This document provides an overview of various techniques for controlling organizational activities and performance. It discusses personal observation, budgeting including types of budgets, zero-base budgeting, break-even analysis, financial statements, statistical data and reports, management information systems, management audit, PERT/CPM techniques, economic value added, and market value added. The techniques help managers monitor and correct deviations from plans to achieve organizational goals efficiently.

1. TITLE

6. GROUP MEMBERS
• RAKSHA DEVADIGA
• MANISHA KHAMKAR
• SIDDESH CHAVAN
• VIR SINGH
• IAN MACHADO
• AMEET KAMBLE
• ADITYA KANCHAN
• AJINKYA KHARE

7. GROUP MEMEBERS
• NEHA DIDWANIA
• DIPESH BAIG
• YOGESH
• ROHAN SHETTY
• NAVEEN BAUDH
• ABHIJEET GHADI
• RAHUL PATIL

12. 1)The process of monitoring activities to
ensure that they are being accomplished
as planned and of correcting any
significant deviations.
2)Planning and controlling are closely
related.

13. Characteristics of
controlling
•Accuracy
•Timeliness
•Flexibility
•Acceptability
•Corrective action
•Economic feasibility

14. Importance of controlling
• Achievement of goals
• Making efficient use of resources.
• Improving employees motivation
• Ensure order and discipline.
• Controlling helpo in minimization of error.
• Controlling help in improving performance
of employees.

16. AREAS OF CONTROL
• Physical resources—inventory management, quality
control, and equipment control.
• Human resources—selection and placement,
training and development, performance appraisal,
and compensation.
• Information resources—sales and marketing
forecasts, environmental analysis, public relations,
production scheduling, and economic forecasting.
• Financial resources—managing capital funds and
cash flow, collection and payment of debts.

17. CONTROLLING FOR
ORGANIZATIONAL
PERFORMANCE
What Is Performance?
The end result of an activity
What Is Organizational
Performance?
The accumulated end results of all of the
organization’s work processes and activities
Designing strategies, work processes, and work
activities.
Coordinating the work of employees.

18. THE CONTROL
PROCESS

19. LIMITATIONS OF
CONTROLLING
•Difficulty in setting quantitative
standards.
•No control on external factors.
•Costly affair.
•Resistance from employees.

20. CHARACTERISTICS OF
EFFECTIVE CONTROL
SYSTEM
• Suitable
• Simple
• Selective
• Sound and economical
• Flexible
• Forward-looking
• Reasonable
• Objective
• Responsibility for failures
• Acceptable

22. INTRODUCTION
• To enable managers effectively
control the organizational
activities, a large number of
controlling techniques are
available.They help to produce
right quantity and quality of goods
at the right time.A managers
should know this
techniques,situations in which
they apply and variables that
should be considered in applying
the techniques.Controlling is the
last function of this series.

23. TYPES OF TECHNIQUES

25. PERSONAL OBSERVATION
• The manager personally observes the
operations in the workplace.The
manager corrects the deviations
whenever the need arises.This is the
oldest method of control.A face to face
interaction is possible whereby
workers can get their doubts solved on
the job and the necessary guidance
and counselling can also be provided
to them,then and there.

26. BUDGETING
A budget is a statement in which reflects
a future income,expenditure and profits
of the firm.
A budget is,The process of stating in
quantative terms,planned
organizational activities for a given
period of time.

27. TYPES OF BUDGETS
Operationg budgets
It relates to the operating activities of an
enterprise,which involves both revenue
and expenses.
Financial budgets
It predict various sources and uses of
finanace.It facilitates the working of
operating budget

28. ZERO BASE BUDGETING
This is a new technique and has been
become popular within a short period.It is
prepared without considering the previous
year’s figures.This technique requires the
recalculation of all organizational activities
to ascertain which should be
eliminated,reduced or increased.In other
words,the funds are estimated at current
requirements.It means finding out how
much amount is necessary to complete an
ongoing project.

29. BREAK EVEN ANALYSIS
• It is otherwise called as cost volume
profit analysis.It analyses relationship
among cost of production,volume pf
production,volume of sales and
profits.The point at which sales
revenue is equal to the total cost is
known as the breakeven point.In other
words,breakeven point is the at which
there is no profit or no loss.

30. FINANCIAL STATEMENT
• Financial statement depict the financial position
of the firm over a period of time, generally one
year. These statements are normally prepared
along with the last year’s statement so that the
firm can compare its present performance with
the last year’s performance and take necessary
action to improve its future performance. As
these statements are prepared at the end of the
financial year , as a measure of control , they
provide tips to managers to improve their future
performance.

31. ASPECTS
•
1)Liquidity-The firm can know its cash
position .
•
2)Financial Strength-Its assets and
liabilities and its equity position .
•
3)Profitability-The excess of revenue
over cost

32. Statistical Data And Reports
•
These types of reports are prepared in
quantitative terms and used in large
organizations.Then the variations from
standards can be easily measured.In
this way,control is exercised by the
management.A periodical report of
sales volume is an example of
statistical control reports.

34. • MIS is short for management information system
or management information services.
• Management information system, or MIS, broadly
refers to a computer-based system that provides
managers with the tools to organize, evaluate and
efficiently manage departments within an
organization.
• The role of the management information system
(MIS) manager is to focus on the organization's
information and technology systems.

35. • MIS performs a useful triple service function to
management. Actually MIS itself is a three stage
process – data generation, data processing and
information transmission.
• MIS enhances the management’s ability to plan,
measure and control performance, and taking
necessary and corrective action.
• MIS takes into account – the real time requirements,
frequency of requirement, accuracy requirement, data
reduction requirement, storage requirement etc.
• MIS reduces overload of information.

36. Following are activities performed during information System
processing:
1. Handling of voluminous data
2. Confirmation of the validity of data & transaction
3. Complex processing of data & multidimensional analysis
4. Quick search & retrieval
5. Mass storage
6. Communication of information system to the user on time
7. Fulfilling the changing needs of information

37. • Management theory and organizational behavior
• Human mind as processor
• Operation Research and network theory
• Accounting Applications
• Data Structure(DBMS)
• Decision theory and Mathematical Techniques

38. 1. Ensures that appropriate data is collected
from valid sources, processed and passed to
needy destinations.
2. Satisfies the needs through Query Systems,
Analysis Systems, Modeling systems.
3. Helps in strategic planning, Management
control, Operational control & Transaction
Processing

39. 1. Management audit is a modem technique of
controlling; in which the aim is to examine the
efficiency of the management’s philosophies,
policies, techniques etc. in successfully
running an enterprise.
2. Management audit may be conducted either
by an internal agency in the form of
Management Audit Cell (MAC); or by an
external agency such as management
consultants.

40. • To identify the level of achievements of the main
objectives of organisation .
• To identify the defects or irregularities of
management executives .
• To ensure that the management is going to
achieve the objectives .
• To help the management to do efficient
administration of the operation.

41. • Management audit provides suggestion to the
management which helps to maintain effective
management .
• Management audit helps the management
providing suggestion to attain goal of an
organization .
• Management auditor cannot understand the
practical problem . So, the suggestion provided
by them is theoretical but not practical
• Generally management gives more importance on
maintaining books of account rather then
concentrating on other factors .

42. PERT CPM
Developed by
the US Navy for
the planning
and control of
the Polaris
missile program
The emphasis
was on
completing
the program
in the
shortest
possible time.
Developed by
Du Pont to
solve project
scheduling
problems
The emphasis
was on the
trade-off
between the
cost of the
project and
its overall
completion
time

45. CPM PERT
•CPM uses activity oriented
network.
•PERT uses event oriented
Network.
•Durations of activity may be
estimated with a fair degree of
accuracy.
•Estimate of time for activities are
not so accurate and definite.
•It is used extensively in
construction projects.
•It is used mostly in research and
development projects,
particularly projects of non-
repetitive nature.
•CPM can control both time and
cost when planning.
•PERT is basically a tool for
planning.

48. • Economic Value Added is a measure of economic
profit. It is calculated as the difference between the
Net Operating Profit After Tax and the cost of
financing the firm’s Capital.
EVA = NoPAT – CAPITAL x COST OF CAPITAL

49. • TO DERIVE THE NOPAT VALUETO DERIVE THE NOPAT VALUE
SALES
- VARIABLE COST
-------------------------------------
CONTRIBUTION
- FIXED COST
--------------------------------------
EBITAD
- DEPRICIATION / AMORTIZATION
- TAX
--------------------------------------
No PAT

50. • It helps the company in monitoring the problem areas and
hence taking corrective action to resolve those problems.
• 2. It can also improve the corporate governance of the
company because since a higher EVA implies higher bonuses
to the managers they will be working hard and also honestly
which in turn augurs well for the company.
• It also helps the owners of the company to identify the best
person to run the company effectively and efficiently.
• 5. Using EVA company can evaluate the projects
independently and hence decide on whether to execute the
project or not .

51. • Market value added (MVA) is the difference between the
current market value of a firm and the capital contributed
by investors. If MVA is positive, the firm has added value. If it is
negative, the firm has destroyed value. The amount of value added
needs to be greater than the firm's investors could have achieved
investing in the market portfolio, adjusted for the leverage (beta
coefficient) of the firm relative to the market.
• MVA represents the open market value of a business and is
commonly used by investors to determine the company's
accumulation of wealth over time.
• Typically used for companies that are larger and publicly traded,
MVA is calculated by subtracting the amount of capital invested in
the business from the company's total market value.

52. The formula for MVA is:
MVA = V - K
where:
MVA is market value added
V is the market value of the firm, including
the value of the firm's equity and debt
K is the capital invested in the firm

53. • Benchmarking is the process of comparing one's
business processes and performance metrics to
industry bests or best practices from other
companies. Dimensions typically measured are
quality, time and cost. In the process of best
practice benchmarking, management identifies the
best firms in their industry, or in another industry
where similar processes exist, and compares the
results and processes of those studied (the
"targets") to one's own results and processes. In
this way, they learn how well the targets perform
and, more importantly, the business processes that
explain why these firms are successful.

54. • Product and process improvement :
By implementing benchmarking activity ,
organization can improve their operation
process .
• Time and cost reduction
Benchmarking is time and cost efficient
because it involves imitation and adaption
then pure invention .

56. THE NATURE OF INFORMATION
• WE TEND TO USE THE
TERM DATA AND
INFORMATION
INTERCHANGEBLY,THERE
IS DISTINCTION BETWEEN
TWO CONCEPTS..

57. MANAGEMENT INFORMATION
SYSTEM
• MIS is a system that provides
information needed manage
organization efficiently and effectively
MIS encompass three primary
components : technology,
people(individual, group,
organization) and data/information for
decision making..

58. Managing Information Services in a
Firm
The corporate Information Services (IS) department is the
unit responsible for providing or coordinating the
delivery of computer-based information services in an
organization. These services include:
1. Developing, maintaining, and maintaining
organizational information systems
2. Facilitating the acquisition and adaptation of software
and hardware.
3. Coordinates the delivery of many of these services,
rather than providing all of them itself.

59. The Role of Information Systems
Controls
To ensure secure operations of information
systems and thus safeguard assets and the data
stored in these systems, and to ensure that
applications achieve their objectives in an
efficient manner, an organization needs to
institute a set of policies, procedures, and
technological measures, collectively called
controls.
IS controls may be designed to:
1. Prevent an error or an attack from taking effect
2. Detect a violation..

60. Information technology also have
certain risks
• While information has long been appreciated
as a valuable and important asset, the rise of
the knowledge economy has led to
organizations becoming increasingly
dependent on information, information
processing and especially IT. Various events or
incidents that compromise IT in some way can
therefore cause adverse impacts on the
organization's business processes or mission,
ranging from inconsequential to catastrophic
in scale.

61. The net mission impact considering
• the probability that a particular threat-source will
exercise (accidentally trigger or intentionally exploit) a
particular information system vulnerability and
• the resulting impact if this should occur. IT-related
risks arise from legal liability or mission loss due to:
• Unauthorized (malicious or accidental) disclosure,
modification, or destruction of information
• Unintentional errors and omissions
• IT disruptions due to natural or man-made disasters
• Failure to exercise due care and diligence in the
implementation and operation of the IT system.

67. • Need for Leadership in global
organisations
• Understanding different cultures:
➔According to Richard D Lewis, the
different nations and cultures can be put
into three groups:

68. 1.Linear-active: the people in these
cultures are task-oriented planners .
2.Multi-active: People belonging to
these cultures are more focused on
interactions and dialogues.
1.Reactive: People in these cultures
usually express their ideas in a
passive voice.

69. WHAT ARE THE CHALLENGES TO
MANAGING A GLOBAL BUSINESS?
•Human resource management
issues
•Managing accounting and
control issues

70. MANAGING RISKS AND CHALLENGES
TO GOING GLOBAL
Perhaps the greatest challenge is refreshing the global
mindset. It is only through a fundamental shift in mindset that
new opportunities are discovered. In fact, some suggest it
should be a formal corporate process that consists of “global
learning.” We stress that this formal process should be an
ongoing commitment of time and energy and, perhaps more
important, the ability to admit that you never know
everything and to be always open to learning something new.

72. Definition of control function of
management
● After strategies are set and plans are made, management's
primary task is to take steps to ensure that these plans are
carried out, or, if conditions warrant, that the plans are modified.
This is the critical control function of management.
● The management literature is filled with advice on how to
achieve better control. This advice usually includes a description
of some type of measurement and feedback process:

73. Measurement and feedback
process
• The basic control process:
1.Wherever it is found
2.Whatever it is found
3.Whatever it controls
which involves three steps:
a.Establishing standards
b.Measuring performance against these standards
c.Correcting deviations from this standards and plans

74. • A good management control system stimulates action by
spotting the significant variations from the original
plan and highlighting them for the people who can set
things right.
• Controls need to focus on results.

75. Why are controls needed?
1.Accomplishing organisational goals
2.Judging accuracy of standards
3.Making efficient use of resources
4.Improving employee motivation
5.Ensuring order and discipline
6.Facilitating coordination in action

76. CONCLUSION
• control is essential function of management in every organisation
• the management process is incomplete or sometimes useless
without the control function
• controlling plays an important role in helping managers detect
irregularities, identify opportunities, handle complex situations,
decentralise authority, minimise costs, and cope with uncertainty.