This document discusses various aspects of organizational control. It defines control as monitoring activities to ensure plans are followed and deviations are corrected. There are 4 steps to the control process: 1) establishing standards, 2) measuring performance, 3) comparing performance to standards, and 4) determining if corrective action is needed. Control occurs in different areas like physical, human, and financial resources. It also occurs at different levels like operations, financial, structural, and strategic. Effective control integrates planning, is flexible, accurate, timely, and objective.

1. Controlling
Group: C

2. Group Members:
Name & ID:
1. Sumitra Rani Nath - 6108
2. Jitu Mohajan - 0920113480 (Recourse)
3. Masum Mozumder - 6017
4. Iffat Jahan Noor - 6314
5. MD. Mezbaul Alom - 6134

3. CONTROL
Control is the process of monitoring activities to
ensure that they are being accomplished as planned
and of correcting any significant deviations.
According to Henry Fayol, “Control consists in
verifying whether everything occurs in conformity
with the plan adopted, the instructions issued and
the principles established ”.

4. STEPS IN THE CONTROL PROCESS
The control process has 4 steps:

5. STEPS IN THE CONTROL PROCESS
1. Establishing Standards: The first step in the control process is
establishing standards.
Control standards —are the plans or targets against which subsequent
performance will be compared.
• Control standards should be expressed in measurable terms.
• Control standards should be consistent with organizational goals.
• Control standards should be identifiable indicators of performance.
2. Measuring Performance: The second step in the control process is
measuring performance.
• Performance measurement is a constant, ongoing process.
• Measurements must be accurate enough to spot deviations.
• Without measurement, effective control is not possible.

6. STEPS IN THE CONTROL PROCESS
3. Comparing Performance Against Standards : The third step in the
control process is comparing measured performance against
established standards. The comparing step determines the degrees of
variation between actual performance and the standard.
4. Determining The Need For Corrective Action: The final step in the
control process is determining the need for corrective action. After
comparing performance against control standards, one of three
actions is appropriate:
• Maintain the status quo ( do nothing)
• Correct the deviation.
• Change the standard if it was set too high or too low.

7. THE PURPOSE OF CONTROL
Adapt to environmental change Limit the accumulation of error
Control helps the organization
Cope with organizational complexity Minimize costs

8. TYPES OF CONTROL
Organizations practice control in a number of different areas and at different
levels.
Control
Areas of Control Levels of Control
• Control of Physical Resources
• Control of Human Resources
• Control of Information Resources
• Financial Control
Strategic
Control
Structural
Control
Operations
Control
Financial
Control

9. Areas of Control
1. Control of Physical Resources: It includes
inventory management, Quality control, and
equipment control.
2. Control of Human Resources: It include
selection and placement, training and
development, compensation.
3. Control of Information Resources: Including
sales and marketing forecasting, environmental
analysis, and public relation.
4. Financial Control: It involves managing the
organization’s debt.

10. Levels of Control
1. Operations Control: It focuses on the processes the
organization uses to transform resources into product
and services.
2. Financial Control: It is concerned with the
organization’s financial resources.
3. Structural Control: It is concerned with how the
elements of the organization’s structure are serving
their intended purposes.
4. Strategic Control: It focuses on how effectively the
organization’s corporate, business and functional
strategies are succeeding to meet its goals and
objectives.

11. Operations Control
It focuses on the processes the organization uses to transform resources into products or
services. The three forms of operation control- preliminary, screening, and postaction-
occur at different points in relation to the transformation process used by the organization.
Preliminary control
Focus is on inputs
to the organizational
system
Inputs Transformation Outputs
Screening control
Focus is on how
inputs are being
transformed into
outputs
Postaction control
Focus is on outputs
from the organiza-
tional system
Feedback

12. Financial Control
Financial control is the control of financial resources as they flow into the organization, are
held by the organization and flow out of the organization. We examine the control provided
by budgets.
Budgetary Control:
A budget is a plan expressed in numerical terms. Organization establish budget for
work groups, department, division and the whole organization. Budget serve four
primary purposes:
• Help managers coordinate resources and projects,
• Help define the established standards for control,
• Provide guidelines about the organizations resources, &
Enable the organization to evaluate the performance of managers
and organizational units.

13. Other tools of financial control :
Although budgets are the most common means of financial control, other useful
tools are financial statements, ratio analysis and financial audits.
1. Financial Statements :
Financial statement is a profile of some aspect of an organization’s
financial circumstances.
- Balance sheet
• A listing of assets (current and fixed), liabilities (short- and long-
term), and stockholders’ equity at a specific point in time (typically,
year-ending) that summarizes the financial condition of the
organization.
- Income statement
• Summary of financial performance—revenues less expenses as net
income (i.e., profit or loss)—over a period of time, usually one year.

14. 2. Ratio Analysis:
The calculation of of one or more financial ratios to
assess some aspect of the organization’s financial
health.
3. Financial Audits:
Audit—an independent appraisal of an organization’s
accounting, financial, and operational systems.
• External audits—financial appraisals conducted
by experts who are not employees of the
organization to verify to external parties that the
organization’s financial and accounting procedures
are legal and proper.
• Internal audits—appraisals conducted by
employees of the organization to determine the
accuracy, efficiency, and appropriateness of
financial and accounting procedures.

15. Structural Control
• Bureaucratic Control
– A form of organizational control characterized by
formal and mechanistic structural arrangements.
• Clan Control
– An approach to organizational
control characterized by
informal and organic
structural arrangements.

16. Strategic Control
Strategic control aimed at ensuring that the organization is
maintaining an effective alignment with its environment and
moving toward achieving its strategic goals.

17. CHARACTERISTICS OF EFFECTIVE CONTROL
A control system tends to be most effective when they are integrated with planning and
when they are flexible, accurate, timely and objective.
Integration with Planning
• The more explicitly and precisely control is linked to planning, the more effective
the control system.
Flexibility
• The control system must be flexible enough to accommodate change.
Accuracy
• Inaccurate information results in bad decision making and inappropriate
managerial actions.
Timeliness
• A control system should provide information as often as necessary.
Objectivity
• A control system must be free from bias and distortion.

18. End Of Presentati