Approaches to controll
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Approaches to controll

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how management can maintain control

how management can maintain control

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Approaches to controll Approaches to controll Presentation Transcript

  • Prepared By: Tribeni Gogoi Shreyash Patel Nimesh Soni
  •  The traditional control process includes:• Establishing a standard, goal, or target; measure actual performance against standard; and taking corrective action.• It also involves analyzing reasons for deviations, reviewing alternative courses of action, and choosing/implementing the most promising solutions.
  • Setting goals Controlling Taking Evaluationcorrective of steps performance
  •  Traditional control systems involve setting standards and then monitoring performance. There are three types of traditional controls:  Diagnostic controls  Boundary controls, and  Interactive controls.
  •  Diagnostic control systems aim to ensure that the firm’s targets and goals are being met and that any discrepancies can be diagnosed and explained.
  •  Budgets (e.g., income statement, balance sheet, etc.) are probably the most widely used control device. They are formal financial expressions of a manager’s plans. The first step in budgeting is to develop a sales forecast and sales budget.
  •  Managers also use financial ratio analysis to monitor performance and maintain control. Financial ratios compare one financial measure on a financial statement to another. Analyzing these rations helps managers understand their firm’s performance.
  •  Boundary control systems establish the rules or boundaries and identify actions and pitfalls that must be avoided. Examples of boundary controls include ethics standards, codes of conduct, and strategic policies.
  •  Interactive strategic control is a real-time, usually face-to-face method of monitoring both a strategy’s effectiveness and the underlying assumptions on which the strategy was built. This approach can be very useful for managing change because managers can get a better feel for the importance of information through face-to- face communication.
  •  Commitment-based control relies on employees’ self- control to keep things under control. Commitment-based control systems rely on getting the employees themselves to want to do things right—they emphasize self-control.
  •  Target Setting by Employees itself Self Discipline code generated by mutual understanding.