2.
Controlling refers to the process of measurement of
performance according to standards, measuring
deviations and taking corrective action to achieve
predetermined goals. In order to seek results,
manager must exercise effective control over the
workers
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Concept of controlling
3.
“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
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Definition
5.
Goal – oriented process
Pervasive
Continuous
Both a backward looking as well as a forward
looking function
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Nature of controlling
6.
Accomplishing organizational goal
Judging accuracy of standards
Making efficient use of resources
Improving employees motivation
Ensuring order and discipline
Facilitating coordination in action
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Importance of controlling
7.
Difficulty in setting quantitative standards
Little control on external factors
Resistance from employees
Costly affair
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Limitation of controlling
10.
Planning and controlling are inseparable twins of
management
They are interrelated and interdependent function of
management
Without planning there lies no basis for controlling and
vice versa
Planning is the base of controlling functions
Planning without controlling is meaningless
Planning is a thinking process while controlling is an
executive function
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Planning and Controlling are interrelated and
interdependent
11.
Planning based on facts makes controlling easier and
effective
Controlling improves future planning by providing
information derived past experiences
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Planning and Controlling are interrelated
and interdependent
12.
Planning is a forward-looking function
Controlling is a backward- looking function
Planning is a backward looing function
Controlling is a forward-looking function
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Both are forward-looking and
backward-looking functions
13.
Setting performance standards
Measurement of actual performance
Comparing actual performance with standards
Analyzing deviations
Taking corrective action
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Process of Controlling
14. Standards are the criteria, against which actual
performance would be measured. These serve as
benchmarks, towards which an organization staves
to work
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
1.Setting performance
standards
Functional areas Standards used
Production Quality,quanity, cost, individual job
Marketing Sales volume, sales expenses,
advertising expenditure ,sales person
performance
Human resource Labor relations, labor turnover,labour
absenteeism
Finance and accounting Capital expenditure, inventories , flow
of capital ,liquidity
15.
Once the standards are fixed, the next step is to
measure the actual performance. Generally, it is
conducted by the managers to analysis the overall
efficiency level of the employees. Wile measuring the
performance, objective and reliable methods should
be used, such as sample checking, preparing reports,
personal observations, etc.,
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
2. Measurement of
Actual performance
16.
This step involves comparison of actual performance
with the standard. Such comparison helps in
revealing the deviations between actual and desired
results. Comparison becomes easier when standards
are set in quantitative terms
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
3.Comparing Actual
performance with standards
17.
Under this step, deviations in key areas of business
need to be attended on urgent basis as compared to
deviations in certain insignificant areas. There is
need to determine the acceptable range of deviations
in all operational areas. Following points should be
kept in mind , while analyzing deviations ….
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
4.Analyzing deviations
18.
Critical point control
According to this principle , control system should
first focus on Key Result Areas KRAs, which are
critical to the success of the organization. It is
because, it is not possible to keep a check on all the
activities of the enterprise. Therefore , if anything
goes wrong at the critical points or key areas,
immediate action should be taken.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
19.
Management/ control by exception
It suggests that, if manager tries
to control everything, he may end up in controlling
nothing.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
20.
It saves time and effort of the managers as they deal
with major deviations only .
There is better utilization of managerial talents
It facilitates delegation of authority and increases
morale, when routine problems are left to the
subordinates
Timely action help to keep the organization on the
right track.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Advantages of Critical Point
Control and Management by
Exception
21.
This is the final step in which manger takes
corrective measures to bring back everything on
track in the organization i.e., according to set plans,
corrections are required in KRAs, witch are cortical
to the success of the organization ,or, in areas where
deviations go beyond the permissible limits..
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
5.Taking corrective action
22.
Cause of deviation Corrective action to be taken
Defective material Change the quality specilication of
materials
Defective machinery Repair/replacement f machinery
Defective process Modify the exiting process
Defective physical conditions Improve the physical conditions of
work
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
