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UNIT-5
CONTROLLING

1. Control,
2. Types and Strategies for Control,
3. Steps in Control Process,
4. Budgetary and Non- Budgetary
Controls.
5. Characteristics of Effective Controls,
6. Establishing control systems,
7. Control frequency and Methods.
Defination
control, or controlling, is one of the managerial
functions like planning, organizing, staffing and directing.
In 1916,According to Henri Fayol
Control of an undertaking consists of seeing
that everything is being carried out in
accordance with the plan which has been
adopted, the orders which have been given, and
the principles which have been laid down.
Henri Fayol
According to Harold Koontz:
Controlling is the measurement and correction of
performance in order to make sure that enterprise
objectives and the plans devised to attain them are
accomplished.
According to Stafford Beer:
Management is the profession of control.
What is Strategic control?
Strategic control is focused on the achievement of
future goals, rather than the evaluation of past
performance
1. Premise control
2. Implementation control
3. Strategic surveillance
4. Special control
Types of Strategies control
types of control
STEPS OF CONTROL PROCESS
The control process is the system that
allows setting, measure, match and tweak
any business activities such as
production, packaging, delivery and more.
Steps of Control Process are;
1.Establishing standards and methods for
measuring performance.
2.Measuring the performance.
3.Determining whether performance matches
the standard.
4.Taking corrective action.
Establishing Standards and Methods for Measuring
Performance
Standards are, by definition, simply the criteria of
performance.
They are the selected points in an entire planning program at
which performance is measured so that managers can receive
signals about how things are going and thus do not have to
watch every step in the execution of plans.
Determining whether Performance Matches the Standard
It is an easy but important step in the control process. It
involves comparing the measured results with the
standards already se.
Measuring the Performance
The measurement of performance against
standards should be done on a forward-looking basis so
that deviations may be detected in advance of their
occurrence and avoided by appropriate actions.
Taking Corrective Action
This step becomes essential if performance falls short
of standards and the analysis indicates that corrective
action is required.
For example, the branch manager of a bank might discover that more
counter clerks are needed to meet the five-minute customer-waiting
standard set earlier
According to J.Batty, "Budgetory control is a system which
uses budgets as a means of planning and controlling all
aspects of producing and/or selling commodities or services".
Budgetary and Non- Budgetary Controls
1. ACCURATE
2. TIMELY
3. OBJECTIVEANDCOMPREHENSIBLE
4. FOCUSEDONSTRATEGICCONTROL POINTS
5. ECONOMICALLYREALISTIC
6. ORGANIZATIONALREALISTIC.
7. COORDINATEDWITHTHE ORGANIZATION'S
WORKFLOW
8. FLEXIBLE
9. PRESCRIPTIVEANDOPERATIONAL
10.ACCEPTEDBYORGANIZATIONMEMBERS.
Characteristics of Effective Controls
 Timely
Information must be collected, routed, and evaluated quickly if action is
is to be taken in time to produce improvements.
 Objective and Comprehensible
The information in a control system should be understandable and be
be seen as objective by the individuals who use it
 Focused on Strategic Control Points
The control system should be focused on those areas where deviations
deviations from the standards are most likely to take place
 Economically Realistic
The cost of implementing a control system should be equal to, the
benefits derived from the control system.
 Organizational Realistic
The control system has to be compatible with organizational realities
and all standards for performance must be realistic.
 Organizational Realistic
The control system has to be compatible with organizational realities
and all standards for performance must be realistic.
 Coordinated with the Organization's Work Flow
Control information needs to be coordinated with the flow of work
through the organisation
 Flexible
Controls must have flexibility built into them so that the organizations can
react quickly to overcome adverse changes or to take advantage of new
opportunities.
 Prescriptive and Operational
Control systems ought to indicate, upon the detection of the deviation from
standards, what corrective action should be taken.
 Accepted by Organization Members
For a control system to be accepted by organization members, the
Precontrol
In this stage problem are anticipated
Concurrent control
in this stage problems are corrected as they
occur
THE END
THANQ

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Controlling

  • 1.
  • 3.  1. Control, 2. Types and Strategies for Control, 3. Steps in Control Process, 4. Budgetary and Non- Budgetary Controls. 5. Characteristics of Effective Controls, 6. Establishing control systems, 7. Control frequency and Methods.
  • 4. Defination control, or controlling, is one of the managerial functions like planning, organizing, staffing and directing. In 1916,According to Henri Fayol Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Henri Fayol
  • 5. According to Harold Koontz: Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished. According to Stafford Beer: Management is the profession of control.
  • 6. What is Strategic control? Strategic control is focused on the achievement of future goals, rather than the evaluation of past performance
  • 7. 1. Premise control 2. Implementation control 3. Strategic surveillance 4. Special control Types of Strategies control
  • 9.
  • 10.
  • 11.
  • 12. STEPS OF CONTROL PROCESS The control process is the system that allows setting, measure, match and tweak any business activities such as production, packaging, delivery and more. Steps of Control Process are; 1.Establishing standards and methods for measuring performance. 2.Measuring the performance. 3.Determining whether performance matches the standard. 4.Taking corrective action.
  • 13.
  • 14. Establishing Standards and Methods for Measuring Performance Standards are, by definition, simply the criteria of performance. They are the selected points in an entire planning program at which performance is measured so that managers can receive signals about how things are going and thus do not have to watch every step in the execution of plans. Determining whether Performance Matches the Standard It is an easy but important step in the control process. It involves comparing the measured results with the standards already se.
  • 15. Measuring the Performance The measurement of performance against standards should be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. Taking Corrective Action This step becomes essential if performance falls short of standards and the analysis indicates that corrective action is required. For example, the branch manager of a bank might discover that more counter clerks are needed to meet the five-minute customer-waiting standard set earlier
  • 16. According to J.Batty, "Budgetory control is a system which uses budgets as a means of planning and controlling all aspects of producing and/or selling commodities or services". Budgetary and Non- Budgetary Controls
  • 17. 1. ACCURATE 2. TIMELY 3. OBJECTIVEANDCOMPREHENSIBLE 4. FOCUSEDONSTRATEGICCONTROL POINTS 5. ECONOMICALLYREALISTIC 6. ORGANIZATIONALREALISTIC. 7. COORDINATEDWITHTHE ORGANIZATION'S WORKFLOW 8. FLEXIBLE 9. PRESCRIPTIVEANDOPERATIONAL 10.ACCEPTEDBYORGANIZATIONMEMBERS. Characteristics of Effective Controls
  • 18.  Timely Information must be collected, routed, and evaluated quickly if action is is to be taken in time to produce improvements.  Objective and Comprehensible The information in a control system should be understandable and be be seen as objective by the individuals who use it  Focused on Strategic Control Points The control system should be focused on those areas where deviations deviations from the standards are most likely to take place  Economically Realistic The cost of implementing a control system should be equal to, the benefits derived from the control system.  Organizational Realistic The control system has to be compatible with organizational realities and all standards for performance must be realistic.
  • 19.  Organizational Realistic The control system has to be compatible with organizational realities and all standards for performance must be realistic.  Coordinated with the Organization's Work Flow Control information needs to be coordinated with the flow of work through the organisation  Flexible Controls must have flexibility built into them so that the organizations can react quickly to overcome adverse changes or to take advantage of new opportunities.  Prescriptive and Operational Control systems ought to indicate, upon the detection of the deviation from standards, what corrective action should be taken.  Accepted by Organization Members For a control system to be accepted by organization members, the
  • 20.
  • 21. Precontrol In this stage problem are anticipated Concurrent control in this stage problems are corrected as they occur