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Foundation of-controlling

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This a small presentation on the topic of controlling which is an important part of management. I hope this will help you to find the importance of controlling in brief.

Published in: Leadership & Management
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Foundation of-controlling

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  2. 2. Outline  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…..  Controlling Examples…. 2
  3. 3. Control : * A process of monitoring performance and taking action to ensure desired results . * Has a positive and necessary role in management process .  Importance : * Changes the environment of an organization *Reduces the complexity of the activities . *Solving the mistakes occurred by the members . *Empowering employees and protecting the workplace . 3
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  5. 5. Controlling Process Stages: 5
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  7. 7. Controlling Types and when does it take places: 7
  8. 8. Controlling Objectives: 8
  9. 9. Impact of Controlling on organizational performance:  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 constituencies’ needs 9
  10. 10. The output of controlling of An Organization:  Profits Return on revenue  Return on shareholders’ equity Growth in profits Revenues per employee Revenues per dollar of assets Revenues per dollar of equity 10
  11. 11. Tools for measuring organizational performance:  Feed Forward Control: Control that takes place before a work activity is done.  Concurrent Control: 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.  Feedback Control: Control that takes place after a work activity is done. 11
  12. 12. Balanced Scorecard: A performance measurement tool that examines more than just the financial perspective which measures a company’s performance in four areas..  Financial  Customer  Internal Processes  People /Innovation/Growth/Assets 12
  13. 13. Management Information Systems (MIS): A system used to provide management with needed information on a regular basis. Benchmarking: The search for the best practices among competitors or non-competitors that lead to their superior performance. Cross-Cultural Issues:  The use of technology to increase direct corporate control of local operations  Legal constraints on corrective actions in foreign countries  Difficulty with the comparability of data collected from operations in different countries 13
  14. 14. 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 14
  15. 15. Effective Controlling Requirements: 15
  16. 16. Examples of Controlling: 16
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