controlling is a unit in fundamentals of management subject proposed by jntuh for b.tech r16 batch

1. CONTROLLINGCONTROLLING
UNIT – VUNIT – V
Prem KamalPrem Kamal

2. INDEXINDEX
 INTRODUCTIONINTRODUCTION
 CONTROLLING AS A FUNCTION OF MANAGERSCONTROLLING AS A FUNCTION OF MANAGERS
 CONTROLLING AS A PROCESSCONTROLLING AS A PROCESS
 TYPES AND STRATERGIES FOR CONTROLTYPES AND STRATERGIES FOR CONTROL
 BUDGET AND BUDGETARY CONTROLBUDGET AND BUDGETARY CONTROL
 CHARACTERISTICS OF EFFECTIVE CONTROLSCHARACTERISTICS OF EFFECTIVE CONTROLS
 ESTABLISHING CONTROL SYSTEMSESTABLISHING CONTROL SYSTEMS
 CONTROL FREQUENCY AND METHODSCONTROL FREQUENCY AND METHODS
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3. INTRODUCTIONINTRODUCTION
 Essential managerial function.Essential managerial function.
 Measure and align the performance ofMeasure and align the performance of
their team members.their team members.
 Involves in achieving the targets.Involves in achieving the targets.
 Essence of this concept is inEssence of this concept is in
determining whether the activity isdetermining whether the activity is
achieving the desire results.achieving the desire results.
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4. CONTROLLING AS ACONTROLLING AS A
FUNCTION OF MANAGERSFUNCTION OF MANAGERS
 Without control,the purpose ofWithout control,the purpose of
management is not achieved.management is not achieved.
 It ensures the delivery ofIt ensures the delivery of
performance,achievement ofperformance,achievement of
results,achievement of purpose ofresults,achievement of purpose of
organisation.organisation.
 It starts with the targets or plans set forIt starts with the targets or plans set for
performance.performance.
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5. CONTROLLING AS ACONTROLLING AS A
FUNCTION OF MANAGERSFUNCTION OF MANAGERS
 Controlling in planning & planning inControlling in planning & planning in
contollingcontolling
 Once the performance is delivered, it isOnce the performance is delivered, it is
compared with targets or plans.compared with targets or plans.
 Controlling is in last position ofControlling is in last position of
managements but it appears in allmanagements but it appears in all
functions.functions.
 It ensues that the right things happen inIt ensues that the right things happen in
right way at right timeright way at right time Prem Kamal

6. CONTROLLING AS ACONTROLLING AS A
PROCESSPROCESS
1.1. Establishment of standards ofEstablishment of standards of
performance.performance.
2.2. Measurement of Actual Performance.Measurement of Actual Performance.
3.3. Compare.Compare.
4.4. Take Remedial Measures.Take Remedial Measures.
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7. 1.1. Establishment of standards ofEstablishment of standards of
performance.performance.
 Standards or plans are the basic criteria.Standards or plans are the basic criteria.
 Standards maybe expressed in terms ofStandards maybe expressed in terms of
qualityquality
i.i. QUALITY:-QUALITY:- not more than 4defects for a millionnot more than 4defects for a million
of operationsof operations
ii.ii. QUANTITY:- how many units are to beQUANTITY:- how many units are to be
produced per hourproduced per hour
iii.iii. TIME :- to be completedTIME :- to be completed
iv.iv. COST:- total costCOST:- total cost
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8. 2.Measurement of Actual2.Measurement of Actual
PerformancePerformance
 After setting the standard ofAfter setting the standard of
performance,actual performance has toperformance,actual performance has to
be measured.be measured.
 Reviews and dataReviews and data
 Financial health,attitude of work space,Financial health,attitude of work space,
loyalty of senior managers,brand quality,loyalty of senior managers,brand quality,
etc cannot be measuredetc cannot be measured
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9. 3.Compare3.Compare
 Compare actual performance and standards ofCompare actual performance and standards of
the performancethe performance
 verify if any deviationsverify if any deviations
 Find positive patterns and sustainFind positive patterns and sustain
 Find negative patternsFind negative patterns
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10. 4.Take Remedial Measures4.Take Remedial Measures
 For negative patterns take differentFor negative patterns take different
steps to ensure actual performance issteps to ensure actual performance is
equal to standard of performanceequal to standard of performance
 Analyse the problemAnalyse the problem
 Boost the performanceBoost the performance
 There may be chance of actual performanceThere may be chance of actual performance
is higher than standards, then revise theis higher than standards, then revise the
standards.standards.
 Then plans have to be redrawnThen plans have to be redrawn
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11. TYPES AND STRATERGIES
1. Feedforward Controls
2. Concurrent Controls
3. Feedback Control
4. Direct Control
5. Preventive Control
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12. Feedforward Controls
 Also called as PRELIMINARY CONTROLS.
 They done before work begins.
 Sure and proper directions can be set.
 Problems are identified and prevented
 Improves planning and contribute to functional
effectiveness.
 Right quality and quantity will be available
 EX:- OPERATION THEATRE
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13. 2.Concurrent Controls
 Applied in real time where problem occur.
 Employee activity is measured against the given
standards
 It allows manager to monitor the work.
 Ex:- TRAFFIC POLICE COMMISIONER
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14. 3.Feedback Control
 If negative pattern arises, it takes the reason.
 Responsibility of manager to give feedback to
the concerned employee about performance.
 The manager must develop and implement a
programme for corrective action.
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15. BUDGET AND BUDGETARYBUDGET AND BUDGETARY
CONTROLCONTROL
 Budget is a plan of expenditure for a given
future period of time.
 Budgeting is a process of formulation of plans
for different departments in organisation.
 Manager can understand :-
1.What is spent
2.How much is produced
3.Who is spending
4.Is it in controlling or not
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16. Budgetary control Definiition:-
It is a process of formulating budgets
for a future period and measuring the
actual performance as against the
budgets and taking remedial
measures,if any for effective
performance.
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17. TYPES OF BUDGET:-
a) Production Budget
b) Materials Budget
c) Sales Budget
d) Advertisement Budget
e) Labour Hour Budget
f) Machine Hour Budget
g) Overheads Budget
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18. TYPES OF BUDGET:-
f) Space Budget
g) Materials Budget
h) Cash Budget
i) Capital Expenditure Budget
j) Master Budget
k) Flexible Budget
l) Zero based Budgeting
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19. Effective Budgetary ControlEffective Budgetary Control
1. Top Management
2. Employee Participation
3. Standards
i.Input
ii.Output
4. Availabilty of information
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20. Non Budgeting Control Device
1. Statistical data
2. Special Reports and Analysis
3. Break even Analysis
4. Internal Auditing
5. Time event network Analysis
6. Standard costing and variance Analysis
7. Ratio Analysis
8. Personal observation.
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21. Characteristics of Effective
Controls
 Controls should be tailor made
 Control should be point up exceptions at
critical points
 Controls should be Objective
 Controls should be flexible
 Controls should be fit to Organisational
climate
 Controls should be economical
 Controls should lead to corrective action.
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22. CONTROL FREQUENCY ANDCONTROL FREQUENCY AND
METHODSMETHODS
 Control Frequency:-
Control frequency is refers
to how frequently the controls need to be
exercised within a given period of time.
 Control Frequency depends upon the several
factors
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23.  Factors:-
1. The quality expectations
2. Process speed
3. Scope for corrections
4. Project cost
5. Urgency
6. Any other factor affecting the cost, quality,
time, and service
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24. METHODS:-
1. Constant Controls
2. Periodic Controls
3. Occasional Controls
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25. Constant Control :-
a) Self control
b) Clan control (group control)
c) Standing Plans
(imposing policies, procedures and rules to
improve employees behaviour.)
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26. Periodic controls :-
a) Regular Meetings and Reports
b) Budgets
c) Audicts
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27. AUDITS:-
1. Accounting audits
2. Management audits
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28. Occasional Controls :-
a) Observation ( cameras, electronic devices,
Management By Walking around)
b) Exception Principle ( gives authority to
employees to interact with manager directly)
c) Special Reports ( requesting special reports
from employees)
d) Project Control (associated with projects and
programs to implement control system
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29. Thank you
Prem Kamal