deviations occur corrective action is necessary. These corrective actions attempt to save on valuable time, energy and other resources by focussing attention on high-priority areas.