6 pom kc controlling

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6 pom kc controlling

  1. 1. The ‘Controlling’ Function<br />Principles of Management<br />
  2. 2. What is Controlling?<br />Simply put…<br />It is the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.<br />
  3. 3. Why is it needed?<br />To cope with changes… internally & externally<br />To facilitate delegation and teamwork <br />To create better quality and add value<br />This will in turn, lead to:<br />Judge accuracy of the standards that were set<br />Improve performance <br />Minimize undesirable behaviour<br />
  4. 4. Understanding the Control Process<br />
  5. 5. Understanding the Control Process<br />Establish standards<br />Quantity / targets, Quality, Monetary and Time-related<br />Monitor performance<br />Periodically checking and correcting minor deviations / problems<br />Measure actual performance<br />Actual measurement over a pre-decided time period. Eg: annually, half-yearly.<br />Take corrective actions<br />Post evaluation of ‘where one stands’, the co. takes actions to ensure original plans are met.<br />
  6. 6. So in Essence, Controlling is…<br />Both anticipatory and retrospective. <br />The process anticipates problems and takes preventive action. <br />With corrective action, the process also follows up on problems.<br />
  7. 7. An Effective Control System Needs to have:<br />Acceptability by all those who will enforce decisions <br />Flexibility <br />Accuracy <br />Timeliness <br />Cost effectiveness <br />Balance between objectivity and subjectivity <br />Coordinated with planning, organizing and leading <br />
  8. 8. Controlling Techniques<br />A variety of tools and techniques are used to help the manager control activities in their areas. <br />
  9. 9. Types Of Controlling Techniques<br />Traditional Techniques<br /><ul><li>Personal observation
  10. 10. Break-Even analysis
  11. 11. Statistical reports
  12. 12. Budgetary control</li></ul>Modern Techniques<br /><ul><li>Management Audit
  13. 13. Return on Investment
  14. 14. PERT & CPM
  15. 15. GANTT
  16. 16. Management Information</li></li></ul><li>Techniques<br /><ul><li>GANTT
  17. 17. PERT </li></ul>(Programme Evaluation & Review Technique)<br /><ul><li>BUDGETING</li></li></ul><li>What is the GANTT chart?<br /><ul><li> A Gantt chart is a type of bar chart that illustrates a project schedule.
  18. 18. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project.
  19. 19. Terminal elements and summary elements comprise the work breakdown structure of the project.</li></li></ul><li>Illustration<br />
  20. 20. Programme Evaluation & Review Techniques (PERT)<br />Definition:<br /><ul><li>Project management technique that shows the time taken by each component of a project, and the total time required for its completion.
  21. 21. PERT breaks down the project into events and activities, and lays down their proper sequence, relationships, and duration in the form of a network.
  22. 22. PERT is a scheduling tool, and does not help in finding the best or the shortest way to complete a project.</li></li></ul><li>PERT Diagrams<br />
  23. 23. PERT Diagrams<br />
  24. 24. Illustration: simple building project to put an A/C unit in a factory<br />
  25. 25.
  26. 26. Advantages of PERT<br /><ul><li>Ensures Planning
  27. 27. All managers are involved
  28. 28. Forward-looking - Hence, helps to prevent deviations and take corrective measures quickly
  29. 29. Facilitates in decision-making
  30. 30. Improves communication</li></li></ul><li>Disadvantages of PERT<br /><ul><li>Error in estimation of time & cost as no scope for ‘gestimates’
  31. 31. Quite complicated. One needs good knowledge and understanding for right application
  32. 32. Overemphasis on time, less on costs</li></li></ul><li>Budgeting<br />Definition:<br /><ul><li> “Budgeting is a part of management process which includes preparation of budget”.
  33. 33. Budget control, Budget co-ordination activities are related with budget.</li></li></ul><li>Objectives of Budgeting<br /><ul><li>Establish Balancing Act.
  34. 34. Maximization of Profits.
  35. 35. Planning.
  36. 36. Forecasting.
  37. 37. Control Expenditure.</li></li></ul><li>Advantages of Budgeting<br /><ul><li> Achievement of goals.
  38. 38. Control Expenditure.
  39. 39. Better Utilization Of Resources.
  40. 40. Solving Financial Difficulties.
  41. 41. Co-ordination in Working.</li></li></ul><li>Limitations of Budgeting<br /><ul><li>Changing Conditions.
  42. 42. Time Consuming.
  43. 43. Budgets are based on Plan Estimates.
  44. 44. Conflicts among Departments.
  45. 45. Inaccuracy.</li></li></ul><li>Effective Budgeting <br /><ul><li>Objectives.
  46. 46. Education.
  47. 47. Communication.
  48. 48. Reward & Punishment.</li>

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