6 pom kc controlling
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6 pom kc controlling

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6 pom kc controlling 6 pom kc controlling Presentation Transcript

  • The ‘Controlling’ Function
    Principles of Management
  • What is Controlling?
    Simply put…
    It is the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
  • Why is it needed?
    To cope with changes… internally & externally
    To facilitate delegation and teamwork
    To create better quality and add value
    This will in turn, lead to:
    Judge accuracy of the standards that were set
    Improve performance
    Minimize undesirable behaviour
  • Understanding the Control Process
  • Understanding the Control Process
    Establish standards
    Quantity / targets, Quality, Monetary and Time-related
    Monitor performance
    Periodically checking and correcting minor deviations / problems
    Measure actual performance
    Actual measurement over a pre-decided time period. Eg: annually, half-yearly.
    Take corrective actions
    Post evaluation of ‘where one stands’, the co. takes actions to ensure original plans are met.
  • So in Essence, Controlling is…
    Both anticipatory and retrospective.
    The process anticipates problems and takes preventive action.
    With corrective action, the process also follows up on problems.
  • An Effective Control System Needs to have:
    Acceptability by all those who will enforce decisions
    Flexibility
    Accuracy
    Timeliness
    Cost effectiveness
    Balance between objectivity and subjectivity
    Coordinated with planning, organizing and leading
  • Controlling Techniques
    A variety of tools and techniques are used to help the manager control activities in their areas.
  • Types Of Controlling Techniques
    Traditional Techniques
    • Personal observation
    • Break-Even analysis
    • Statistical reports
    • Budgetary control
    Modern Techniques
    • Management Audit
    • Return on Investment
    • PERT & CPM
    • GANTT
    • Management Information
  • Techniques
    • GANTT
    • PERT
    (Programme Evaluation & Review Technique)
    • BUDGETING
  • What is the GANTT chart?
    • A Gantt chart is a type of bar chart that illustrates a project schedule.
    • Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project.
    • Terminal elements and summary elements comprise the work breakdown structure of the project.
  • Illustration
  • Programme Evaluation & Review Techniques (PERT)
    Definition:
    • Project management technique that shows the time taken by each component of a project, and the total time required for its completion.
    • PERT breaks down the project into events and activities, and lays down their proper sequence, relationships, and duration in the form of a network.
    • PERT is a scheduling tool, and does not help in finding the best or the shortest way to complete a project.
  • PERT Diagrams
  • PERT Diagrams
  • Illustration: simple building project to put an A/C unit in a factory
  • Advantages of PERT
    • Ensures Planning
    • All managers are involved
    • Forward-looking - Hence, helps to prevent deviations and take corrective measures quickly
    • Facilitates in decision-making
    • Improves communication
  • Disadvantages of PERT
    • Error in estimation of time & cost as no scope for ‘gestimates’
    • Quite complicated. One needs good knowledge and understanding for right application
    • Overemphasis on time, less on costs
  • Budgeting
    Definition:
    • “Budgeting is a part of management process which includes preparation of budget”.
    • Budget control, Budget co-ordination activities are related with budget.
  • Objectives of Budgeting
    • Establish Balancing Act.
    • Maximization of Profits.
    • Planning.
    • Forecasting.
    • Control Expenditure.
  • Advantages of Budgeting
    • Achievement of goals.
    • Control Expenditure.
    • Better Utilization Of Resources.
    • Solving Financial Difficulties.
    • Co-ordination in Working.
  • Limitations of Budgeting
    • Changing Conditions.
    • Time Consuming.
    • Budgets are based on Plan Estimates.
    • Conflicts among Departments.
    • Inaccuracy.
  • Effective Budgeting
    • Objectives.
    • Education.
    • Communication.
    • Reward & Punishment.