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Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired future on some scale. As such, it is a fundamental property of intelligent behaviour. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans, that is, it combines forecasting of developments with the prepararation of scenarios of how to react to them. The term is also used to describe the formal procedures used in such an endeavor, such as the creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the objectives to be met, and the strategy to be followed. Beyond this, planning has a different meaning depending on the political or economic context in which it is used. Organizing is the act of rearranging elements following one or more rules. Main Entry:

Controlling is directly related to planning. The controlling process ensures that plans are being implemented properly. In the functions of management cycle - planning, organizing, directing, and controlling - planning moves forward into all the other functions, and controlling reaches back. Controlling is the final link in the functional chain of management activities and brings the functions of management cycle full circle. Control is the process through which standards for performance of people and processes are set, communicated, and applied. Effective control systems use mechanisms to monitor activities and take corrective action, if necessary. The supervisor observes what happens and compares that with what was supposed to happen. He or she must correct below-standard conditions and bring results up to expectations. Effective control systems allow supervisors to know how well implementation is going. Control facilitates delegating activities to employees. Since supervisors are ultimately held accountable for their employees' performance, timely feedback on employee activity is necessary. Control Process. The control process is a continuous flow between measuring, comparing and action. There are four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action. Step 1. Establish Performance Standards. Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard. What is expected? How much deviation can be tolerated? Time controls relate to deadlines and time constraints. Material controls relate to inventory and material-yield controls. Equipment controls are built into the machinery, imposed on the operator to protect the equipment or the process. Cost controls help ensure cost standards are met. Employee performance controls focus on actions and behaviors of individuals and groups of employees. Examples include absences, tardiness, accidents, quality and quantity of work. Budgets control cost or expense related standards. They identify quantity of materials used and units to be produced. Financial controls facilitate achieving the organization's profit motive. One method of financial controls is budgets. Budgets allocate resources to important activities and provide supervisors with quantitative standards against which to compare resource consumption. They become control tools by pointing out deviations between the standard and actual consumption. Operations control methods assess how efficiently and effectively an organization's transformation processes create goods and services. Methods of transformation controls include Total Quality Management (TQM) statistical process control and the inventory management control. Statistical process control is the use of statistical methods and procedures to determine whether production operations are being performed correctly, to detect any deviations, and to find and eliminate their causes. A control chart displays the results of measurements over time and provides a visual means of determining whether a specific process is staying within predefined limits. As long as the process variables fall within the acceptable range, the system is in control. Measurements outside the limits are unacceptable or out of control. Improvements in quality eliminate common causes of variation by adjusting the system or redesigning the system. Inventory is a large cost for many organizations. The appropriate amount to order and how often to order impact the firm's bottom line. The economic order quantity model (EOQ) is a mathematical model for deriving the optimal purchase quantity. The EOQ model seeks to minimize total carrying and ordering costs by balancing purchase costs, ordering costs, carrying costs and stockout costs. In order to compute the economic order quantity, the supervisor needs the following information: forecasted demand during a period, cost of placing the order, that value of the purchase price, and the carrying cost for maintaining the total inventory.

Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people. Supervisors have access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic or computer-driven control systems. Impersonal measurements can count, time, and record employee performance.

Step 3. Compare Measured Performance Against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem. Step 4. Take Corrective Action. The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient, however basic corrective action is the more effective. An example of the control process is a thermostat. Standard: The room thermostat is set at 68 degrees. Measurement: The temperature is measured. Corrective Action: If the room is too cold, the heat comes on. If the room is too hot, the heat goes off. Types of Control. Controls are most effective when they are applied at key places. Supervisors can implement controls before the process begins (feedforward), during the process (concurrent), or after it ceases (feedback). Feedforward controls focus on operations before they begin. Their goal is to prevent anticipated problems. An example of feedforward control is scheduled maintenance on automobiles and machinery. Regular maintenance feeds forward to prevent problems. Other examples include safety systems, training programs, and budgets. Concurrent controls apply to processes as they are happening. Concurrent controls enacted while work is being performed include any type of steering or guiding mechanism such as direct supervision, automated systems (such as computers programmed to inform the user when they have issued the wrong command), and organizational quality programs. Feedback controls focus on the results of operations. They guide future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made. Characteristics of Effective Controls. Control systems must be designed properly to be effective. When control standards are inflexible or unrealistic, employees cannot focus on the organization's goals. Control systems must prevent, not cause, the problems they were designed to detect. Performance variance can also be the result of an unrealistic standard. The natural response for employees whose performance falls short is to blame the standard or the supervisor. If the standard is appropriate, then it is up to the supervisor to stand his or her ground and take the necessary corrective action. An example of effective controls is the dashboard on a car. There are many things that can go wrong with a car. Only the most critical items to the car's operation are the focus on the dashboard (oil level, engine heat, fuel gauge, etc.). Variations in these items are most likely to inflict the most damage to the car. The critical items on the dashboard are easily understood and used by drivers. They point out a problem and specify a solution. They are accurate and timely. They call the driver's attention to variations in time to prevent serious damage. Yet, there is not so much information on the dashboard that the driver is overwhelmed.

Goals

Discussion

Review. An organization (or organisation — see spelling differences) is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment. The word itself is derived from the Greek word ὄργανον (organon) meaning tool. The term is used in both daily and scientific English in multiple ways. In the social sciences, organizations are studied by researchers from several disciplines, the most common of which are sociology, economics, political science, psychology, management, and organizational communication. The broad area is commonly referred to as organizational studies, organizational behavior or organization analysis. Therefore, a number of different theories and perspectives exist, some of which are compatible, and others that are competing. Organization – process-related: an entity is being (re-)organized (organization as task or action). Organization – functional: organization as a function of how entities like businesses or state authorities are used (organization as a permanent structure). Organization – institutional: an entity is an organization (organization as an actual purposeful structure within a social context). Humans, or human beings (Homo sapiens)(Latin: "wise human" or "knowing human"^[2]) are bipedal primates in the family Hominidae^[3][4] DNA evidence indicates that modern humans originated in Africa about 200,000 years ago.^[5] Humans have a highly developed brain, capable of abstract reasoning, language, introspection, and emotional suffering. This mental capability, combined with an erect body carriage that frees the forelimbs (arms) for manipulating objects, has allowed humans to make far greater use of tools than any other species. Humans now inhabit every continent on Earth, except Antarctica (although several governments maintain permanent research stations there, inhabited for short periods by scientists and other researchers). Humans also now have a continuous presence in low Earth orbit, occupying the International Space Station. The human population on Earth now amounts to over 6.6 billion, as of May 2008.^[6] Like most primates, humans are social by nature. However, they are particularly adept at utilizing systems of communication for self-expression, exchanging of ideas, and organization. Humans create complex social structures composed of many cooperating and competing groups, from families to nations. Social interactions between humans have established an extremely wide variety of traditions, rituals, ethics, values, social norms, and laws, which together form the basis of human society. Humans have a marked appreciation for beauty and aesthetics, which, combined with the desire for self-expression, has led to cultural innovations such as art, literature and music. Humans are notable for their desire to understand and influence the world around them, seeking to explain and manipulate natural phenomena through science, philosophy, mythology and religion. This natural curiosity has led to the development of advanced tools and skills; humans are the only extant species known to build fires, cook their food, clothe themselves, and manipulate and develop numerous other technologies. Humans pass down their skills and knowledge to the next generations through education. A resource is any physical or virtual entity of limited availability.^{[citation needed]} In most cases, commercial or even ethic factors require resource allocation through resource management. The field of finance refers to the concepts of time, money and risk and how they are interrelated. The term "finance" may thus incorporate any of the following: The study of money and other assets; The management and control of those assets; Profiling and managing project risks; The science of managing money; The industry that delivers financial services As a verb, "to finance" is to provide funds for business or for an individual's large purchases (car, home, etc.).