Controlling (2)

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Controlling (2)

  1. 1. CONTROLLINGBYKRISHNA SOUJANYAM120002MS
  2. 2. TYPES OF CONTROL• Based on elements to be controlled :  Strategic control.  Operational control.• Based on stage at which control can be exercised in controlling the work outcome :  Feed-forward control.  Concurrent control.  Feedback control.
  3. 3. BASED ON ELEMENTS TO BE CONTROLLED1. STRATEGIC CONTROL• Process of taking into account, the changing planning premises, both external and internal to the organization, on which the strategy is based.• Continuous evaluation of strategy along with its implementation.• Taking corrective actions to adjust the strategy to the new requirements.• Time lag between strategy formulation and its implementation- strategy may not work effectively.
  4. 4. 2. OPERATIONAL CONTROL• Concerned with action or performance.• Aimed at evaluating the performance of the organization as a whole or its different components – strategic business units, divisions, and departments.• Can be exercised at different stages of work performance.
  5. 5. FACTORS STRATEGIC CONTROL OPERATIONAL CONTROLBasic question Are we moving in the right How are we performing ? direction ?Aim Proactive, continuous questioning Allocation ad use of of the basic direction of strategy. organizational resources.Main concern Steering the future direction of the Action Control. organization.Focus External Environment. Internal Environment.Time horizon Long – term. Short – term.Exercise of Exclusively by top management, Mainly by executive orcontrol may be through lower level middle management on the support. direction of top management.Main Environmental scanning, Budgets, schedules.techniques information gathering, questioning and review.
  6. 6. BASED ON STAGE AT WHICH CONTROL CAN BEEXERCISED1. FEEDFORWARD CONTROL• Control of inputs that are required in an action.• Evaluation of inputs and taking corrective measures before a particular sequence of operation is completed.• Attempts to remove the limitations of time lag.• Monitors inputs into a process to determine whether the inputs are as planned or not.• Analogous to hunting a duck.
  7. 7. 2. CONCURRENT CONTROL• Exercised during the operation of the program.• Provides measures for taking corrective action or making adjustments while the program is still in operation and before any major damage is done.• E.g. Quality control during the operation, safety check in a factory.• Focus is on the process itself.• Data provided by this control system is used to adjust the process.
  8. 8. 3. FEEDBACK CONTROL• Based on the measurement of the results of an action.• Based on the above, if any deviation between performance standards and actual performance is found, then corrective action is undertaken.• Sometimes, feed-forward or concurrent control is not possible to apply. E.g. Personal characteristics of an individual which go into behavioural processes are not measurable.• Top management control is mostly based on feedback.• To make feedback control effective, it is essential that corrective action is taken as soon as possible.
  9. 9. STAGES OF CONTROL FEEDFORWARD CONCURRENT CONTROL CONTROL INPUTS PROCESSING OUTPUTS FEEDBACK CONTROL
  10. 10. CONTROLLING AND MANAGEMENT BYEXCEPTION• The important ways of tailoring controls for efficiency and effective ness is to make them without pointing out of exception.• In the other words, by concentrating on exceptions from planned performance, and time honored exception will lead managers to frame effective controlling in the organization.
  11. 11. MANAGEMENT BY EXCEPTION• Management by exception constitutes of six basic ingredients. They are1. MEASUREMENT2. PROJECTION3. SELECTION4. OBSERVATION5. COMPARISION6. DECISION MAKING
  12. 12. MANAGENT BY EXCEPTION• MEASUREMENT :- assigns values to past and present performance.This is to identify an exception.• PROJECTION :- analyze the measurements and turns them out into future expectations.• SELECTION :- Involves the criteria which management will use to progress towards organizational objectives.
  13. 13. MANAGEMNT BY EXCEPTION• OBSERVATION :- involves measurement of current performance• COMPARISION :- makes comparison of actual and planned performance and identifies the exceptions that require attention and reports the variances to management.• DECISION MAKING :- prescribes the action that must be taken in order to bring performance back into control. To adjust exceptions to reflect changing conditions. To exploit opportunities.
  14. 14. BENEFITS OF MANAGEMENT BY EXCEPTION• Saves time• Concentrates on executives efforts on major problems.• Better delegation authority, increases span of management and provides better opportunitiesfor self motivated personnel.
  15. 15. • Makes use of trends, history and available business data.• Identifies crisis and avoids uninformed,impulsive pushing of panic button.
  16. 16. • It provides qualitative and quantitative yard sticks for judging people and situations.• It helps in performance appraisal.• It enhances the degree of communication between different segments of organization.
  17. 17. QUALITY CONTROLQUALITY – a SENSE OF APPRECIATION that SOMETHING IS BETTER THAN SOMETHING elseIt changes in a LIFETIME, and it changes from GENERATION TO GENERATION, and it varies by facets of HUMAN ACTIVITYOperational point of viewQUALITY means focusing on the PRODUCTION of increasingly BETTER PRODUCTS AND SERVICES at progressively more COMPETITIVE PRICES
  18. 18. TOTAL QUALITY MANAGEMENT (TQM)• FIEGANBAUM’S DEFINITION :- Total composite of product and service characteristics of marketing, engineering, manufacturing, maintenance through which the product and service induced will meet the expectations of the customers.• INDIAN STATISTICAL INSTITUTE’S DEFINITION:- TQM is an integrated organizational approach in delighting customers(both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organization working on continuous improvement in all products, services and processes along with proper problem solving methodology.
  19. 19. PROCESSES OF TQM• QUALITY PROCESS :- involves the understanding of who the customer is, what is his needs, how are they satisfied.• CONTINUOUS IMPROVEMENT:- It is a continuous process of improving product quality and its delivery. It comprises of plan-to- check-do-check-act(PDCA). Evolving policies Objectives and methods to achieve goals Training to employees Implementation Checking causes for low quality. Taking appropriate action Preventing recurrence.
  20. 20. • PEOPLE PROCESS :- Deals with initiating and maintaining TQM. Involves employee in three steps. Intellectual honesty. Self-control. Respect for others.• PROBLEMS AGAINST TQM ORGANIZATIONAL BARRIERS. LACK OF SUPPORT ATTUDINAL BARRIERS. ATTITUDE TOWARDS TRAINING, MANAGEMENT STYLES, APPROACH TOWARDS QUALITY.
  21. 21. SUMMARY• TYPES OF CONTROL• CONTROLLING AND MANAGEMENT BY EXCEPTION• BENEFITS OF MANAGEMENT BY EXCEPTION• QUALITY CONTROL• TOTAL QUALITY MANAGEMNT

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