This presentation discusses about system and process of control in Principles of Management

1. UNIT V – CONTROLLING
R.ArunKumar,AP/Mech,RIT

2. SYLLABUS
System and process of controlling – budgetary and non-budgetary
control techniques – use of computers and IT in Management
control – Productivity problems and management – control and
performance – direct and preventive control – reporting.
R.ArunKumar,AP/Mech,RIT

3. Objective:
 To study various techniques for controlling the functions of
management.
Outcome:
 The student will be able to describe the control techniques and
the role of technology in management.
R.ArunKumar,AP/Mech,RIT

4. SYSTEM AND PROCESS OF CONTROLLING
CONTROLLING:
 According to Koontz and O‟Donnell“ Managerial control implies
measurement of accomplishment against the standard and
the correction of deviations to assure attainment of objectives
according to plans”
R.ArunKumar,AP/Mech,RIT

5. NATURE OF CONTROLLING:
1. Controlling is forward looking
R.ArunKumar,AP/Mech,RIT

6. NATURE OF CONTROLLING:
2. Controlling is goal oriented
R.ArunKumar,AP/Mech,RIT

7. NATURE OF CONTROLLING:
3. Controlling is pervasive in nature
R.ArunKumar,AP/Mech,RIT

8. NATURE OF CONTROLLING:
4. Controlling is a continuous process
R.ArunKumar,AP/Mech,RIT

9. NATURE OF CONTROLLING:
5. Controlling enables to make quick decisions
R.ArunKumar,AP/Mech,RIT

10. NATURE OF CONTROLLING:
6. Controlling is action based
R.ArunKumar,AP/Mech,RIT

11. NATURE OF CONTROLLING:
7. Controlling system should be acceptable
R.ArunKumar,AP/Mech,RIT

12. NATURE OF CONTROLLING:
8. Controlling should be participative
R.ArunKumar,AP/Mech,RIT

13. IMPORTANCE OF CONTROLLING:
 Enables managers to know whether goals are being met.
 Controlling provides a critical link back to planning.
 An effective control can provide information and feedback on
employee performance.
 Controlling protects organization and it‟s assets.
 Controlling provides effective supervision.
R.ArunKumar,AP/Mech,RIT

14. Planning – Controlling link:
R.ArunKumar,AP/Mech,RIT

15. TYPES OF MANAGERIAL CONTROL:
1. Financial control:
 Managers use financial statement such as income statement or
balance statement to monitor the progress of plans.
 Income statement shows the revenue, expense, profit, etc.
 Balance statement shows the worth of organization at a specific
time.
R.ArunKumar,AP/Mech,RIT

16. TYPES OF MANAGERIAL CONTROL: :
2. Budget control:
 Budget shows expectation of expense and the revenue to be
generated over a period of time.
R.ArunKumar,AP/Mech,RIT

17. TYPES OF MANAGERIAL CONTROL:
3. Marketing control:
 Helps to monitor the progress towards the goal of customer
satisfaction.
R.ArunKumar,AP/Mech,RIT

18. TYPES OF MANAGERIAL CONTROL:
4. Human resource control:
 Helps the manager to regulate and maintain quality of
employees in their job.
 e.g.: Training and development, performance appraisal,
disciplinary actions.
R.ArunKumar,AP/Mech,RIT

19. TYPES OF MANAGERIAL CONTROL:
5. Computers and information control:
 Helps to maintain confidential information from the hackers.
R.ArunKumar,AP/Mech,RIT

20. PROCESS OF CONTROLLING:
R.ArunKumar,AP/Mech,RIT

21. PROCESS OF CONTROLLING:
Step 1: Measuring actual performance:
 Managers should analyze „how and ‘what to measure’.
 Employee satisfaction, turnover, absenteeism, budgets are
control criteria(What)
 Common sources of information(How) for measuring performance.
R.ArunKumar,AP/Mech,RIT

22. PROCESS OF CONTROLLING:
Step 2: Comparing actual performance against standard:
 Its difficult to predict exactly the acceptable range of
variation.
R.ArunKumar,AP/Mech,RIT

23. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Managers can do three possible courses of action:
 Do nothing
 Correct actual performance
 Revise the standard
R.ArunKumar,AP/Mech,RIT

24. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Do nothing depends on individual decisions.
R.ArunKumar,AP/Mech,RIT

25. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Correct actual performance can be performed by either
immediate corrective actions, basic corrective actions.
 For e.g., corrective actions for unsatisfied work are training
programs, disciplinary actions, etc.
R.ArunKumar,AP/Mech,RIT

26. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 In some cases, variance may be due to unrealistic standards.
 Managers must be cautious about revising the standard
downward.
R.ArunKumar,AP/Mech,RIT

27. MANAGERIAL DECISION IN CONTROL PROCESS
R.ArunKumar,AP/Mech,RIT

28. CONTROL TYPES BASED ON TIME:
1. Feedback control:
 Feedback control is also called as post action control.
 Analyzes the past result and corrective actions are taken.
 e.g. Disciplinary actions
R.ArunKumar,AP/Mech,RIT

29. CONTROL TYPES BASED ON TIME:
2. Concurrent control:
 Concurrent control is also called as real time control.
 Corrective actions are meant for doing adjustments.
 e.g. Organization chart
R.ArunKumar,AP/Mech,RIT

30. CONTROL TYPES BASED ON TIME:
3. Feed forward control:
 This control evaluates the input and corrective measures are
implemented before the task in completed.
 e.g. Financial budgets.
R.ArunKumar,AP/Mech,RIT

31. CONTROL TYPES BASED ON TIME:
4. Strategic control:
 Involves monitoring of factors that could affect strategic
plans of an organization.
 These are meant for top level managers.
R.ArunKumar,AP/Mech,RIT

32. CONTROL TYPES BASED ON TIME:
5. Tactical control:
 Focuses on assessing the implementation of tactical plans at
departmental levels.
 These are meant for middle level managers.
R.ArunKumar,AP/Mech,RIT

33. CONTROL TYPES BASED ON TIME:
6. Operational control:
 Overseeing the implementation of day to day activities.
 These are meant for low level managers.
R.ArunKumar,AP/Mech,RIT