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RISHI PRASHATH
617
MICHAEL AARON
634
MEMBERS
D.DHARSHAN
652
NAVEEN KUMAR
669
3
Controlling function of management
implies the measurement of
accomplishment against the standard
and the correction of deviations to
assure attainment of objectives
according to plans.
DEFINITION
4
What is CONTROL PROCESS
Controlling is one of the important functions of a
manager. In order to seek planned results from
the subordinates, a manager needs to exercise
effective control over the activities of the
subordinates. Controlling also ensures that an
organisations resources are being used effectively
and efficiently for the achievement of
predetermined goals. Controlling is, thus, a goal-
oriented function. 5
Managers at all levels of
management- top, middle and lower-need
to perform controlling functions to keep
a control over activities in their areas.
The controlling function finds out how
far actual performance deviates from
standards, analyses the causes of such
deviations and attempts to take
corrective actions based on the same.
This process helps in formulation of
future plans in the light of the problems
that were identified. 6
7
8
 Standards are the criteria against
which actual performance would be
measured.
 Standards can be set in both
quantitative as well as qualitative
terms.
 Standards set in terms of cost to be
incurred, revenue to be earned,
product units to be produced and
sold, time to be spent in performing a
task, all represents quantitative
standards.
9
 Improving goodwill and motivation level of
employees are examples of qualitative
standards.
 A manager should try to set standards in precise
quantitative terms as this would make their
comparison with actual performance much
easier.
 Whenever qualitative standards are set, an
effort must be made to define them in a manner
that would make their measurement easier.
 Standards should be flexible enough to be
modified whenever required to take place in
internal and external environment business. 10
11
◎ Performance should be measured in an
objective and reliable manner.
◎ There are several techniques for measurement
of performance. These include personal
observation, sample checking, performance
reports, etc.
◎ It is believed that measurement should be
done after the task is completed but
measurement of work should be done during
the performance.
◎ Measurement of performance of an employee
may require preparation of performance
report by his superior.
12
◎ In small organisation each piece produced
may be checked to ensure that it conforms to
quality specifications laid down for the
product.
◎ In large organisation certain pieces are
checked at random for quality. This is
known as sample checking.
13
3. Comparing
Actual
Performance with
Standards
◎ This step involves comparison of
actual performance with the
standard.
◎ Such comparison will reveal the
deviation between actual and
desired results.
15
◎ Comparison becomes easier
when standards are set in
quantitative terms.
◎ For instance, performance of
a worker in terms of units
produced in a week can be
easily measured against the
standard output for the
week.
16
17
 It is, important to determine the acceptable
range of deviations.
 Deviations in key areas of business need to be
attended more urgently as compared to
insignificant areas.
 Critical point control and management by
exception should be used by a manager in
this regard.
 Critical Point Control: It is neither
economical nor easy to keep a check on each
and every activity in an organisation. Control
should, therefore, focus on key result areas
(KRAs) which are critical to the success of
an organisation. 18
◎ Management by Exception: Is an
important principle of management control.
◎ Only significant deviations which go
beyond the permissible limit should be
brought to the notice of management.
◎ After identifying the deviations that
demand managerial attention, these
deviations need to be analysed for their
causes. Deviations may have multiple
causes for their origin.
◎ It is necessary to identify the exact
cause(s) of deviations, failing which, an
appropriate corrective action might not be
possible. 19
20
◎ The final step in the controlling process
is taking corrective action.
◎ No corrective action is required when
the deviations are within acceptable
limits.
21
◎ When the deviations go beyond the
acceptable range, especially in the
important areas, it demands
immediate managerial attention so
that deviations do not occur again
and standards are accomplished.
◎ In case the deviation cannot be
corrected through managerial
action, the standards may have to
be revised.
22
23
CONCLUSION:
Controlling is not the
last function of management. It brings
back the management cycle back to the
planning function. It helps in
formulation of future plans in the light
of the problems identified in the past
and, thus, helps in better planning in
the future periods.
24
25

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Control process ppt

  • 1.
  • 2. 2
  • 4. Controlling function of management implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans. DEFINITION 4
  • 5. What is CONTROL PROCESS Controlling is one of the important functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over the activities of the subordinates. Controlling also ensures that an organisations resources are being used effectively and efficiently for the achievement of predetermined goals. Controlling is, thus, a goal- oriented function. 5
  • 6. Managers at all levels of management- top, middle and lower-need to perform controlling functions to keep a control over activities in their areas. The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same. This process helps in formulation of future plans in the light of the problems that were identified. 6
  • 7. 7
  • 8. 8
  • 9.  Standards are the criteria against which actual performance would be measured.  Standards can be set in both quantitative as well as qualitative terms.  Standards set in terms of cost to be incurred, revenue to be earned, product units to be produced and sold, time to be spent in performing a task, all represents quantitative standards. 9
  • 10.  Improving goodwill and motivation level of employees are examples of qualitative standards.  A manager should try to set standards in precise quantitative terms as this would make their comparison with actual performance much easier.  Whenever qualitative standards are set, an effort must be made to define them in a manner that would make their measurement easier.  Standards should be flexible enough to be modified whenever required to take place in internal and external environment business. 10
  • 11. 11
  • 12. ◎ Performance should be measured in an objective and reliable manner. ◎ There are several techniques for measurement of performance. These include personal observation, sample checking, performance reports, etc. ◎ It is believed that measurement should be done after the task is completed but measurement of work should be done during the performance. ◎ Measurement of performance of an employee may require preparation of performance report by his superior. 12
  • 13. ◎ In small organisation each piece produced may be checked to ensure that it conforms to quality specifications laid down for the product. ◎ In large organisation certain pieces are checked at random for quality. This is known as sample checking. 13
  • 15. ◎ This step involves comparison of actual performance with the standard. ◎ Such comparison will reveal the deviation between actual and desired results. 15
  • 16. ◎ Comparison becomes easier when standards are set in quantitative terms. ◎ For instance, performance of a worker in terms of units produced in a week can be easily measured against the standard output for the week. 16
  • 17. 17
  • 18.  It is, important to determine the acceptable range of deviations.  Deviations in key areas of business need to be attended more urgently as compared to insignificant areas.  Critical point control and management by exception should be used by a manager in this regard.  Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. 18
  • 19. ◎ Management by Exception: Is an important principle of management control. ◎ Only significant deviations which go beyond the permissible limit should be brought to the notice of management. ◎ After identifying the deviations that demand managerial attention, these deviations need to be analysed for their causes. Deviations may have multiple causes for their origin. ◎ It is necessary to identify the exact cause(s) of deviations, failing which, an appropriate corrective action might not be possible. 19
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  • 21. ◎ The final step in the controlling process is taking corrective action. ◎ No corrective action is required when the deviations are within acceptable limits. 21
  • 22. ◎ When the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished. ◎ In case the deviation cannot be corrected through managerial action, the standards may have to be revised. 22
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  • 24. CONCLUSION: Controlling is not the last function of management. It brings back the management cycle back to the planning function. It helps in formulation of future plans in the light of the problems identified in the past and, thus, helps in better planning in the future periods. 24
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