Management control involves ensuring actual activities conform to plans by verifying advancement of objectives and organizational efficiency. The document discusses various control methods managers can use, including financial statements, budgets, audits, and performance metrics. Control is an ongoing, feedback-based process aimed at monitoring performance and making adjustments to plans or operations as needed.

2.  Management Control is the process of ensuring that
actual activities conform to planned activities.
 In other words we can say it is the process oriented
to verify:
1) The advancement status of the planned
objectives, and
2) The efficacy and efficiency of the organization
through the analysis of the resources, costs and
proceeds.

3.  The process of controlling helps in :
1) Making plans effective.
2) Making sure that organizational activities are
consistent.
3) Making organizations effective.
4) Making organizations efficient.
5) Providing feedback on project status.
6) Aiding decision making.
Therefore controlling can be viewed as monitoring
performance against a plan and then making
adjustments either in the plan or in operations as
required.

4.  FEEDFORWARD CONTROLS:
Also called preliminary or preventive controls.
These attempt to identify and prevent deviations in
the standards before they occur.
Feedforward controls focus on human, material,
and financial resources within the organization.
 CONCURRENT CONTROLS
Concurrent control monitor ongoing employee activity
to ensure consistency with quality standards.
These controls rely on performance standards, rules,
and regulations for guiding employee tasks and
behaviors.

5. Their purpose is to ensure that work activities produce
the desired results.
o FEEDBACK CONTROLS
These involve reviewing information to determine
whether performance meets established standards.
INPUT PROCESSES OUTPUT

6. Establish
Standards
Measure
Performance
Does
Perform
ance
Match?
Take
Corrective
Action
Do
Nothing

7. • Standards are criteria against which results are
measured. They are norms to achieve the goals.
Standards are usually measured in terms of output.
They can also be measured in non-monetary terms
like loyalty, customer attraction, goodwill etc.
Some of the standards are as follows:
a). Time standards
b). Cost standards
c). Income standards
d). Market share
e). Productivity

8. •Measurement involves comparison between what is
accomplished and what was intended to be
accomplished.
• The measurement of actual performance must be in the
units similar to those of predetermined criterion. The unit
thus chosen be clear, well-defined and easily identified,
and should be uniform and homogenous throughout the
measurement process.
•Measurement of performance against standards should
ideally be done on a forward looking basis so that
deviations may be detected in advance of the
occurrence and avoided by appropriate actions.

9.  Deviation is the gap between actual performance
and the planned targets.
 There are two important points here :
1) Extent of deviation : means whether the deviation
is positive or negative or whether the actual
performance is in conformity with the planned
performance.
2) Cause of Deviation :
• Erroneous Planning
• Coordination loosens
• Defective implementation of plans
• Ineffective supervision and communication etc.

10. • Controlling to be effective, should involve not only the
detection of lapses but also probe into the failure
spots, fixation of responsibility for the failures at the right
quarters, recommendation of the best possible steps to
correct them.
• The primary objective should be avoidance of such
failures in future.
• The required corrective action can be determined
from the qualified data as per the standards laid out
and the performance evaluation already done.
• Corrective action must be well balanced, avoiding
over controlling and at the same time letting not things
to drift.

11. TO
CREATE
BETTER
QUALITY
TO
COPE
WITH
CHANGE
TO
CREATE
FASTER
CYCLES
TO
ADD
VALUE
TO
FACILITATE
DELEGATI
ON
AND
TEAMWOR
K

12. selecting strategic
control points
Identifying strategic
control points
Identifying key
performance areas

13. •These areas involve major
organizational activities
that must function
effectively for entire
organization to succeed.
•In today’s organization
many KRAs are cross
functional.
Key
Performance
Areas
Or
Key Result
Areas

14. •These are critical points in the
system where monitoring or
information collection should
occur.
Strategic control
points
•Focus on the most significant
elements in a given
operation.
•Focus on places where
changes occurs in a
productive process.
Methods of
selecting
strategic control
points

15. • Controlling has two basic purposes:
1) It facilitates co-ordination.
2) It helps in planning.
• Controlling is an end function.
• It is a pervasive function.
• It facilitates coping with the environment.
• Control is people-oriented.
• Controlling is a forward looking process.

16. • It is a dynamic and continuous process.
• It is a corrective action.
• Controlling is an exercise at all levels in the
management hierarchy.
• It guides behavior of the people and use of resources
and facilities for carrying out different activities or
operations.

17.  Managers use a series of control methods and
systems to deal with the differing problems and
elements of their organizations. These methods are
capable of taking many forms and can be
intended for various groups.
 Control techniques provide managers with the
type and amount of information they need to
measure and monitor performance. The
information from various controls must be tailored
to a specific management
level, department, unit, or operation.

18.  These have a special prominence as money is easy to
measure and tally.
 Financial statements are used to track the monetary
value of goods and services into and out of the
organization.
 They help monitor 3 major financial conditions of an
organization:
a) LIQUIDITY
b) GENERAL FINANCIAL CONDITION
c) PROFITABILITY
Financial statements could be prepared yearly,
quarterly or monthly. They include income statements,
balance sheets, and cash flow statements.

19.  Balance Sheet: This tells how the organization
stacks up financially at a particular point in time. It
is the description of the organization in terms of its
assets, liabilities and net worth.
 Income Statement: This summarizes the company’s
financial performance over a given interval of
time.
 Cash Flow Statements: This also known as
Statement of Sources and Uses of Funds. These
show where have cash or funds come from during
the year, and where have they been applied.

20.  Budgets are formal quantitative statements of the
resources set aside for carrying out planned
activities over given periods of time. Thus they are
widely used means for planning and controlling
activities.
 They establish clear and unambiguous standards of
performance for a set time period. At stated time
intervals actual performance is compared directly
with the budget and thus deviations can easily and
quickly detected and acted upon.
 Budgetary controls are used in various responsibility
centers, which is any organizational function or unit
headed by a manager who is responsible for the
activities of that unit.

21.  All responsibility centers use resources i.e. inputs or
costs, to produce outputs or revenues.
 The decision usually depends on the activity
performed by the organizational unit and on the
manner in which inputs and outputs are measured
by the control system.
REVENUE
CENTERS
EXPENSE
CENTERS
PROFIT
CENTERS
INVESTM
-ENT
CENTERS

22.  It is used for validating the honesty and fairness of
financial statements, providing a critical basis for
management decisions, etc.,.
 Two types of auditing are used.
1) External Auditing : A verification process involving
the independent appraisal of the organization’s
financial accounts and statements. Assets and
liabilities are verified and financial reports are
checked for completeness and accuracy.
2) Internal Auditing : It is carried out by the members
of the organization only. This provides a
reasonable assurance that the assets are being
properly safeguarded and all records are being
kept reliably.

23.  Marketing controls help monitor progress towards the
goals for customer satisfaction with products and
services, prices, and delivery.
1) Market research: gathering data to assess customer
needs which is an information critical to an
organization's success.
2) Test marketing: a small-scale product marketing to
assess customer acceptance. It makes use of surveys
and focus groups.
3) Marketing statistics: measure performance by
compiling data and analyzing results. It makes use
of marketing ratios, which measure profitability and
market shares, as well as sales quotas, which
measure progress towards sales goals and assist with
inventory controls.

24.  It means to measure the cost and value of the
people (i.e. of employees , managers, etc.,) in the
organization.
 It helps managers regulate the quality of newly hired
personnel, as well as monitor current employees'
developments and daily performances.
 Managers can help control workers' behavior in the
organization by directing workers' performances
towards well defined goals by making sure that the
goals are clearly set and understood.
 Common control types include performance
appraisals, disciplinary programs, observations, and
training and development assessments.

25.  It is the way the organization transforms inputs –
labor, money, etc.,- into outputs – goods or
services.
 It refers to the complex set of management
activities involved in
planning, organizing, leading, and controlling an
organization’s operations.
INPUT
(Resources)
HUMAN
CAPITAL
LAND
TECHNOLOGY
TRANSFORMATI-
ON
OR
CONVERSION
PROCESS
FEEDBACK
EXTERNAL
ENVIRONMENT
OUTPUT
GOODS
SERVICES
OTHERS

26.  The feedback loop represents the information
gained by people at an organization during the
entire process.
 This information makes it possible for them to
monitor the system’s performance and decide
whether corrective changes are needed.
 Thus it can be said that operations management is
important for it can help improve productivity and
also help organization’s meet customers’
competitive priorities.

27.  A PERT chart is a graphic
representation of a project’s
schedule, showing the
sequence of tasks, which tasks
can be performed
simultaneously.
 The chart can be constructed
with a variety of attributes, such
as earliest and latest start dates
for each task, earliest and latest
finish dates for each task, and
slack time between tasks.
 The chart allows a team to
avoid unrealistic timetables and
schedule expectations, to help
identify and shorten tasks that
are bottlenecks, and to focus
attention on most critical tasks.
D
1
D
2
D
3
D
4
D
5
D6

28.  The Critical Path Method or Critical Path Analysis, is a
mathematically based algorithm for scheduling a set
of project activities.
 It is an important tool for effective project
management commonly used with all forms of
projects, including construction, software
development, research projects, product
development, engineering, and plant maintenance.
 Any project with interdependent activities can apply
this method of scheduling.

29.  Only with accurate and timely information can a
manager monitor progress towards their goal and
turn plans into reality.
 Information system enables managers to control
how they do business.
 The computer plays a vital part in the control of
business operation.
 Information it self as a valuable asset one that
needs to be carefully managed and protected.

30. Information
quality
Information
timeliness
Information
quantity
Information
relevance

31. *EDP: electronic data- processing - computerized
data- processing and information management
, including report standardization for operating
manager.
*CBIS: computer based information systems -
information system that goes beyond the mere
standardization of data to aid in the planning
process..
*DSS: decision support system - computer support
system, computer system accessible to nonspecialists
to assist in planning and decision.

32.  Operational control : an MIS for operational control
must provide highly accurate and detail information on
a daily or weekly basis. The MIS must provide a high
volume of timely and detailed information derived from
daily operation.
 Middle management : the type of information middle
level managers require consist of aggregate data from
within the organization as well as from resources outside
the organization .
 Top management : the MIS must provide information for
strategic planning and management control. For
strategic planning, the external sources of information
on economic conditions, technological developments,
the actions of competitors assume paramount
importance.

33.  Planning and controlling are two separate functions
of management, yet closely related. Without
planning, controlling activities becomes baseless and
without controlling, planning becomes a meaningless
exercise. In the absence of controlling, no purpose
can be served by.
 Thus it is rightly said Planning precedes controlling and
controlling succeeds planning. Activities are put on
rails by planning and they are kept at right place
through controlling.
 They work on Systems Approach which is as follows
Planning → Results → Corrective Action

34. CONTEMPORARY ISSUES IN
CONTROL
• Cross Cultural Differences
• Workplace Concerns
1)Workplace privacy versus workplace monitoring.
2)Employee theft.
3)Workplace violence.
• Customer Interactions
• Corporate Governance