Definition Of Controlling :

Control refers to task of ensuring that activity

are producing the desired results. Control in
this sense is limited to monitoring the
outcome of activities, reviewing feedback
information about this outcome, and if
necessary, taking corrective actions.

Controlling is determining what is being

accomplished-that is evaluating performance
and, if necessary, applying corrective
measures so that performance takes place
according to plans.
 PROCESS OF CONTROLLING :

Implementation Analysis of
Desired Corrective
Of Causes of
Performance Action plan
Corrections deviation

Identification
Measurement Comparison of
Actual Of
Of Actual &
performance Deviation
performance Standard

Management Control Process

 These steps may broadly may
classified into 4 parts :

1. Establishment of control standards

2. Measurement of performance
3. Comparing actual and standard
performance
4. Correction of deviations
 BUDGETORY CONTROL
 Budgetory Control is process of comparing
the actual results with the corresponding
budget data in order to approve
accomplishments or to remedy differences
by either adjusting the budgets estimates
or correcting the cause of the difference.
 Benefits of Budgetary Control
1. Budgetary Control as a tool for planning :
- Helps managers to plan their activities
- No ambiguity regarding the targets
- Cautious utilization of resources
- Helps in delegation of authority

2. Budgetary Control as a tool for control

- It is exact, accurate and precise
- Pinpoints any deviation between budgeted standards
& actual achievments.
- Provides direction for necessary control actions
3. Budgetary Control as an aid to Coordination.
- Promotes cooperation among various sub-units
- Encourages exchange of information among
various units
- Promotes balance activities in the organisation.
 Problems in Budgetary Control :
1. Planning Problems
- Uncertainty of future
- Jeopardizes the basic & important functions in
the organisation

2. Operational problems
- Sometimes it works against the morale of the
employees
- Sometimes it creates problems & conflicts in
the organisation
- Requires lot of paper work