Define Controlling & its importance .
Controlling Process Stages …
Controlling Types & when does it take place …..
The Objectives Of Controlling….
The Impact Of Controlling…….
Tools For Measuring Organizational performance..
Effective Controlling requirements…..
* A process of monitoring performance and taking
action to ensure desired results .
* Has a positive and necessary role in management
* Changes the environment of an organization
*Reduces the complexity of the activities .
*Solving the mistakes occurred by the members .
*Empowering employees and protecting the
Impact of Controlling on organizational
Measuring how appropriate organizational goals are and
how well the organization is achieving its goals.
Systems resource model
The ability of the organization to exploit its environment in
acquiring scarce and valued resources
The process model
The efficiency of an organization’s transformation process in
converting inputs to outputs
The multiple constituencies model
The effectiveness of the organization in meeting each
The output of controlling of An Organization:
Return on revenue
Return on shareholders’ equity
Growth in profits
Revenues per employee
Revenues per dollar of assets
Revenues per dollar of equity
Tools for measuring organizational performance:
Feed Forward Control:
Control that takes place before a work activity is
Control that takes place while a work activity
is in progress.
Management by Walking Around:
A term used to describe when a manager is out
in the work area.
Control that takes place after a work activity is
A performance measurement tool that
examines more than just the financial perspective
which measures a company’s performance in four
Management Information Systems (MIS):
A system used to provide management with needed
information on a regular basis.
The search for the best practices among competitors
or non-competitors that lead to their superior performance.
The use of technology to increase direct corporate control of
Legal constraints on corrective actions in foreign countries
Difficulty with the comparability of data collected from
operations in different countries
Other measurement scales of Controlling:
Economic Value Added (EVA):
How much value is created by what a company does
with its assets, less any capital investments in those assets:
the rate of return earned over and above the cost of capital.
Market Value Added (MVA):
The value that the stock market places on a firm’s
past and expected capital investment projects