This document discusses key factors for effective management control from a graduate thesis presented at the Philippine Christian University. It identifies four key factors: 1) Planning - control requires setting objectives and plans to evaluate implementation; 2) Action - managers must take timely action to provide guidelines, address deviations, and take corrective steps; 3) Delegation of Authority - controlling requires authority to evaluate performance and make changes; and 4) Prompt Flow of Information - there must be timely upward and downward communication of performance and recommendations to enable control. The document provides details on each of these factors and why they are important for effective management control.

1. PHILIPPINE CHRISTIAN UNIVERSITY
1648 Taft Ave, Malate, Manila, 1004 Metro Manila
Graduate School of Business and Management
ERWIN S. COLIYAT
Masters in Management major in Engineering Management
UNVEILING THE KEY FACTORS
OF EFFECTIVE MANAGEMENT CONTROL

2. ▪ It is the duty of the manager to improve the effectiveness of
organization’s control system.
▪ Controlling is the last steps of management where how the
implemented plan is working is assessed and evasive actions are
taken.
▪ Control system cannot operate in isolation.
▪ A number of other functions are also requires to be performed for
making be control effective.
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EFFECTIVE CONTROLS

3. KEY FACTORS OF
EFFECTIVE CONTROLS
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1. Planning
2. Action
3. Delegation of Authority
4. Prompt Flow of Information

4. 4
1. PLANNING
❑ Planning is the first prerequisite for making control effective.
❑ Control can be exercised only when objectives are set and plans
will be effective only when they are properly implemented.
Control cannot be exercised without planning. Planning must
precede control. It is essential to plan first and then exercise
control for its implementation.
SETTING OF OBJECTIVES
APPROPRIATE COURSE
OF ACTION

5. 2. ACTION
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❑ Timely action on the part of the manager is essential for exercising control. Manager
should give proper guidelines to his subordinates for undertaking various functions.
❑ The deviations should be reported at the earliest. Any delay in their reporting will delay a
corrective action also. Manager should give instructions in such a way that whenever the
performance is below the standards’ then it will be reported to the appropriate authority.
❑ There should be a quick action to take remedial steps. There will be no use of reporting a
deviation if it is not corrected at the earliest.
❑ To make control effective manager should give proper guidelines for doing a work,
reporting a deviation and taking corrective action. In the absence of an action plan control
may not be exercised effectively.

6. 6
3. DELEGATION OF AUTHORITY
❑ Delegation of authority is essential for exercising control.
Controlling process involves evaluating performance, ascertaining
deviations and taking corrective measures. All these steps require
some kind of authority.

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3. DELEGATION OF AUTHORITY CONT.
❑ When we ask production manager to increase production by 20% in the
current year then he will require authority:
(a) To employ more workers;
(b) To give incentives to workers for improving their performance;
(c) To take disciplinary action against inefficient workers.
Unless otherwise proper authority is delegated no control will be possible, So
delegation of authority is a pre-requisite to control system.

8. 8
4. PROMPT FLOW OF INFORMATION
❑ There should be a proper feedback of information for exercising control.
❑ The performance of subordinates should reach the manager at the earliest. This will
enable him to take rectifying measures.
❑ The steps suggested for improving efficiency should also reach subordinates at the
earliest so that they are able to act upon the advice.
❑ The time factor is very important in reporting. If the reports of performance are delayed
then measures to improve it will also be late.
An effective control can be exercised only if flow of information both upward and
downward is prompt.

9. THANK YOU!