Controlling is a dynamic process and action or people-oriented. Controlling process involves the following: 

1. Setting performance standards: Standards may be of two types qualitative standard and quantitative standard. Performance standards are mainly derived from the objectives, goals, and expectations of the organization. 

The standards for control should satisfy the following requirement:

• It should be simple & easily understandable 
• It should be flexible, not rigid 
• It should be in accordance with the people responsible to achieve them. 
• It should be consistent with the overall objective of firm.

2. Measurement of Actual performance: Once these standards are fixed for desired performance the next step is to measure the actual performance. Measurement of performance should be clear, simple, rational, relevant, and understandable without complaints and interpretation.

3. Comparing the actual performance with standards: It involves two steps.

• Finding out the extent of deviations. 
• Identifying the causes of such deviations.

While comparing the actual performance with the standards the deviations are revealed. Once the deviations are noticed and causes for the same are determined corrective measures are adopted.

4. Analyzing the deviations: Deviations mean variations from the standards. Every deviation is analyzed to find out why it has occurred and who is responsible for the same. 

Deviations may be Negative, Positive or Zero.

• Negative Deviations: If actual performance is less than standard that leads to negative deviations. 
• Zero Deviations: If actual performance is equal to the standard that leads to Zero. deviations. 
• Positive Deviations: If actual performance is more than standard that leads to Positive. deviations.

5. Taking corrective actions: After finding what has gone wrong, where and why, management will initiate corrective action. 

The remedial actions may involve:

• Review and revision of goals or standards, 
• Change in the assignment of tasks 
• Provisions for additional resources or new facilities 
• Improvement in the selection and training of workers or reform in the technique of direction.