Final answer:
The manager is engaged in the controlling function of management which includes comparing actual performance with set standards and adjusting as needed.
Step-by-step explanation:
The manager who has completed the last annual performance review, reviewed unexpected expenditures, and shared quality indicators is performing the controlling function of management. The controlling function involves measuring current performance against established standards and taking corrective action when necessary. By analyzing performance reviews and comparing budgetary expectations to actual expenditures, as well as disseminating quality indicators among staff, the manager is closely monitoring and adjusting organizational processes and performance.