Controlling is one of the four main functions of management and involves measuring performance, comparing it to standards, and taking corrective action. Managers use various control tools and techniques including objectives and standards, accurate and timely measurement, comparison of actual performance to objectives, corrective action, management by exception, and feedforward, concurrent, and feedback controls. Controls can be internal through self-discipline or external through supervision, policies, budgets, and other administrative systems. Quality control, total quality management, continuous improvement, control charts, and techniques like Six Sigma and Gantt charts are important control methods. Financial ratios and balanced scorecards also help managers exercise strategic control.

1. Controls
and
Control
System
How and Why do
Managers use the
control process
Controlling is one og the four
functions of management
Controlling is the process of
measuring performance and
taking action to ensure desired
results
After – action review is a
structured review of lessons
learned and results accomplished
through a completed project ,task
force assignment , or operation
Types of controls used
by managers
Useful control
tools and techiques
Control begins with
objectives and standards
An Output standard
measures performance
results in term of
quantity,quality,cost,or time
An Input standard
measures work efforts that
go into a performance task
Control measures actual
performance
Accurate and timely
measurement is
essentialin order to spot
differences between what
is really taking place and
what was originally
planned
Control compares results with
objectives and standards
The control equation is a
valuable tool . identifying the
need for action can point you
in two possible directions
When actual is less than
desired
When actual is more than
desired
Control takes corrective
action as needed
Management by
exception
Focuses attention on
differences btween actual
and desired performance
Managers use feedforward ,concurrent,
and feedback controls
Feedforward ( preliminary controls)
control ensures clear direction and needes
resources before the work begins
Concurrent control (Steering controls )
focuses on what happens during the work
process
Feedback control (post –action controls )
takes place after completing an action
Managers use both internal and external controls
Internal control or self-control occurs as people
exercise self-discipline in fulfilling job
expectations
External control occurs through direct
supervision or administrative systems,to structure
situation so that things happen as planned
Bureaucratic control influences behavior
through authority ,policies,procedures,job
descriptions,budgets,and day-to-day supervision
Clan control influences
behavior through social
norms and peer
expectations
Market control is
essentially the influence of
market competition on the
behavior of organizations
and their members
Managing by objectives is a way to
integrate planning and controlling
Improvement objectives document
intentions to improve performance in a
specific way
Personal development objectives
document intentions to accomplish
personal growth, such as expanded job
knowledge or skills
Quality control is a
foundation of modern
management
Total quality management
(TMQ) commits to
qualityobjectives ,continouns
improvement,and doing
things right the first time
Continous improvement
involves always searching
for new ways to improve
work quality and
performance
Control charts are graphical
ways of displaying trends so
that exceptions to quality
standards can be identified
Six Sigma is a quality
standard of 3.4 defect or less
per million products or
service deliveries
Gantt charts and CPM/PERT are
used in project management and
control
Projects are one-time activities
with many component tasks that
must be completed in proper order
and according to budget
Project management makes sure
that activities required to
complete a project are planned
well and accomplished on time
A Gantt chart graphically
displays the sceduling of task
required to complete a project
CPM/PERT is a combination of
the critical path method and the
program evaluation and review
technique
The critical path is the pathway
from project start to conclusion
that involves activities with the
longest completion times
Inventory controls help
save costs
Inventory control ensures
that inventory is only big
enough to meet immediate
needs
The economic order
quantity method places
new orders when inventory
levels fall to predetermined
points
Just-in-time scheduling
(JIT) routes materials to
workstations just in time
for use
Breakeven analysis shows
reveneus will equal costs
The Brekeven point
occurs where reveneus just
equal costs
Breakeven analysis
perform what-if
calculations under
different reveneu and cost
conditions
Financial ratios
measure key areas of
financial performance
Business managers
should be able to
understand these
financial performance
measures :
 Liquidity
 Leverage
 Asset
management
 Profitability
Balanced scorecards
help top managers
exercise strategic
control
A Balanced
scorecards measures
performance on
financial,customer
service ,internal
process , and
innovation , and
learning goals