MINORE PROJECT ON CONTROLLING

Submitted in partial fulfillment of the requirement for the Award of the degree of

Bachelor of Business Administration(BBA)

TO Guru Gobind Singh Indraprastha University, Delhi

Submitted to: Ms Punitika Batra

Submitted by: Urvashi Vashisht Enroll. No.:00320501711

BLS INSTITUTE OF TECHNOLOGY AND MANAGEMENT

DELHI-Rohatk Road , NH-10,Jakhoda,Bhadurgarh124507 Batch:(2012-2014)

BLS INSTITUTE OF TECHNOLOGYAND MANAGEMENT

Guru Gobind Singh Indraprastha University, Delhi

CERTIFICATE

This is to certify that the project CONTROLLING is a bonafide work of Urvashi, Roll No.:00320501711 who completed the project under my supervision as minor Project. She has done the project with diligence and sincerity and has put this projet.

Singnature of Student

Singnature of Guide.

ACKNOWLEDGEMENT

I would like to express my sinecer thanks and deep felt gratitude to my mentor Ms Punitika batra. Whose help and support and encouragement has been instrumental for the completion of this project. I am also greatful to my parents for their generous help and support in conducting the research.

URVASHI 00320501711

LIST OF TABELS
S .No 1 Name of Chapter Introduction to Controlling. Page No. Teachers Sign

Objective and Scope.

Theories of Controlling.

Case study. 4 Summary. Bibliography.

INTRODUCTION

MANAGEMENT
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the

purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

Some definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker (19092005), the basic task of a management is twofold: marketing and innovation. Directors and managers have the power and responsibility to make decisions to manage an enterprise when given the authority by the shareholders. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer.

THEORITICAL SCOPE
At first, one views management functionally, such as measuring quantity, adjusting plans,meeting goals.This applies even in situations planning does not take place. From this perspective, Henri Fayol (18411925)]considers management to consist of six functions: forecasting, planning, organizing, commanding, coordinating and controlling. He was one of the most influential contributors to modern concepts of management.

Another way of thinking, Mary Parker Follett (18681933), defined management as "the art of getting things done through people". She described management as philosophy. Some people, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or class. One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce, as for example in charities and in the public sector. More realistically, however, every organization must manage its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments which teach management as "business schools." Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more inclusive term "management."

BASIC FUNCTIONS

Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and motivation. Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc.) and generating plans for action. Organizing: (Implementation)pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans. Staffing: Job analysis, recruitment and hiring for appropriate jobs. Leading/directing: Determining what needs to be done in a situation and getting people to do it. Controlling/monitoring: Checking progress against plans. Motivation: Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation does not take place in an organization, then employees may not contribute to the other functions (which are usually set by top-level management).

CONTROLLING FUNCTION OF MANAGEMENT

What is Controlling? Controlling consist of verifying whether everything occurs in conformities with the plans adopted, instruction issued and principles established. Controlling ensures that there is effective and eficient utilisation of organisational utilisation so as to achieve planned goals. Controlling measuers the deviation of actual performance from the standard performance, discovers the cause of such deviations and help in taking correct actions. According to Brech, Controlling is the systematic exercise which is called as process of checking actual performance against the standards of palns with a view to ensure adequate progress and also recording such exercise is gained as a contributions to possible future needs. According to Donnell , Just a navigator continually takes reading to ensure whether he is relative to a planed action , so should a business manager continually take reading to assure himself that is enterprise on right course. Controlling has two basic purpose: 1. It facilitate co-ordination. 2. It helps in planning.

Features of Controlling Functions.

Following are the characteristics of controlling function of management. 1. Controlling is the end of function-A function which comes once the performance are made in conformities with plans.

2. Controlling is a pervasive function-which means it is performed by managers at all level and in all type of concerns. 3. Controlling is forward looking-because effective control is not possible with out past being controlled. Controlling always look for future so that follow-up can be made whenever required. 4. Controlling is dynamic process-since controlling requires taking reviewal methods, changes have to be made wherever possible. 5. Controlling is related with planning-Planning and controlling are two inseparable function of management .Without planning controlling function is meaningless exercise and without planning controlling is useless.

OBJECTIVE AND SCOPE OF CONTROLLING

SCOPE
Controlling is very wide in scope as it does not end only by comparing the actual performance with pllaned performance but it tries to find the reasons and solutions for such problems also .For example, if the planned output is 1,000 units and actual output is 800 units, then controlling functions will look for reasons of this deviations. If the reason is falty in machinery or inefficiency of workers then the corrective measures are taken by inefficiency of workers then they are sent for training so that their efficiency can be improved. There are two aspects of controlling function. There are : strategic control and operational control. Strategic control refers to check how effective the strategies and the plans are because sometimes there can be deviation in actual performance and planned performance due to plans and strategies. The operational aspect refers to focus on managerial and other activites of the organization .That is to find out whether the mismatch is due to faulty is the actions or activities. In both the aspects the managers try to find out the reasons for mismatch and take corrective measures.

IMPORTANCE OF CONTROLLING
1. Helps in achieving organizational goals .When the plans are made in the organization these are directed towards achievement of organizational goal and the controlling function ensures that the all activities in the organization take place according to plan and if there is any deviation, timely action is taken to bring back the activities on the path of planning. When all the activities are going according to plan then automatically these will direct towards achievement of organizational goals. 2. Judging the accuracy of standards. Through strategic controlling we can easily judge whether the standards or targets set are accurate or not. An accurate control system revised standards from time to time to match them with environmental changes.

3. Making efficient use of Resources. Like traffic signal control guides the organization and keep it on the right track. Each activities is performed according to predetermined standard. As a result there is most and effective use of resources. 4. Improving employees motivation .An effective control system communicates the goals and standards of appraisal for employees to subordinates well in advances. A good control system also guides employees to come out from there problems. This free communication and care motivate the employees to give better performance. 5. Ensure order and discipline. Control creates an atmosphere of order and discipline in the organization .Effective controlling systems keep the subordinates under check and make sure they perform their functions efficiently .Share control can have check over dishonesty and fraud employees. 6. Facilitate coordination in action. Control helps to maintain equilibrium between means and ends. Controlling makes sure that proper direction is taken and that various factors are maintained properly. All the departments are controlled according to predetermined standards which are well coordinated with one another. Control provides unity of direction. 7. Controlling helps in improving the performance of the employees. Controlling insists on continuous check on the employees and control helps in creating an atmosphere of order and discipline. Under controlling function it is made sure that employees are aware of their duties and reponsibilites very clearly. 8. Controlling helps in minimising the errors. Small errors or small mistakes may not seriously affect the organisation. But if these errors are repeted again and again it will become a serious matter and can bring disaster for the organisation. An effective controlling system helps in minimizing the errors by continues monitoring and check .The managers try to detect the errors on time and take remedial steps to minimise the effect error.

LIMITATION OF CONTROLLING
1. Difficulty is setting quantitative standards. Control system loses its effectiveness when standard of performance cannot be defined in quantitative terms and it is very dificult to set quantitative standards for human behaviour, efficiency level, job satisfaction, employees moral etc. In such cases judgment depends upon the discretion of manager. 2. No control on external factors. An enterprise cannot control the external factors such as government policy, technological changes, change in fashion, change in competitors policy etc. 3. Resistance from employees. Employees often resist control as a result effectiveness of control reduces. Employees feel control reduces or curtails their freedom. Employees may resist and go against the use of cameras, to observe them minutely. 4. Costly affairs. Control is an expensive process. It involves lot of time and efforts as sufficient attention has to be paid to observe the performance of the employees. To install an expensive control system organisation have to spend a large amount. Management must benefit the controlling system with the cost involved in installing them The benefit must be more then the cost involved then only controlling is effective otherwise it lead to inefficiency.

RELATIONSHIP BETWEEN PLANNING AND CONTROLLING

The planning and controlling function of management are very closely related. The relation between both the functions is explained below:1. Meaning. Planning is the basic function of every enterprise as in planning we decide what is to be done, how it is to be done, when it is to be done . Planning bridges the gap between where we are standing today and where we want to reach. Controlling means keeping a check that everything is in accordance with plan and if there is any deviation, taking preventive measures to stop that deviation. The meaning of controlling makes it clear that controlling function is undertaken for right and timely implementation of plans. 2. Planning and controlling are interdependent and interlinked. Planning and controlling functions always co-exist or have to exist together as one function depends on the other. The controlling function compares actual performance then controlling manager will not be able to know whether the actual performance is O.K. or not. The base for comparison or the yardstick to check is given by planning to controlling function .On other hand, the planning function is also dependent on controlling function as plans are not made only on papers but these have to be followed and implemented in the organizations. The controlling function make sure that everyone follow the plan strictly. Continuous monitoring and check in controlling function make it possible that everyone follow the plan. So both the function are interlinked and interdependent as for successful execution of both the functions planning and controlling must support each other. 3. Planning and controlling both are backward looking as well as forward looking. Controlling is backward looking because like a postmortem of past activities the manager looks back to previous years performance to find out its deviation from standard planning is also backward looking because planning is guided by past experience and feed back report of controlling function. Planning is forward looking because plans are prepared for future. It involves looking in advance and making policy for maximum utilisation of resources in future. Controlling is also forward looking because controlling does not end only bt comparing past performance with standard. It involves finding the reasons for deviations do not occur infuture. So, this statement that planning is forward looking and controlling is backward looking is only partially correct as planningand controlling are both forward looking as well as backward looking. Planning and controlling are two separate fuctions of management, yet they are closely related. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absense of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. According to Billy Goetz, " Relationship between the two can be summarized in the following points; Planning proceeds controlling and controlling succeeds planning. Planning and controlling are inseperable functions of management. Activities are put on rails by planning and they are kept at right place through controlling.

The process of planning and controlling works on Systems Approach which is as follows: Planning Results Corrective Action.

Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise. Planning and controlling reinforce each other. Each drives the other management.

In the present dynamic environment which affects the organization, the strong relationship between the two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it give us stimulus to make better plans. Therfore, planning and controlling are inseperate functions of a business enterprise.

CONTROLLING AS A FUNCTION OF MANAGEMENT

Controlling as a management function involves following steps: 1. Establishment of standards- Standards are the plans or the targets which have to be achieved in the course of business function. They can also be called as the criterions for judging the performance. Standards generally are classified into two2. Measurable or tangible - Those standards which can be measured and expressed are called as measurable standards. They can be in form of cost, output, expenditure, time, profit, etc. 3. Non-measurable or intangible- There are standards which cannot be measured monetarily. For example- performance of a manager, deviation of workers, their attitudes towards a concern. These are called as intangible standards. Controlling becomes easy through establishment of these standards because controlling is exercised on the basis of these standards. 4. Measurement of performance- The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative measurement becomes difficult when performance of manager has to be measured. Performance of a manager cannot be measured in quantities. It can be measured only byI. Attitude of the workers, II. Their morale to work, III. The development in the attitudes regarding the physical environment, and IV. Their communication with the superiors. It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports. 5. Comparison of actual and standard performance- Comparison of actual performance with the planned targets is very important. Deviation can be defined as the gap between actual performance and the planned targets. The manager has to find

out two things here- extent of deviation and cause of deviation. Extent of deviation means that the manager has to find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance. The managers have to exercise control by exception. He has to find out those deviations which are critical and important for business. Minor deviations have to be ignored. Major deviations like replacement of machinery, appointment of workers, quality of raw material, rate of profits, etc. should be looked upon consciously. Therefore it is said, If a manager controls everything, he ends up controlling nothing. For example, if stationery charges increase by a minor 5 to 10%, it can be called as a minor deviation. On the other hand, if monthly production decreases continuously, it is called as major deviation. I. Once the deviation is identified, a manager has to think about various cause which has led to deviation. The causes can beII. Erroneous planning, III. Co-ordination loosens, IV. Implementation of plans is defective, and V. Supervision and communication is ineffective, etc. 6. Taking remedial actions- Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives hereI. Taking corrective measures for deviations which have occurred; and II. After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow up is an important step because it is only through taking corrective measures, a manager can exercise controlling.

CONTROLLING PROCESS
1. Setting up of (target) standards. Standards means target on the basis which the actual performance is measured. The standard become basis of comparisons and the manager inists on following standards. The standards must be achievable, high or very high standards which can not be achived are of no use. Standard must be setup keeping in mind the resources of the organisation and as far as possible standards must be set up in numerical or measurable terms. For example Standard sale Rs.20 lakh per annum. Standard profit - 4 lakh Reduction in cost by 5% 2. Measuring of performance. After setting up the standards the performance of the employees is measured by evaluating the actual work done by the employees. When the performance can be measured numerically then it is very convenient to measure the performance. While measuring he performance the quantitative as well as qualitative aspects of performance is kept in mind. Sometimes employees achieve the quantitative standards by ignoring qualitative standards. That is why while measuring the performance quality standards are also measured. Certain quality parameters are fixed to measured the quality standards when number of rejection or sales return increases. It indicates low standard of quality.

3. Compare performance against standards. After measuring the performance the manager compares the actual performance with the planned performance and standards. If there is match in both then the controlling function ends there only. But if there is match in both then the controlling function ends there only. But if there is mismatch or deviation then the manager tries to find out the extent of deviation. If the deviation is minor then it should be ignored. But if the deviation is more then timely actions must be taken. 4. Analyzing deviation. All deviations need not be brought to the notice of top management. A range of deviation should be established and only cases beyond this range should be brought to the knowledge of top level management. They must divide the deviations. 5. Taking corrective measure. On comparing the actual performance with the planned performance, Then next step is to know the reasons for such deviations and trying to remove deviations in future. The manager takes measures it bring back everything in the track i.e., according to plan, Taking corrective measures may involve: a) Let the situation remain same if the deviations are minor. b) Redesign or re-frame the plans or strategies if these are overstated or not matching with the present day business environment.

FEEDBACK IN CONTROLLING
The controlling function does not end by taking corrective actions as it is a continues process. After suggesting the corrective measures a feedback report is prepared. Feedback refers to list of reasons for deviations of plans or for inefficiency in overall working of organization along with reasons the corrective measures are also specified in the feedback report and feedback acts as a base to establish the standard for next year and controlling process again starts from 1st step.

DEVIATION IN CONTROLLING
Deviation refers to difference between actual performance and standard performance. Positive deviation. When actual performance is better than the plan performance it is called positive deviation e.g. plan 100 units. Actual production =120 units Deviation =+20 units

Negative deviation. When actual performance is less than the plan performance then it is called negative deviation. For example, Plan =100 Actual production= 80units

TECHNIQUES OF MANAGERIAL CONTROL

1. Traditional techniques These are the techniques which were commonly used by various companies. Although in present environment these have become outdated but still many companies are using these: Personal observation. Statistical reports. Break even analysis. Budgetary control. i. Personal observation. This is most traditional and most popular method of control. Under this manager observes the subordinates while they are performing job. With the help of these observations they can easily analyse the performance of employees. By comparing the performance chart of current year with previous year the managers can know the progress of their performance. Statistical Reports. Various concepts of stats such as graphical presentation, correlation, average, percentage, ratios, etc.are very useful in analysing the performance of employees. By converting performance report into statistical chart or table you can easily point out the progress or deviation of performance. Break even Analysis. Brake even analysis is a useful technique to study relationship between costs and profit, break even point of on profit no loss. When we reach break even point, it refers to sales amount at which company is niether earning profit nor incurring loss. With the help of break even analysis techniques managers can estimates profits at levels of cost and revenue. Budgetary Control. Budget is a ststement of expected results and expected cost expressed in numerical terms. Budget is a ststement which helps us to know the future results and to achive the results how much we will have to spend. There are different types of budget which can be prepared by an organisation : for example, sales budget, production budget, financial budget, cash budget etc. In Budgetary control techniques the estimated results are compared with the actual results. The variation between these two indicates inefficiency. Budgetary control provides following benefits to the company : 1) Budgeting focuses on standard of objectives. 2) Budget helps subordinates to compare their performance with budgetary standards and can do self appraisal. 3) Through budgeting managers can allocate resources to departments. As budget of one deptt. Depends on other. For example,budget of sales deptt. Depends upon budget of production deptt. Budget of production deptt. Depends upon budget of purchase deptt. 4) It helps to use th principal of management by exception by giving more attention to departments where actual operations and target deviate from budgetary standards.

ii.

iii.

iv.

The success of budgetary techniques depends upon the estimated of standards. As far as possible we should prepare flexible budgets due to dynamic environment.

MODERN TECHNIQUES OF CONTROL

Now a days the common control techniques preferred by comparies are: 1. Return on Investment (ROI). Return on investment is a useful technique of controlling over-all performance of company. Ti is also known as return on capital employed. The essence of this approach is that profit is not taken as an absolute figure but it is considered in relation to capitalinvested. With this methok we can compare the earning of one company with othe even when they have invested different capital Because it determines the ratio of earning and not the absolute earning. Net Income can be taken before or after tax. Total investment includes working capital,fixed capitaland free reserve. To avoid confusion gross assets can also betaken in place of total investment. The technique of ROI offers following advantages toan organization . It indicates how effectively resources are being used. We can compare the performance of business with previous years performance by comparing ROI of both the years. It facilitates balanced use of capital employed. It focuses attention on profits and relates them to capital invested. 2. Ratio Analysis. It refers to evaluation and analysis of financial statements by calculating some important ratios. The common ratios which help to fraw important conclusions from the financial statements are: Liquidity Ratio.This ratio helps to measure the ability of business-men to pay the amount due to various stakeholders. These also help to know the short term solvency of firms. Common ratios which are calculated under the category of liquidity ratio are Solvency ratio. This ratio is calculated to find out the long term solvency of firms. It helps to find the ability of firm to pay back its debt. Profitability ratio. These ratios are calculated to find out the profit- ability position of a businessman. These ratios measures the relationship between profit or earning and capital employees or sales. Turnover ratios. Turnover ratios are calculated to determine the efficiently utilization of resources. Higher turnover indicate efficient utilization whereas lower turnover means inefficient utilization of resources. 3. Responsibility accounting. Under this technique of controlling organization is divided into various responsibility centers are generally various sections or departments of an organization and head of the department is considered as responsibility head as he is responsi-ble for the overall growth and achievement of his department or center .The comman types of responsibilities centers created in the organization are: Cost or expense center. Revenue center.

 Profit center. Investment center. 4. Network techniques (PERT and CPM). The object of network is to help planning , organizing , and controlling the operation to enable he management in accomplishing the project economically and efficiently . These techniques deal with time scheduling and resources allocation for these activities for these activities and aim at effective execution of projects with-in given time schedule and cost. There are various types of network techniques but PERT i.e., programmes Evaluation and Review Technique and CPM i.e., Critical path method are most popular techniques. PERT provides the framework for treating wide range of project management problems. PERT provides managers with the information they need in planning and controlling schedules and cost in development projects. Under Critical Path Method (CPM) the project is analysed into different operations or activities and their relationship are determined and shown on the network diagram. The steps involved in using PERT/CPM are given below: The project is divided into a number of clearly identified activities. These clearly identified activities are arranged in logical sequence. A network diagram is prepared to show the sequence of activities. Time estimated are prepared for each activity. Generally these time estimates are prepared : these are optimistic (shortest time) pessimistic (longest time) and most likely time estimate is prepared. In CPM cost required to complete the project is also calculated. The longest path is identified as critical path. It represents the sequence of those activities where no delay can be permitted. If required the plan can be modified so that there is timely execution and completion of project. PERT and CPM are commonly used in ship-building, aircraft manufacturing and other construction projects. 5. Management audit. This control techniques helps to measure the efficiency levels of managers. Financial audit has been used by firm from long time but management audit is a new concept. Although there is no chartered accountancy degree which is authorized to do management audit. But still many companies are doing management audit to find out the overall performance of managers. Management audit is a comprehensive and constructive review of performance of management team of any organization . Managers perform various function such as planning, organizing, staffing, directing, and controlling etc. The main purpose of management audit is to see that these functions are performed efficiently and effectively. The main advantages of management audit are : It reviews overall plan and policies of managers. It helps to locate present and future deficiency in the performance on management function. It would highlight possible opportunities for the organization. It would determined whether or not organization is working efficiently. It would evaluate the progress made by the enterprise through the introduction of new techniques and ideas.

It ensures updating of existing policies and strategies in light of environmental changes.

Limitations of Management Audit

i. There is no standard techniques of managerial skill. ii. Management audit is not compulsory by law like financial audit. iii. There is shortage of qualified management auditors. iv. The scope and contents of management vary from firm to firm. 6. Management Information System. It is a control techniques which provides information and support for effective managerial decision-making. Right decision can be taken at right time only when managers receive accurate and timely information. MIS provides the required information to managers on time and systematically. MIS provides the required information on time managers can take timely actions if actual performance is different from standards.

CASE STUDIES CASE STUDY 1

A company M Ltd. Manufactuiring mobile phones bothfor domestic indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regular to sales and customer satisfaction. Also mobile market in india has grown tremendously and new player have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing. 1. Identify the benefits the company will derive from a good control system. Helps in achieving organizational goals .When the plans are made in the organization these are directed towards achievement of organizational goal and the controlling function ensures that the all activities in the organization take place according to plan and if there is any deviation, timely action is taken to bring back the activities on the path of planning. When all the activities are going according to plan then automatically these will direct towards achievement of organizational goals. Judging the accuracy of standards. Through strategic controlling we can easily judge whether the standards or targets set are accurate or not. An accurate control system revised standards from time to time to match them with environmental changes. Making efficient use of Resources. Like traffic signal control guides the organization and keep it on the right track. Each activities is performed according to predetermined standard. As a result there is most and effective use of resources.

Improving employees motivation .An effective control system communicates the goals and standards of appraisal for employees to subordinates well in advances. A good control system also guides employees to come out from there problems. This free communication and care motivate the employees to give better performance. Ensure order and discipline. Control creates an atmosphere of order and discipline in the organization .Effective controlling systems keep the subordinates under check and make sure they perform their functions efficiently .Share control can have check over dishonesty and fraud employees. Facilitate coordination in action. Control helps to maintain equilibrium between means and ends. Controlling makes sure that proper direction is taken and that various factors are maintained properly. All the departments are controlled according to predetermined standards which are well coordinated with one another. Control provides unity of direction. Controlling helps in improving the performance of the employees. Controlling insists on continuous check on the employees and control helps in creating an atmosphere of order and discipline. Under controlling function it is made sure that employees are aware of their duties and reponsibilites very clearly. Controlling helps in minimising the errors. Small errors or small mistakes may not seriously affect the organisation. But if these errors are repeted again and again it will become a serious matter and can bring disaster for the organisation. An effective controlling system helps in minimizing the errors by continues monitoring and check .The managers try to detect the errors on time and take remedial steps to minimise the effect error.

2. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and target attained. Company can relates its planning with control in this line of bussiness by following measures by implemented and effective controlling system and following a controlling process.

3. Give the steps in control process that the company should follow to remove the problems it is facing. Setting up of (target) standards. Standards means target on the basis which the actual performance is measured. The standard become basis of comparisons and the manager inists on following standards. The standards must be achievable, high or very high standards which can not be achived are of no use. Standard must be setup keeping in mind the resources of the organisation and as far as possible standards must be set up in numerical or measurable terms. For example Standard sale Rs.20 lakh per annum.

Standard profit - 4 lakh Reduction in cost by 5% Measuring of performance. After setting up the standards the performance of the employees is measured by evaluating the actual work done by the employees. When the performance can be measured numerically then it is very convenient to measure the performance. While measuring he performance the quantitative as well as qualitative aspects of performance is kept in mind. Sometimes employees achieve the quantitative standards by ignoring qualitative standards. That is why while measuring the performance quality standards are also measured. Certain quality parameters are fixed to measured the quality standards when number of rejection or sales return increases. It indicates low standard of quality. Compare performance against standards. After measuring the performance the manager compares the actual performance with the planned performance and standards. If there is match in both then the controlling function ends there only. But if there is match in both then the controlling function ends there only. But if there is mismatch or deviation then the manager tries to find out the extent of deviation. If the deviation is minor then it should be ignored. But if the deviation is more then timely actions must be taken. Analyzing deviation. All deviations need not be brought to the notice of top management. A range of deviation should be established and only cases beyond this range should be brought to the knowledge of top level management. They must divide the deviations. Taking corrective measure. On comparing the actual performance with the planned performance, Then next step is to know the reasons for such deviations and trying to remove deviations in future. The manager takes measures it bring back everything in the track i.e., according to plan, Taking corrective measures may involve: Let the situation remain same if the deviations are minor. Redesign or re-frame the plans or strategies if these are overstated or not matching with the present day business environment.

4. What techniques of control can the company use ? Company can use following techniques of control. Returns of investment (ROI) Responsibility Accounting. Management Audit. Management Information System (MIS)

CASE STUDY 2
It's challenging enough to keep systems secure within a corporate network imagine having to secure a network in which you had little to no control over each endpoint. No security policies. No way to confirm what software was installed, how it was configured, what types of applications were downloaded, or even determine software patch levels.

That's the world of Adrian Raymond, network manager at Kelly College in Tavistock, Devon, UK. Adrian is responsible for keeping the network running safely for the independent coeducational boarding and day education school. In addition to its full academic curriculum, Kelly College offers an extensive range of extracurricular activities, as well as clubs and societies. As an independent boarding school, our needs are not unlike larger institutions," says Raymond. His small IT staff supports users and monitors the network from 8:30 AM through 5:00 PM, but the network users especially the students access that network 24/7. "While we want to encourage students to use our resources and become competent autonomous IT users, we also need to prevent damage to our systems from either our resident users or malicious outsiders," he says. To make things even more challenging, IT students with exceptional grades actually are encouraged by the Information Communication Technology (ICT) teachers to "investigate" the school's network. "We have no sanctions to prevent students making attempts at hacking. This tends to keep us alert," he says. Those network use policies would keep any security manager on his/her toes; yet, the college knew it still had to find a way to keep those network freedoms in place, while also ensuring that the integrity of the network was not placed in jeopardy and all students and administrators could use the school's IT resources safely. That meant bringing a manageable, flexible, yet adequate level of security to the network, both wireless and wired. For some time, Kelly College provided F-Secure Internet Security software to all of its students for their own PCs. However, there was no way for IT to check to see if the software actually was installed, running properly, and up to date. To get to the level of protection it needed, Kelly College considered various dedicated wireless "intrusion prevention" systems, as well as the possibility of network access control deployment. The wireless-only network security option was dismissed because it did not provide a complete solution, as all its wired connections still were unprotected. Also, the hardware-based NAC technologies that were evaluated would have required the school to replace or reconfigure all of its existing network switches obviously at a substantial cost. To find a viable fix to its situation, Kelly College turned to a local security solutions provider, Armana Systems, to help it find the best way to secure its systems. "Kelly College needed a NAC solution that could meet its security requirements immediately, scale for future demand, and be easy to install," explains Paul Godden, managing director at Armana Systems. Kelly College ultimately installed the peer-to-peer-based dynamic NAC technology from InfoExpress. Dynamic NAC, Raymond explains, could be deployed with no network

changes, thus a deep level of inspection from an enterprise-class NAC device that is easy to use and manage. Dynamic NAC provides all the security the college needs on both its wired and wireless segments. "The main benefit of Dynamic NAC is how it enforces policies, with software enforcers being managed by a central server without manual intervention," says Raymond. For instance, a new user has to comply to be able to access the Domain, and this compliance helps to enforce the policy to other machines. In effect, we have enforcing clients attached to every hardware network device, with no way to avoid them being detected. One of the capabilities that separate InfoExpress' Dynamic NAC from other more complicated NAC offerings is its reliance on an organization's existing distributed network. Dynamic NAC turns qualified, secure PCs into NAC enforcers that can detect, quarantine, and remedy rogue endpoints and unhealthy PCs, says Armana Systems' Godden. At Kelly College, Dynamic NAC checks that the college -supplied F-Secure Internet Security software is installed, operational, and up to date, and ensures that no rogue PCs can connect to the college network. Dynamic NAC also can be used to harvest the F-Secure and Dynamic NAC agents automatically at the end of the school year. That would provide a considerable cost savings." With so many of its students encouraged to explore the network, and with no stated polices against hacking in place, Kelly College faced security challenges few others would want. And it needed security defenses that work consistently, with little management. "Dynamic NAC has helped us make certain that no outside visitors can access the network and that the right applications are running and up to date, all while academic curiosity on the network could occur without restraint" says Raymond.