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Coordinating and controlling


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Coordinating and controlling

  1. 1. CONTROLLING and COORDINATING PREPARED BY: Padum Chetry Pragya Haloi Upasana Madhukalya Govinda Roy
  2. 2. CONTENTS CONTROLLING Concept: meaning, definition Features, steps Major control techniques Essentials of an effective control system Importance COORDINATION Meaning, definition and features Importance and Principles Major coordination techniques
  4. 4. CONTROLLING - Management control refers to setting of predetermined standards, comparing actual performance with these standards and if required, taking corrective actions to ensure the achievement of organizational goals. ‘‘Managerial control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.’’ -Koontz and O’Donnell
  5. 5. Features:  Determines standards, norms and goals  Fundamental management function.  It is all pervasive.  Continuous activity.  It is related to results.
  6. 6. STEPS IN THE PROCESS OF CONTROLLING 1.Setting performance standards 2.Measurement of actual performance against standards. 3.Identification of deviations. 4.Analysis of deviations. 5.Initiating corrective actions.
  7. 7. Techniques of controlling: a) Past oriented and future oriented b)Market control, bureaucratic control and clan control c)Old control and new control techniques
  8. 8. 1. Personal Observation 2. Statistical Reports 3. Break – even analysis 4. Budgetary control Traditional techniques
  9. 9. 1. Return on Investment (ROI) 2. Management Audit 3. Management Information System(MIS) 4. Zero-based Budgeting (ZBB) 5. PERT (Programme Evaluation and Review Technique)/CPM(Critical Path Method) 6. Ratio Analysis 7. Responsibility Accounting Modern techniques
  10. 10. Essentials of an effective control system • Suitable • Timely and forward looking • Objective and comprehensible • Flexible • Economical • Prescriptive and operational • Acceptable to organization members • Reveal exceptions at strategic points • Motivate people to high performance • Should not lead to less attention to other aspects • Should be periodically reviewed and evaluated
  11. 11. Importance of controlling:  Accomplishing organizational goals  Judging accuracy of standards  Making efficient use of resources  Improving employee motivation  Ensuring order and discipline  Facilitating coordination in action
  12. 12. RELATIONSHIP BETWEEN PLANNING AND CONTROLLING  PLANNING identifies action and CONTROLLING ensures that those actions are carries out properly.  Poor control system is followed by failure of plans and effective control system reinforces the present plans.  Controlling helps the managers in either revising their plans or abandoning them altogether.  Framing plans presume the existence of a well designed control system and the controlling function similarly presumes the existence of plans which are well within the reach of the organization
  14. 14. COORDINATION - an orderly arrangement of group efforts to maintain harmony among individuals efforts towards the accomplishment of common goals of an organization. ‘‘Coordination is balancing and keeping together the team by ensuring suitable allocation of tasks to the various members and seeing that the tasks are performed with harmony among the members themselves.’’ -E.F.L.Brech Features:  Continuous activity  Dynamic process  Integrates group efforts  Responsibility of all managers  Ensures unity of action  A deliberate function
  15. 15. Principles: Mary Parker Follet has suggested the following principles of coordination:  Principle of Early Start  Principle of Direct Contact  Principle of Reciprocal Relationship  Principle of Continuity
  16. 16. BASIC COORDINATING TECHNIQUES 1. Rules, Procedures and Policies 2. Planning 3. Hierarchy RULES, PROCEDURES AND POLICIES Standard policies, procedures and rules are laid down to cover all possible situations. PLANNING Planning ensures coordinated effort. Strategic planning does the task of relating the organization to the environment so as to reduce uncertainty and the need for strict coordination. Hierarchy It is the oldest as well as simplest device for achieving coordination. By putting interdependent units under one boss, some coordination among their activities is ensured.
  17. 17. Importance of Coordination:  To harmonize conflicts  Total accomplishments  Emphasizes human relation  Retention of good personnel  Promotes stability, growth and prosperity of the organization  Efficiency and economy “COORDINATION IS THE VERY ESSENCE OF MANAGEMENT !!!”
  18. 18. Thank YOU