What are the Principles of the Controlling?

Principles of the Controlling are :-
1. Goals

a. The establishment of the measurable goals acts as a prerequisite to the controlling.
b. For the implementation of the program, it is very necessary to have a conceptual document and this document is referred to as the planning.
c. From here, the process of the planning goes through the conceptual to the measurable objectives.
d. At times these can also be qualitative in the nature and in such cases it becomes very necessary to convert these into the measurable terms.

2. Establishment of the standards

a. The measurable goals that are created have to be converted into the standards.
b. In case of the measurable goals, the measure of weighing the results is fixed.
c. But in case of the standard, one expects for a minimum performance depending on the given efforts and the time.
d. During this step, the measures of the efforts, the time, and the cost are fixed in the nature.
e. The performance can be judged by setting the minimum standards.

3. Nature of the controls

a. The controls must be economical in the nature not only in the implementation but also in correcting the deviation by getting a signal on time.
b. The control costs in terms of the implementation.
c. The evaluation of the control in a tangible as well as the intangible form, depends greatly on the judgment of the management.

4. Selection criteria of the critical points

a. It is very necessary to keep the costs of the control down, so hence it is not at all possible to have a control over each stage in the process.
b. For this purpose, it is very important to select certain control points.
c. The selection largely depends on the individual testing skills, group output, its criticality to the operation in the total activity etc.
d. The raw materials that cannot be reworked and returned must be selected as the critical point for the control.
e. The selected critical points can be changed on a rotational basis and also by changing after the feedback that is obtained from the results of the process.

5. Feed back system

a. The feedback should be very efficient and meaningful in the nature.
b. It is very essential that the control points are very well supported by the control systems as these points at any stage can be feed forward as well as backward.
c. With the help of the Feedback system, one can make a decision over the fact that whether the cost of the continuity in the operations in the similar manner would be good in the customer’s interest or not.
d. This system helps in the determination of the fact that whether any type of the rework or correction is required or not.

6. Discipline and Flexibility

a. Both the Discipline and the Flexibility are very much required in the process of the controlling and for this, the presence of the control system is very essential.
b. Discipline can be achieved, if it is assured that the same process will be carried on during the existence.
c. In case of any type of the changes or the deviations in the design of the product etc, then it is not at all possible to continue with the same set of the control points.
d. Discipline can be maintained only if the various activities involved remain totally unchanged.
e. But sometimes such circumstances, like the results that are obtained at a particular point do not meet the requirements expected of such a control, arise and then it becomes very necessary for the control system to possess the flexibility.
f. One very important point to be kept in mind here is that the changes that are brought in the control systems should be brought in, depending on the demands of the business.
g. As the environment present around the organization and that present within the organization keep on changing continuously, so it is very important that the control systems possess the flexibility.

7. Development of the controls

a. The controls should be tailored in such a way that the whole organization should be able to read the feedback reports.
b. The results of the control should be communicable and also actionable in the nature.
c. Any type of the difference in the output should be brought out by the various controls as with this, the deviations can be easily pointed out without doing much work.

8. Corrections

a. With the help of the controls, one can find out the deviations in the planned performance.
b. If the control is ideally placed, its organization and the management can act in the self interest of the business.
c. It is very necessary to direct the controls towards the corrections and then suitable corrective actions should be taken.