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Controling implementation


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  • 1. Controlling Implementation A part of Lecture Note for Hospital Management By Dr. Fahmy Radhi, MBA
  • 2. Controlling
    • Control – the process of ensuring that actual activities conform to planning activities
    • Why Control is needed:
      • To cope with changes internally and externally
      • To faced more organizational complexity
      • To facilitate delegation and teamwork
      • To create better quality
      • To create faster cycles
      • To add value
  • 3. Steps in Control Process
    • Establish standards:
      • Physical standard – products quantities
      • Monetary standard – Income, cost and profit
      • Time standard – production time
    • Establish methods for measuring performance by determining: how often and what form in measuring, and who are involved
    • Measure the performance through observations, reporting analysis, inspection and automatically methods
    • Determine whether performance matches the standard
    • Take correction actions
    • Qualitative methods used by management to control overall organization performance and employees’ performance through:
      • Management by Exception (MBE),
      • Management by Objective (MBO)
    • Quantitative methods used by management to control functional department, revenue and const center by using some quantitative techniques, such as financial controls, budgetary controls, auditing, time and activity control
  • 5. Controlling Techniques
    • Qualitative Techniques:
        • Control by observation
        • Regular control and spot inspection
        • Control by oral and writing repots
        • Result evaluation
        • Discussion
    • Quantitative Techniques:
        • Financial control
        • Budgetary control
        • Time and Activity control
  • 6. Financial Controls
    • Financial statement – monetary analysis by monitoring major financial conditions from balance sheet and income statement, including:
      • Liquidity
      • Solvability
      • Profitability
    • Cash flow analysis – summary of an organization’s financial performance applied in a period time, including:
      • Cash inflow
      • Cash outflow
  • 7. Budgetary Control Techniques
    • Responsibility center
    • Revenue center
    • Cost center
    • Profit center
    • Investment center
  • 8. Variable versus Fixed Budget
    • Fixed cost – the expenses that are unaffected by the amount of work accumulated in the responsible center, e.g. monthly salaries, insurance payment, rent and R&D expenditures
    • Variable cost – the expenses that vary directly with the amount of the works proportionally way, e.g. raw material cost, the more goods produced, the grater the quantity of raw material needed
    • Semi-variable cost – the expenses that vary directly with the amount of the works but not proportionally way, e.g. labor cost, overhead cost
  • 9. Auditing Control Techniques
    • External auditing – the verification process involving the independent appraisal of finance account and statement or accountant public
    • Internal auditing - audit performance by the organization to ensure that its assets are properly used and its financials record reliability kept
  • 10. Time and Activity Control Techniques
    • Gantt Chart
    • Program Evaluation and Review Technique (PERT)
    • Critical Path Methods
  • 11. Gantt Chart
  • 12. Program Evaluation and Review Technique (PERT)
  • 13. Critical Path Methods
  • 14. Characteristics of the effective control
    • Using accurate and objective information
    • Focusing on strategic control
    • Good coordination
    • Accepted by organization members
    • Realistic, measurable and flexible