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Slide 2 : Definition of Control

According to EFL Brech:
Control is checking current performance against pre-determined standards
contained in the plans, with a view to ensure adequate progress and
satisfactory performance.
Control is The regulation of organizational activities in such a way as to
facilitate goal attainment.
Management control refers to the process by which an organization
influences its subunits and members to behave in ways that lead to the
attainment of organizational objectives

Slide 3 : Type Of Control
1. Area Of control.
a. Physical resources:
Inventory management, quality control, equipment control
b. Human resources:
Selection and placement, training and development, performance
apprasial and compensation
c. Information resources:
Sales and marketing forecasts, environmental analysis, public
relations, production scheduling, and economic forecasting
d. Financial resources:
Managing capital fund and cash flow, collection,payment of debts.
2. Levels of Control
a. Strategic Control :
Strategic control is concerned with tracking the strategy as it
is being implemented, detecting any problem areas or potential
problem areas suggesting that the strategy is incorrect, and making
any necessary adjustments.
Strategic controls allow you to step back and look at the big
picture and make sure all the pieces of the picture are correctly
b. Structural Control :
Structural control focuses on how well an organization's
structural elements serve their intended purpose.
c. Operational Control:
Operational Control in contrast to strategic control, is
concerned with executing the strategy. Where operational controls
are imposed, they function within the framework established by the
Typical operational control measures include return on
investment, net profit, cost, and product quality.

Financial Control:

the firm’s performance can deteriorate. 3. Operating Employees – Slide 5 : Step In Control Process  Establishing standards: A control standard is a target against which subsequent performance will be compared. Responsibilities for Control Ultimate responsibility for control rests with all managers throughout an organization.someone whose primary responsibility is to carry out the management process. correct the deviation.  Comparing performance against standards: Performance may be higher than. also known as yes/no control or concurrent control. one of three actions is appropriate: do nothing (maintain status quo).  Screening Control. or change the standard. Performance measure must be valid for control to be effective.  Preliminary Control Preliminary control. Screening control relies on feedback processes. Without effective financial controls. It attempts to monitor the quality or quantity of these resources before they enter the organization. Screening control. Slide 6 : Operational Control Control of the processes an organization uses to transform resources into products or services is operations control.Financial control involves the management of a firm’s costs and expenses to control them in relation to budgeted amounts. For example. focuses on meeting standards for product or service quality or quantity during the transformation process. Manager .  Considering corrective action: After performance has been compared to standards. Such standards need to be measurable and consistent with the organization's goals and should identify performance indicators. focuses on the resources that the organization brings in from the environment. when quality checks are used to provide . Controller – a positions in organizations that helps line managers with their control activities. The person called. lower than. also known as steering control or feedforward control. or identical to the standard.  Measuring performance: Performance measurement is constant and ongoing in most organizations.

Financial Budget : shows the sources and uses of cash 2. are held by the organization. Post action control. also known as feedback control. it can provide management with information for future planning. 2. Nonmonetary Budget : expresses planned operations in nonfinancial terms such as units of output and machine to workers manufacturing a product. the workers know what. and flow out of the organization. 3. • Budgetary Control 1. or other quantifiable factors. if any.  Post action Control. Operating Budget : shows what quantities of products or services the organization intends to create and what financial resources will be used to create them. Post action control also may be used as a basis for rewarding employees. Budgets may be established at any organizational level. 3. Slide 7 : Financial Control Control of financial resources as they flow into the organization. corrective actions to take. . Although postaction control used alone may not be as effective as preliminary or screening control. units of output. Budgets are typically for one year or less. focuses on the outputs of the organization after the transformation process is complete. Budgets may be expressed in financial terms.  Types of Budgets 1.