This document discusses controlling as a management function. It defines controlling as measuring performance against standards and correcting deviations. The document outlines the nature, importance and types of controlling. It describes the process of controlling as measuring actual performance, comparing it to standards, and taking managerial action. The document also discusses different types of controls based on time, including feedback, concurrent, feed forward, strategic, tactical and operational controls.

1. UNIT V – CONTROLLING
R.ArunKumar,AP/Mech,RIT

2. SYLLABUS
System and process of controlling – budgetary and non-budgetary
control techniques – use of computers and IT in Management
control – Productivity problems and management – control and
performance – direct and preventive control – reporting.
R.ArunKumar,AP/Mech,RIT

3. Objective:
 To study various techniques for controlling the functions of
management.
Outcome:
 The student will be able to describe the control techniques and
the role of technology in management.
R.ArunKumar,AP/Mech,RIT

4. SYSTEM AND PROCESS OF CONTROLLING
CONTROLLING:
 According to Koontz and O‟Donnell“ Managerial control implies
measurement of accomplishment against the standard and
the correction of deviations to assure attainment of objectives
according to plans”
R.ArunKumar,AP/Mech,RIT

5. NATURE OF CONTROLLING:
1. Controlling is forward looking
R.ArunKumar,AP/Mech,RIT

6. NATURE OF CONTROLLING:
2. Controlling is goal oriented
R.ArunKumar,AP/Mech,RIT

7. NATURE OF CONTROLLING:
3. Controlling is pervasive in nature
R.ArunKumar,AP/Mech,RIT

8. NATURE OF CONTROLLING:
4. Controlling is a continuous process
R.ArunKumar,AP/Mech,RIT

9. NATURE OF CONTROLLING:
5. Controlling enables to make quick decisions
R.ArunKumar,AP/Mech,RIT

10. NATURE OF CONTROLLING:
6. Controlling is action based
R.ArunKumar,AP/Mech,RIT

11. NATURE OF CONTROLLING:
7. Controlling system should be acceptable
R.ArunKumar,AP/Mech,RIT

12. NATURE OF CONTROLLING:
8. Controlling should be participative
R.ArunKumar,AP/Mech,RIT

13. IMPORTANCE OF CONTROLLING:
 Enables managers to know whether goals are being met.
 Controlling provides a critical link back to planning.
 An effective control can provide information and feedback on
employee performance.
 Controlling protects organization and it‟s assets.
 Controlling provides effective supervision.
R.ArunKumar,AP/Mech,RIT

14. Planning – Controlling link:
R.ArunKumar,AP/Mech,RIT

15. TYPES OF MANAGERIAL CONTROL:
1. Financial control:
 Managers use financial statement such as income statement or
balance statement to monitor the progress of plans.
 Income statement shows the revenue, expense, profit, etc.
 Balance statement shows the worth of organization at a specific
time.
R.ArunKumar,AP/Mech,RIT

16. TYPES OF MANAGERIAL CONTROL: :
2. Budget control:
 Budget shows expectation of expense and the revenue to be
generated over a period of time.
R.ArunKumar,AP/Mech,RIT

17. TYPES OF MANAGERIAL CONTROL:
3. Marketing control:
 Helps to monitor the progress towards the goal of customer
satisfaction.
R.ArunKumar,AP/Mech,RIT

18. TYPES OF MANAGERIAL CONTROL:
4. Human resource control:
 Helps the manager to regulate and maintain quality of
employees in their job.
 e.g.: Training and development, performance appraisal,
disciplinary actions.
R.ArunKumar,AP/Mech,RIT

19. TYPES OF MANAGERIAL CONTROL:
5. Computers and information control:
 Helps to maintain confidential information from the hackers.
R.ArunKumar,AP/Mech,RIT

20. PROCESS OF CONTROLLING:
R.ArunKumar,AP/Mech,RIT

21. PROCESS OF CONTROLLING:
Step 1: Measuring actual performance:
 Managers should analyze „how and ‘what to measure’.
 Employee satisfaction, turnover, absenteeism, budgets are
control criteria(What)
 Common sources of information(How) for measuring performance.
R.ArunKumar,AP/Mech,RIT

22. PROCESS OF CONTROLLING:
Step 2: Comparing actual performance against standard:
 Its difficult to predict exactly the acceptable range of
variation.
R.ArunKumar,AP/Mech,RIT

23. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Managers can do three possible courses of action:
 Do nothing
 Correct actual performance
 Revise the standard
R.ArunKumar,AP/Mech,RIT

24. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Do nothing depends on individual decisions.
R.ArunKumar,AP/Mech,RIT

25. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 Correct actual performance can be performed by either
immediate corrective actions, basic corrective actions.
 For e.g., corrective actions for unsatisfied work are training
programs, disciplinary actions, etc.
R.ArunKumar,AP/Mech,RIT

26. PROCESS OF CONTROLLING:
Step 3: Taking managerial action:
 In some cases, variance may be due to unrealistic standards.
 Managers must be cautious about revising the standard
downward.
R.ArunKumar,AP/Mech,RIT

27. MANAGERIAL DECISION IN CONTROL PROCESS
R.ArunKumar,AP/Mech,RIT

28. CONTROL TYPES BASED ON TIME:
1. Feedback control:
 Feedback control is also called as post action control.
 Analyzes the past result and corrective actions are taken.
 e.g. Disciplinary actions
R.ArunKumar,AP/Mech,RIT

29. CONTROL TYPES BASED ON TIME:
2. Concurrent control:
 Concurrent control is also called as real time control.
 Corrective actions are meant for doing adjustments.
 e.g. Organization chart
R.ArunKumar,AP/Mech,RIT

30. CONTROL TYPES BASED ON TIME:
3. Feed forward control:
 This control evaluates the input and corrective measures are
implemented before the task in completed.
 e.g. Financial budgets.
R.ArunKumar,AP/Mech,RIT

31. CONTROL TYPES BASED ON TIME:
4. Strategic control:
 Involves monitoring of factors that could affect strategic
plans of an organization.
 These are meant for top level managers.
R.ArunKumar,AP/Mech,RIT

32. CONTROL TYPES BASED ON TIME:
5. Tactical control:
 Focuses on assessing the implementation of tactical plans at
departmental levels.
 These are meant for middle level managers.
R.ArunKumar,AP/Mech,RIT

33. CONTROL TYPES BASED ON TIME:
6. Operational control:
 Overseeing the implementation of day to day activities.
 These are meant for low level managers.
R.ArunKumar,AP/Mech,RIT