The document discusses the controlling function of management. It defines controlling as monitoring, comparing, and correcting work performance to ensure objectives are met properly and on time. The main types of control discussed are feedforward, concurrent, and feedback controls. Various control tools and techniques are also outlined, including project management, inventory control, financial ratios, balanced scorecards, and management information systems. Characteristics of effective control systems emphasize being suitable, timely, objective, flexible, economical, and focusing on strategic points while motivating high performance.

1. Jedaiah Anne Ocampo
THE MANAGEMENT
FUNCTION OF

2. CONTROLLING
The process of monitoring, comparing, and
correcting work performance
It sees to it that right things happen,
in the right way, and at the right time.
MAIN IMPORTANCES
1. Planning
2. Empowering Employees
3. Protection of Organization
and its assets
Planning is the basis, action is the
essence, delegation is the key,
information is the guide , control is
the lifeblood of the success of any
business

3. TYPES OF CONTROL
Feedforward Controls
Ensure the right
directions are set and
the right resource inputs
are available
Work Inputs
Concurrent Controls
Ensure the right things
are being done as part
of workflow operations
Work Throughputs
Feedback Controls
Ensure that final results
are up to desired
standards
Work Outputs
(Preliminary Control)
(Steering Control)
(Post-action Control)

4. Managers’ Options:
1.Internal Control
Allows motivated individuals to exercise self-control in
fulfilling job expectations
TYPES OF CONTROL
2. External Control
Occurs through personal supervision and the use of
formal administrative systems
● Bureaucratic Control – uses authority, policies, procedures, job-
description , budgets and day-to-day supervision
●Clan Control – influences behavior through norms and expectations
●Market Control –influence of customers and competition
“The key to my success has been in identifying talented individuals and
harnessing their efforts.” Mr. Christian Grey

5. THE CONTROL PROCESS
1. Establish Objectives and Standards
Output Standards measure actual outcomes or work results.
Input Standards measure work efforts that go into a performance task.
2. Measure Actual Performance
The point where output standards and input standards are used to
carefully document results.
What?
Written reports
Oral reports
Statistical reports
Personal observation
How?
-often determines what employees will do
-this will be the criteria

6. 3. Compare results with Objectives and
Standards
Need for Action = Desired Performance – Actual Performance

7. 4. Take Manegerial Action
Managerial Decisions in the Control Process
• Correct Actual
Performance
• Revise the
Standards
• Do nothing

8. CHARACTERISTICS OF CONTROL
1. Control is a function of every manager
2. Control leads to appraisal of past activities
3. Control is linked with future
4. Control is the systematic effort of comparing
performance to plans
5. Control implies taking corrective measures
6. Control can be exercised only with reference to and or
the basis of plans
7. Control is based on facts and figures
8. Information or feedback is the guide to control
9. Control involves a continuous review of standards of
performance and results in corrective action
10. Control is a continuous activity

9. Measures of Organizational Performance
1. Organizational Productivity
-the amount of goods or services produced divided by
the inputs needed to generate that output
The accumulated results of
all the organization’s work
activities
2. Organizational Effectiveness
-a measure of how appropriate organizational goals are and
how well those goals are being met
3. Industry and Company Rankings
-indicator of how company performs in comparison to others

10. CONTROL TOOLS AND TECHNIQUES
1. Project Management and Control
Projects - complex one time-events with unique
components and an objective that must be met
within a set time
Project management –the responsibility for over-
all planning, supervision and control of projects.
1. Gantt Chart
2. CPM/PERT (Critical path method and the program
evaluation and review technique)

11. Gantt Chart
Advantages:
1.Provide graphical representation of when
activities might take place.
2.Helps to plot :
• Extension of time for completion of work
• Changes to the sequence of work
• Acceleration of project
• Prolongation of project
Limitations:
1. Do not clearly indicate details
regarding the progress of activities
2. Do not give a clear indication of
interrelation ship between the
separate activities

12. CPM/PERT
Advantages:
1.Breaks a project into a series of small sub-
activities that each have clear beginning and
end points.
2.The full-diagram shows all the
interrelationships that must be coordinated
for the entire project to be successfully
completed
Limitations:
1.The technique relies on past data and
experience to formulate completion time
predictions.
2.It focuses primarily on the time aspect of
activities, neglecting other concerns, such
as quality and cost control.

13. CONTROL TOOLS AND TECHNIQUES
2. Inventory Control
-ensures that inventory is only big enough to meet
immediate needs.
• Economic Order Quantity
• Just-in-time Scheduling
3. Breakeven Analysis
Breakeven – occurs at the point
where revenues just equal costs
Breakeven Point = Fixed Costs ÷
(Price – Variable Costs)

14. 4. Financial Control
Facilitated by a variety of financial ratios such as:
CONTROL TOOLS AND TECHNIQUES
Liquidity – measures ability to meet short-term obligations (higher)
Leverage – measures use of debt (lower)
Asset Management – measures asset and inventory efficiency (higher)
Profitability – measures ability to earn revenues greater than costs (higher)

15. 5. Balanced Scorecards
-measures overall organizational performance in four areas:
•Financial performance
How well do our action directly
contribute to improved financial performance?
•Customer satisfaction
How well do we serve customers and clients?
6. Information Control
Managers need the right information at the right time and in the right amount
to monitor and measure organizational activities and performance.
Management Information System (MIS) – a system used to
provide managers with needed information on a regular basis
CONTROL TOOLS AND TECHNIQUES
• Internal Process Improvement
How well do our activities and processes
directly increase the value we provide our
customers and clients?
• Innovation and Learning
How well are we learning , changing, and
improving things over time?

16. ESSENTIALS OF
EFFECTIVE CONTROL SYSTEMS
1. Suitable
2. Timely and Forward Looking
3. Objective and Comprehensive
4. Flexible
5. Economical
6. Acceptable to Organization Members
7. Motivate People to High Performance
8. Leads to corrective action
9. Reflection of Organization Pattern
10. Human Factor
11. Direct Control
12. Focus on Strategic Points

17. `

18. References
• Schermerhorn, J. Jr. (2013). Introduction to Management
• Robbins & Coutler, M. (2012). Management
• Assam don Bosco University. Principles of Management
• https://www.wisdomjobs.com/e-university/principles-of-management-and-o
• http://smallbusiness.chron.com/cpm-pert-weaknesses-strengths-1082.htm