Controling implementation

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Controling implementation

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

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