Grade 11 Organization and Management

1. CONTROLLING
by: Hilda D. Dragon

2. OBJECTIVES:
1. Know the nature of controlling.
2. Distinguish control methods and systems.
3. Apply the concept of different control methods in accounting
and marketing.

3. REVIEW:
oLeading is a management function that involves the inspiring and influencing of people
in the organization to achieve a common goal.
oSuccessful leadership begins by focusing on the psychological well-being of both the
employer or the leader and the employee or the subordinate.
oHealthy personality is possessed by persons who are fully functioning in mind, body
and spirit.
oJob satisfaction and productivity are related.
oContemporary theories of leadership based on situational control are the Fiedler
Model, Hersey-Blanchard Model, and Path Goal Theories.
oModern leadership views include the following theories: Transactional,
Transformational, Charismatic, Visionary, Team Leadership and Servant Leadership.
oLeaders and subordinates must be effective communicators. Communication is the
interpersonal exchange of information and understanding among organization
members.

4. What is Controlling?
Controlling is a management function which involves ensuring the work
performance of the organization members aligned with the
organization’s values and standards through monitoring, comparing, and
correcting their actions.

5. Why is management control
important?
Management control makes sure that the operating cash flow of the firm
is enough or sufficient, efficient, and of course, profitable when invested.

6. Why is management control
important?
 The working capital of the enterprise must be properly controlled.
 The decisions to borrow funds should be appropriate.
 The organization’s activities must be regularly and continuously
monitored and a corrective action must immediately take place in the
event that circumstances do not conform to what has been planned or
expected.

7. THE CONTROL PROCESS
Establishing standards.
Set of criteria for
performance.
Measuring and
reporting actual
performance and
comparing it with set
standards.
Monitor performance.
Taking action.
Correction of deviation
from set standards.

8. What is a Balance Sheet?
 Balance sheet is a financial statement which is defined by most
accounting books as the “snapshot” of any entity’s financial condition
because it presents the financial balances of a particular period.
 It follows a pro forma accounting entry which is A= L+ C or the total
assets (A) must be equivalent to the aggregate summation of liabilities
(L) and capital(C) or owner’s equity.
 Assets, Liabilities, and Capital are the three accounting values or
elements.

9. Assets, Liabilities and Capital
o Assets are items your company own and can provide future
economic benefits. It includes cash, receivables, inventories,
property and equipment, etc
o Liabilities are debts or financial obligations of a
company to other company, individual or group.
o Capital is an investment.

10. Balance Sheet

11. What is a Income Statement?
 Income statement is also known as the profit and loss statement,
revenue and expenses statement, or statement of financial
performance.
 It displays the cost and expenses charged to recognize revenues in a
specific period.
 Basically, it shows whether the company earned or loss in the
company.

13. What is a Cash Flow Statement?
 A statement of Cash flow summarizes the inflow and outflow of cash
during a given period.
 Inflow activities are those that result in providing the firm with sources
of funds.
 Outflows result in cash leaving the firm due to disbursements or
expenses that utilizes cash.
 Without adequate cash for the funding operations and growth, timely
payment of obligations, and for compensating owners and employees,
the firm will fail.

14. 10,000