The document discusses the concept of controlling in management. It states that controlling is a six-step process that involves setting performance standards, monitoring performance, comparing performance to standards, taking corrective actions, and using preventative methods like coaching. The document also discusses different types of controls like feedforward, concurrent and feedback controls; advantages and limitations of controls; and approaches to quality assurance like structure, process and outcome approaches.

1. CONTROLING
Prepared By ;Mrs Bemina J A
Assistant Professor
ESIC College of Nursing

2.  Control is a fundamental managerial function of a
manager which is concerned with securing good
individual performance at a desirable level.
 Control conforms to the planning as both have the same
features of unity, continuity, flexibility and
pervasiveness.
 Controlling is a six-step process that involves several
systematic approaches to ensure performance standards
are met in the most efficient way possible.

3.  Controlling or evaluating is an on-going function of
management which occurs during planning, organizing,
and directing activities.
 The controlling process opens opportunities for
improvement and comparing performance against set
standard.

4.  Continuous process.
 Management process.
 Embedded in each level of organizational hierarchy.
 Forward looking.
 Closely linked with planning.
 A tool for achieving organizational activities.
 Should be objective
 Should be reliable
 Should be sensitive
 Comprehensibility. Controls must be simple and easy to understand
 Accuracy
 Economic feasibility.
 Availability of information when needed.
 Integration into established processes.
 Acceptance by employees.
 A focus on critical points.

5.  1. Establish performance standards.
Performance standards give employees an idea of what is expected of them and tells
them how you assess their performance. This is key to maintain management control.
 2. Conduct a job analysis and create a job description for each position within the
company. Give feedback regularly and give annual performance appraisals. This makes
the employee aware of her individual strengths and weaknesses.
 3.Monitor and measure performance. Draw up a new business plan and assess current
performance against expectations. Refocus the efforts of managers, employees and
stakeholders as needed.
 4. Compare your measured performance against established standards. If
anticipated performance is below average, take preventive corrective actions to ensure
compliance to specified performance standards before a problem occurs.
 5. Take corrective action.
This is often a difficult aspect of the controlling function of management. When
problems arise, handle the situations fast and efficiently. Ignoring a challenging situation
only makes things worse.
 6. Practice preventative methods like coaching in order to avoid corrective action.
Coaching allows for consistent feedback from management. It also helps train
employees on a daily basis and eliminates the need for severe corrective action except in
extreme circumstances.

6.  Evaluation ensures that quality nursing care is provided.
 It allows for the setting of sensible objectives and ensures
compliance with them.
 It provides standards for establishing comparisons.
 It promotes visibility and a means for employees to monitor
their own performance.
 It highlights problems related to quality care and determines
the areas that require priority attention.
 It provides an indication of the costs of poor quality.
 It justifies the use resources.
 It provides feedback for improvement.

7.  The evaluation must be based on the behavioral standards of
performance which the position requires.
 The evaluation should have enough time to observe employee’s
behavior.
 The employee should be given a copy of the job description,
performance standards, and evaluation conference.
 The employee’s performance appraisal should include both
satisfactory and unsatisfactory results with specific behavioral
instances to exemplify these evaluative comments.
 Areas needing improvement must be prioritized to help the
worker upgrade his/her performance.
 The evaluation conference should be scheduled and conducted
at a convenient time for the rater and the employee.
 The evaluation report and conference should be structured in
such a way that is perceived and accepted positively as a means
of improving job description.

8.  1. Critical Few
 2. Point of Control
 3. Self-control or discipline
Critical Few
Also known as Pareto's Principle vital few and trivial many In Juran's initial work he
identified 20 percent of the defects causing 80 percent of the problems.
Project Managers know that 20 percent of the work (the first 10 percent and the last 10
percent) consume 80 percent of your time and resources.
The value of the Pareto Principle for a manager is that it reminds you to focus on the 20
percent that matters.
Of the things you do during your day, only 20 percent really matter.
Those 20 percent produce 80 percent of your results.
Identify and focus on those things.
Point of Control
They are the points at which you are empowered to perform some action with a high
degree of assurance of success.

9.  1. Physical resources
 2. Human resources
 3. Information resources
 4. Financial resources

10.  1. Setting standards
 2. Evaluating performance
 3. Taking corrective actions

11.  Feedforward,
 Concurrent, and
 Feedback.

12.  Focuses on the regulation of inputs (human, material, and
financial resources that flow into the organization) to ensure
that they meet the standards necessary for the
transformation process.
 Feed forward controls are desirable because they allow
management to prevent problems rather than having to
cure them later.
 Unfortunately, these control require timely and accurate
information that is often difficult to develop.
 Feed forward control also is sometimes called preliminary
control, pre control, preventive control, or steering
control.

13.  Concurrent control takes place while an activity is in progress.
 It involves the regulation of ongoing activities that are part of
transformation process to ensure that they conform to
organizational standards.
 Concurrent control is designed to ensure that employee work
activities produce the correct results.
 Since concurrent control involves regulating ongoing tasks, it
requires a through understanding of the specific tasks involved
and their relationship to the desired and product.
 Concurrent control sometimes is called screening or yes-no
control, because it often involves checkpoints at which
determinations are made about whether to continue progress,
take corrective action, or stop work altogether on products or
services.

14.  This type of control focuses on the outputs of the organization after transformation is
complete.
 Sometimes called post action or output control, fulfils a number of important functions.
 For one thing, it often is used when feed forward and concurrent controls are not feasible
or are to costly.
 Sometimes, feedback is the only viable type of control available.
 Moreover, feedback has two advantages over feed forward and concurrent control.
 First, feedback provides managers with meaningful information on how effective its
planning effort was.
 If feedback indicates little variance between standard and actual performance, this is
evidence that planning was generally on target.
 If the deviation is great, a manager can use this information when formulating new plans
to make them more effective.
 Second, feedback control can enhance employees motivation.
 The major drawback of this type of control is that, the time the manager has the
information and if there is significant problem the damage is already done.

15.  ADVANTAGES OF CONTROL
• Insurance value of control.
• Basis for future actions
• Acts as indicators for managerial weakness
• Facility of co-ordination
 LIMITATIONS OF CONTROL
• Lack of satisfactory standards
• Imperfection in measurements
• Limitations of corrective actions
• Human reaction to control


16.  1.Establish and specify Criteria
 2. Performance Monitor & Actual Performance
of Nursing Care Services
 3.Compare performance with standards, criteria to
determine deviations
 4.Enact Remedial measures or steps to correct
deviations

17.  Time -deadlines
 Financial -budgeting
 Operation
 good services &quality, inventory
 Statistical process control if production operations
have been performed accurately

18.  Nursing Rounds
 Quality Assurance
 Nursing Audit

19.  Is a process of evaluation that is applied to the health
care system and the provision of healthcare services by
health workers
 TQM & CQI (continuous quality improvement)
 Customer satisfaction

20.  The primary purpose of QA programs in nursing is to
measure and improve the quality of nursing delivery in
the agency.
 The patient is the best and sometimes the only judge of
the interpersonal aspects of care, like empathy,
communication, room & food services.
 Patient satisfaction is an essential goal of care.
 Patients attitude influence the degree of compliance to
the medical regimen

21. STRUCTURE APPROACH
PROCESS APPROACH
OUTCOME APPROACH

22.  Structure Approach
Includes physical setting, instrumentalities and conditions
through which nursing care is given such as the philosophy and
objectives, the building, organizational structure, financial
resources, and equipment.
 Process Approach
Includes the steps in the nursing process in compliance with
established standards of nursing practice.
 Outcome Approach
Identifies desirable changes in the patient’s health status such as
modification of symptoms, signs, knowledge, attitudes,
satisfaction, skill level, and compliance with the treatment
regimen

23.  1.Customer focus
 2.Identification of key processes to improve quality
 3.The use of quality tools and statistics
 4.Involvement of all people in problem solving

24.  1.All health professionals should collaborate in the effort to measure and improve care.
 2.Coordination is essential in planning a comprehensive quality assurance program
 3.Resource expenditure for quality assurance activities is appropriate
 4.There should be focus on critical factors such as functions and activities that promise
to yield the greatest health and financial benefit to reveal significant findings.
 5. Quality patient care is accurately evaluated through adequate documentation.
 6. The ability to achieve nursing objectives depends upon the optimal functioning of the
entire nursing process and its effective monitoring
 7. Feedback to practitioners is essentials to improve practice. It perpetuates good
performance and replaces unsatisfactory interventions with more effective methods.
 8. Peer pressure provides the impetus to effect prescribed changes based on the results of
assessments
 9. Reorganizations in the formal organizational structure may be required if assessment
reveal the need for a different pattern of healthcare.
 10.Collection and analysis of data should be utilized to motivate remedial action.

25.  Performance Evaluation focuses on the worker.
It asks questions about how well the worker satisfies
the requirements of his or her job within the
organization.
 Quality Assurance focuses on the care and service the
patient receives than on how well the professional
performs the duties that the position requires.

26.  Nursing audit
It is a detail review and evaluation of selected clinical
records by qualified professional personnel to
identify,examine,or verify the performance of certain
specified aspects of nursing care by using established
criteria
Nursing Audit Commitee
 A nursing audit is composed of a representative from all
levels of the nursing staff:
 A member of the training staff
 Supervising Nurse
 Head/Senior Nurse
 Staff Nurse

27.  Patient care audits may be concurrent or retrospective.
 Concurrent Audit
1.Is one in which patient care is observed and evaluated. It is given through:
2.A review of the patient’s charts while the patients are still confined in the
hospital.
3.Observation of the staff as patient care is given.
4.Inspection of patients and/or observation of the affects of patient care where
the focus is on the patient.
 Retrospective Audit
-Is one which patient care is evaluated through
A review of discharged patient’s charts;
Questionnaires sent to or interviews conducted on discharged patients.
 Peer Review
-Patient care audits may be done by peers (employees of the same profession,
rank, and setting) evaluating another’s job performance against accepted
standards.

28.  -One of the most publicized approaches to quality
control introduced by the Japanese.
 -A group of workers doing similar work who meet
regularly, voluntarily, on normal working time, under
the leadership of their supervisor, to identify, analyze
and solve work related problems and to recommend
solutions to management.

29.  The Nursing Staff in the unit is given a feedback on
the results of the quality assurance study.
 Positive Feedback reinforces desirable performance.
Consistent positive findings deserve a commendation
from the nursing service.
 Negative Feedbacks should tactfully be conveyed in a
face-to-face situation so that assessment results may
easily be clarified.

30.  Part of the control process is the periodic review of the
utilization of materials and supplies in the various
nursing units.
 Requisitions of and/or stocking a large number of
supplies and materials should be avoided to prevent
pilferage, misuse, or spoilage.

31.  Discipline strong commitment to the vision, philosophy, goals and
objectives of the institution.
 Laws that govern the practice of all professionals and their respective
Codes of Conduct.
 Understanding the rules and regulations of the agency.
 An atmosphere of mutual trust and confidence.
 Pressure from peers and organization.
 Disciplinary Approaches
 Problem Solving
 Disciplinary Action
 Disciplinary Action (cont)
 Counseling and Oral Warning
 Written Warning
 Suspension
 Dismissal

32.  Compare performance with standards,
 criteria to determine deviations
PERT
BENCHMARKING

33.  (PERT) is a project management tool used to
schedule, organize, and coordinate tasks within a
project
 It is basically a method to analyze the tasks involved in
completing a given project, especially the time needed
to complete each task, and to identify the minimum
time needed to complete the total project.
 OBJECTIVE
To facilitate decision making
To reduce both the time and cost required to complete
a project.

34. Personnel should already have a good understanding of
formal project management terminology, tools, and
techniques
PERT form template of equivalent tool (e.g.
software)
Create of project plan
Choose the most appropriate scheduling method
Select and organize a team to perform project tasks.

35.  Identify the specific activities and milestones.
 Determine the proper sequence of the activities.
 Construct a network diagram Estimate the time required for each activity.
 Determine the critical path.
 Update the PERT chart as the project progresses
 IDENTIFY THE SPECIFIC ACTIVITIES AND MILESTONES.
The activities are the tasks required to complete a project.
The milestones are the events marking the beginning and the end of one or more activities.
It is helpful to list the tasks in a table that in later steps can be expanded to include information on
sequence and duration.
 DETERMINE THE PROPER SEQUENCE OF THE ACTIVITIES
This step may be combined with the activity identification step since the activity sequence is
evident for some tasks.
Other tasks may require more analysis to determine the exact order in which they must be
performed.
 CONSTRUCT A NETWORK DIAGRAM.
Using the activity sequence information, a network diagram can be drawn showing the sequence of
the serial and parallel activities.
Each activity represents a node in the network, and the arrows represent the relation between
activities.
Software packages simplify this step by automatically converting tabular activity information into
a network diagram.

36.  ESTIMATE THE TIME REQUIRED FOR EACH ACTIVITY
Weeks are a commonly used unit of time for activity completion, but any consistent
unit of time can be used. A distinguishing feature of PERT is its ability to deal with
uncertainty in activity completion time.
For each activity, the model usually includes four time estimates: Optimistic time
Most likely time
Pessimistic time
Expected time
 TIMES
Optimistic time
It is generally the shortest time in which the activity can be completed.
Most likely time – the completion time having the highest probability. Note that this
time is different from the expected time.
Pessimistic time – the longest time that an activity might require.
Expected time = (Optimistic + 4 x Most likely + Pessimistic) / 6
This expected time may be displayed on the network diagram.

37.  DETERMINE THE CRITICAL PATH.
The critical path is determined by adding the times for the
activities in each sequence and determining the longest path in
the project.
The critical path determines the total calendar time required
for the project.
 UPDATE THE PERT CHART AS THE PROJECT
PROGRESSES.
Make adjustments in the PERT chart as the project progresses.
As the project unfolds, the estimated times can be replaced
with actual times.
In cases where there are delays, additional resources may be
needed to stay on schedule and the PERT chart may be modified
to reflect the new situation.

38.  PERT is useful because it provides the following
information:
Expected project completion time;
Probability of completion before a specified date
The critical path activities that directly impact the
completion time;
The activities that have slack time and that can be
lend resources to critical path activities;
Activity start and end date.

39.  A Gantt chart is a type of bar chart that illustrates a project schedule,
named after its inventor,
 Henry Gantt (1861–1919), who designed such a chart around the years
1910–1915.
 Modern Gantt charts also show the dependency relationships between
activities and current schedule status.
DEFINITION
A Gantt chart is a type of bar chart that illustrates a project schedule.
This chart lists the tasks to be performed on the vertical axis, and time
intervals on the horizontal axis.
The width of the horizontal bars in the graph shows the duration of
each activity.
Gantt charts illustrate the start and finish dates of the terminal
elements and summary elements of a project

40.  Task list: Runs vertically down the left of the Gantt chart to describe
project work and may be organized into groups and subgroups
 Timeline: Runs horizontally across the top of the Gantt chart and
shows months, weeks, days, and years
 Dateline: A vertical line that highlights the current date on the Gantt
chart
 Bars: Horizontal markers on the right side of the Gantt chart that
represent tasks and show progress, duration, and start and end dates
 Milestones: The diamonds that call out major events, dates, decisions,
and deliverables
 Dependencies: The lines that connect tasks that need to happen in a
certain order
 Progress: Shows how far along work is and may be indicated by %
Complete and/or bar shading
 Resource assigned: Indicates the person or team responsible for
completing a task

41.  To show the current schedule status
 To measure task duration in the project
 To represent cost, time and scope of the project
 A useful tool for planning and scheduling projects
 To plan how long a project should take
 Lays out the order in which the tasks need to be carried out
 Modern Gantt chart software provides dependencies
between tasks
 To monitor a project’s progress
 To visualize immediately what should have been achieved
at any point in time
 To assist in taking remedial action to bring the project back
on course , if required

42.  ADVANTAGES OF GANTT CHART
It helps in planning and monitoring the work of project
Time is explicitly expressed in the chart
All tasks are visible at a glance in relation to other
Deadlines are depicted in the chart
It organizes your thoughts.
It demonstrates that you know what you’re doing.
It (should) help you to set realistic time frames.
 DISADVANTAGES OF GANTT CHART
They can become extraordinarily complex.
The size of the bar does not indicate the amount of work
They need to be constantly updated.
Difficult to see on one sheet of paper.

43. INTRODUCTION
 Benchmarking is a process of finding what best practices are and then
proposing what performance should be in the future.
 The three principles of benchmarking are maintaining quality, customer
satisfaction and continuous improvement
DEFINITION
 It can be defined as a process for improving performance by constantly
identifying, understanding and adapting best practices and process followed
inside and outside the company and implementing the results.
 The main emphasis of benchmarking is not on “best performance” but on
improving a given business operation or a process by exploiting “best
practices”
 “ Benchmarking is an ongoing outreach activity; the goal of the outreach is
identification of the best operating practices that, when implemented, produce
superior performance” - Bogan and English , Benchmarking for best practices.
 Benchmark refers to a measure of best practice performance.
 Benchmarking is the systematic search for best practices, innovative ideas
and highly effective operating procedures. It measures performance against that
of the “ best-in-the-class” organization.

44.  STRATEGIC BENCHMARKING
 PERFORMANCE BENCHMARKING
 PROCESS BENCHMARKING
 FUNCTIONAL BENCHMARKING
 INTERNAL BENCHMARKING
 EXTERNAL BENCHMARKING
 INTERNATIONAL BECHMARKING

45.  It is used where businesses need to improve overall
performance by examining the long term strategies and
general approaches that have enabled high performers
to succeed.
 It involves considering high level aspects such as
core competencies.
 This type of benchmarking is suitable when the
company has to realign business strategies that have
become inappropriate.

46.  Also know as COMPETITIVE BENCHMARKING
It is used when organizations consider their positions
in relation to performance characteristics of key
products and services.
 Benchmarking partners are usually drawn from the
same sector.
 This type of benchmarking is suitable for assessing
relative levels of performance in key areas or activities
in comparison with others in the same sector to find
ways of closing gaps in performance.

47.  It is used by the organization when the focus is on
improving specific critical processes and operations
 Benchmarking partners are sought from best practice
organization and are drawn from the same sector.
 This type of benchmarking is suitable for achieving
improvements in key processes to obtain quick and
short term benefits.

48.  Also known as GENERIC BENCHMARKING
 It can lead the organization to innovation & dramatic
improvements.
 It is used when organizations look to benchmark
with partners drawn from different business sectors or
areas of activity.
 This type of benchmarking is suitable for improving
activities or services for which counterparts do not
exist.

49.  It involves seeking partners from within the same
organization & from business units located in different
regions.
 The main advantages are access to sensitive data &
information, availability of standardized.
 This type of benchmarking is suitable when several
business units within the same organization exemplify
good practice and management and want to spread this
expertise quickly throughout the organization.

50.  It involves analyzing outside organizations that are
known to be the best in the class.
 It provides opportunities of learning from those who
are at the “learning edge”.
 This type of benchmarking is suitable where
examples of good practices can be found in other
organization and there is a lack of good practices
within internal business units.

51.  This is used when the best practitioners are located
in other countries. This is due to globalization and
advances in information technology.
 There is a need for careful analysis & interpretation
due to national differences.
 This type of benchmarking is suitable where the aim
is to achieve world class status or simply because there
are insufficient “national” businesses against which to
benchmark.

52.  Benchmarking will not improve performance if the proper infrastructure for a total
quality program is not in place.
 The requirements are:-
Involve the employees who will ultimately use the information and improve the
process.
Relate process improvement to strategy and competitive positioning.
Define your own process before gathering data or you will be overwhelmed and will
not have the data to compare your process with.
Perceive benchmarking as an ongoing process. It is not a one time project with a finite
start and complete date.
 Expand the scope of the company studied. Confining the benchmarking firm to your
own area ,or industry , competitor is probably to narrow and approach in identifying
excellent performer
 Perceive benchmarking as a means to process improvement rather than then and in its
self.
 Set goals for closing the gap between what is existing process and what van be
benchmarked.
 Empower employees to achieve improvements that they identify and for which they
solve problems and develop action plans.
 Maintain momentum by avoiding the temptation to put study results and action plans
on the back burner. Credibility is achieved by quick and enthusiastic action.

53.  Benchmarking can be fraught with potential problems ranging
from simple misunderstanding to serious legal problems.
 In order to minimize problems it is strongly recommended to
follow the simple code of conduct scripted by the international
benchmarking clearing house.
 Legality
 Exchange
 Confidentiality
 Use of information
 Contact
 Preparation
 Completion
 Understanding

54. Dos Obtain management commitments
Obtain resource commitments
Follow code of conduct
Provide summary reports
Debrief as soon as possible
Be flexible
DON’TS
Have too broad a scope
Proceed without process modeling
Use questionnaires for “process”
Have separate implementation team
Design lengthy questionnaire
Give up!

57.  THERE ARE THREE TYPES OF COSTS
 VISIT COST:- these include hotel rooms, travel
costs , meals, token gift and lost labor time
 TANK COST:- the members of the benchmarking
team will be investigating time in researching problems
BENCHMARKING DATA BASED COSTS:-
organizations that institutionalized benchmarking into
their daily procedures find it is useful to create and
maintain a data base of best practices and the
companies associated with each best practice.

58.  Benchmarking is a tough process that needs a lot of
commitment to succeed.
 It is a time consuming and expensive.
 More often than not benchmarking processes end
with the “they are different from us” syndrome or
competitive sensitivity that prevents the free flow of
necessary information.

59.  Lack of management commitment and involvement
 Not applied to critical areas first
 Inadequate resources
 No involvement of the line organization.
 Scope not well defined.
 To many performance measures.
 Critical success factors & performance drivers not understood or
identified.
 Potential partners ignored
 Poorly designed questionnaires.
 Inappropriate data collection method.
 Too much & inconsistent data.
 Analysis paralysis; excess precision.
 Management resistance to change.
 No repeat benchmarking.

60.  Successful benchmarking requires the following :-
 Thorough understanding of one’s own processes.
 Emphasis on industry best practices.
 Selection of appropriate benchmarking partners and techniques.
 The benchmarking partner’s willingness to share information
 Maintaining confidentiality of critical information
 Involvement of management and employees in the analysis of best practices,
 Emphasis on practices and processes not on end results.
 Benchmarking should be a continuous process as the competition is always
changing.
 Commitment towards the adoption and implementation of best practices.
 Selection and empowerment of benchmarking teams.
 Willingness to change as per the findings of the benchmarking study.
 The adaptability of the practices should be tested and the implementation
results should be verified.
 Strict adherence to the benchmarking.

61.  Enact Remedial measures or steps to correct deviations
 Maybe done by changing the number of personnel,
training subordinates, minimizing resources or
increasing quality care.

62.  Control techniques may be broadly classified into two categories:-
• Traditional control techniques.
• Advance / Modern control techniques.
 Traditional Control Techniques:-
• Personal observation.
• Statistical reports and analysis.
• Break-even analysis.
• Budgetary control.
 Advance control techniques:-
• Self Control
• Management Audit.
• Programme Evaluation and Review Techniques (PERT).
• Critical Path Method (CPM).
• Management Information Systems (MIS).

63.  Personal Observation
Manager collect first hand information about the performance of the employees.
It also creates psychological pressure on the employees to improve their performance as they are
aware that they are being observed personally by the manager.
However, this technique is not to be effectively used in all kinds of jobs as it is very time consuming.
 Statistical Data
Statistical analysis involves collecting and scrutinizing every data sample in a set of items from
which samples can be drawn.
A sample, in statistics, is a representative selection drawn from a total population. Information is
presented in the form of tables, graphs, charts etc., it facilitates comparison of performance with the
standards laid and with previous years’ performance.
 Break even point analysis
A break-even analysis is an analysis to determine the point at which revenue received equals the costs
associated with receiving the revenue.
Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed
the BEP Operational Audit Operational auditing, in its broadest sense, is the regular and independent
appraisal, by a staff of internal auditors, of the accounting, financial, and other operations of a
business
 Budgetary Control
Budgetary control refers to how well managers utilize budgets to monitor and control costs and
operations in a given accounting period.

64.  (a) Return on Investment.
 (b) Ratio Analysis.
 (c) Responsibility Accounting.
 (d) Management Audit.
 (e) PERT and CPM.
 (f) Management Information System.

65.  Return on investment is very useful technique for
determining whether the capital invested in the
business has been effectively used or not for generating
reasonable amount of return.
 Return on Investment= (Net Income / Total Investment)
X 100
 It acts as an effective control device in measuring and
comparing the performance of departments.

66.  Ratio Analysis is a technique of analyzing the financial statements of a
business firm by computing different ratios.
(i) Liquidity Ratios: Liquidity ratios are calculated to know short term
financial position of business and its ability to pay short term liabilities.
(ii) Solvency Ratios: Solvency ratios are calculated to know long term
solvency of the business and its ability to pay its long term debts
(iii) Profitability Ratios: Profitability ratios like gross profit ratio, net
profit ratio, operating ratio, etc.
a. Gross Profit Ratio = Gross Profit/Net Sales × 100.
b. Net Profit Ratio = Net Profit/Net Sales x 100
(iv) Turnover Ratios: The various turnover ratios help in knowing
whether the resources are effectively used for increasing the efficiency
of operations of business or not.
Higher turnover indicates better utilization of resources.
Inventory Turnover Ratio = Cost of goods sold/Average Stock

67.  Under this system of accounting, various sections, departments or divisions of an
organisation are set up as ‘ Responsibility Centers’.
 Each centre has a head who is responsible for attaining the target of his centre. The
various responsibility centres are as follows:
 (i) Cost Centre: Cost centre, also known as expense centre, refers to a department of an
organisation whose manager is held responsible for the cost incurred in the centre but
not the revenues. For example, Production department of an organisation may be
classified as Cost Centre.
 (ii) Revenue Centre: A revenue centre refers to a department which is responsible for
generating revenues. For example, marketing department.
 (iii) Profit Centre: A profit centre refers to a department whose manager is responsible
for both cost and revenues. For example, Repair and Maintenance department.
 (iv) Investment Centre: An investment centre is responsible for profits as well as
investments made in the form of assets.
 For judging the performance of investment centre, return on investment (ROI) is
calculated and compared with similar data for previous years for one’s own centre as
well as other similar enterprises.
 It is also compared with current data of competing enterprises.

68.  Management Audit is a process of judging the overall
performance of an organization.
 It aims at reviewing the efficiency and effectiveness of
management and improving its future performance.
 Following are the main advantages of management audit:
(i) It identifies the deficiencies in the performance of management
functions.
(ii) It helps in improving coordination among the functions of
various departments.
(iii) It ensures required modification in the existing managerial
policies and techniques according to environmental changes.
(iv) The continuous monitoring of the performance of management
helps in improving control system.

69.  PERT (Programme Evaluation and Review Technique)
and CPM (Critical Path Method) are two important
techniques used in both planning and controlling.
 These techniques are used to compute the total
expected time needed to complete a project & it can
identify the bottleneck activities that have a critical
effect on the project completion date.
 Such techniques are mainly used in areas like
construction projects, aircraft manufacture, ship
building

70.  Management Information System (MIS) is a computer
based information system which provides accurate,
timely and up-to-date information to the managers for
taking various managerial decisions.
 Thus, it is an important communication tool as well as
an important control technique.
 It provides timely information to the managers so that
they can take appropriate corrective measures in case of
deviations from standards.

71.  http://www.managementstudyguide.com/ what-is-decision-making.htm
 http://www.managementstudyguide.com/ importance_of_delegation.htm
 Shabnam Masih. Essentials of Nursing Management. 2nd edition. Lotus Publishers 157-160
 Vati J (20113),principles and practice of nursing management and administration ,First edt,Jay Pee publishers , New
delhi : p 184-188
 Archibald & Villoria, "Network-Based Management Systems (PERT/CPM)," John Wiley & Sons, 1967
 Cagle, Ronald B. Blueprint for project recovery: a project management guide : the complete process for getting
derailed projects back on the track. New York : AMACOM, 2002
 Clet, Étienne and Henri-Pierre Maders. Comment manager un projet. 2nd ed. Paris: Éditions d'Organisation, 2005.
 Denis Lock, Managementul de proiect. Ed. CODECS, Bucureşti, 2000 DeWitte, "Manpower Leveling of PERT
Networks," Data Processing for Science/Engineering, March-April 1964
 RESEARCH STUDY Title: Application and impact of Gantt chart in task based team English learning
 Author :He Chen , School of Foreign Studies, Northwest University of Politics and Law, xi'an, 710122, (CHINA)
Results By using the Gantt chart they can conclude and analyze the progress and quality of learning, realize
the problems and shortcomings in learning, and summary solutions.
 RESEARCH REPORT Title: Application of PERT Technique in Health Programme Monitoring and Control
 Author: Susmit Jain, Indian Institute of Health Managment Research
 Results This technique helps in answering the expected time of completion of projects, identifying the jobs
and activities and their start and finish times, the effect of delay of certain activities, what resources are required at
various points of time, revising and rescheduling the projects and what additional resources are required, etc.