Chapter 27

Fundamentals of Controlling
 Importance Of Control
• Adjustments in Operations
• Policy Verification
• Managerial Responsibility
• Psychological Pressure
• Coordination in Action
• Organisational Efficiency and Effectiveness
Steps in Controlling
 Classification of steps…
• Establishment of Control Standards
• Measurement of Performance
• Comparing Actual And Standard Performance
• Correction of Deviations
 Controlling and
Management by Exception
Six basic ingredients:
1. Measurement
2. Projection
3. Selection
4. Observation
5. Comparison
6. Decision making
Benefits of Management by Exception
Design of Effective Control System
Principles…
• Integrating Strategies planning and Control
System
• Indentifying Strategic Control Points
• Organisational Communication
• Motivational Dynamics
 Essentials of Effective Control System
1. Reflecting Organisational Needs
2. Forward Looking
3. Promptness in Reporting Deviations
4. Pointing out Exceptions at Critical Points
5. Objective
6. Flexible
7. Economical
8. Simple
9. Motivating
10.Reflecting Organisational pattern