CONTROLLING

INTRODUCTION

 Examples (real)
o Inadequate Management Control: Illegal connections made
on the electrical system resulting to fire which destroyed
P800 M Superferry 7 luxury ship on March 26, 1997
o Management’s Lack of Control & Lack of Effective
Government Control: Ozone Disco tragedy in March 18,
1996 due to failure in controlling day-to-day operations of
the firm and the failure to detect violations in the Building
Code
o Unauthorized use of lines which are billed for the
subscribers when they never made calls could not be stop in
a telephone company
 Examples mentioned are only a very small percentage in the
business world
 Normal business operations are hampered causing discontinuities in
employment and the provision of products and services
 Can be prevented with adequate controls instituted
WHAT IS CONTROLLING

 The “process of ascertaining whether organizational objectives have

been achieved; if not, why not; and determining what activities
should then be taken to achieve objectives better in the future.”
 It completes the cycle of management functions
 Objectives and goals that are set at the planning stage are verified
(as to achievement or completion at any given point in the
organizing and implementing stages)
 When expectations are not met within the schedule, corrective
measures are usually undertaken
 o All workers who do not produce the requirement are given
sufficient time to improve; no improvements = asked to
resign
o This will help the company keep its overhead and other
costs at expected

*steps in the control process

IMPORTANCE OF CONTROLLING

 Helps the organization achieve its goals efficiently and effectively

 Proper control measures minimize the harsh effects of the negative
occurrences (such as inevitable deviations, mistakes, and
shortcomings leading to unnecessary expenditures which increase
the cost of producing goods and services)
 Effective inventory control system, minimizes, if not totally
eliminates losses in inventory
 The importance of controlling is like in a typical factory
o If the required standard daily output for individual workers
= 100 pieces
TYPES OF CONTROL

1. Feedforward control
a. When management anticipates problems and prevents their
occurrence
b. Provides the assurance that the required human and
nonhuman resources are in place before operations begin
i. A manager of a chemical manufacturing firm makes
sure that the best people are selected and hired to
fill jobs.
ii. Materials required in the production process are
carefully checked to detect defects.
iii. The foregoing control measures are designed to
prevent wasting valuable resources.
iv. If these measures are not undertaken, the
likelihood that problems will occur is always present
2. Concurrent control
a. When operations are already ongoing and activities to
detect variances are made
b. When deviations occur, adjustments are made to ensure
compliance with requirements
c. Information on the adjustments are also necessary inputs in
the pre-operation phase
i. The manager of a construction firm constantly
monitors the progress of the company’s projects.
When the construction is behind schedule,
corrective measures like hiring additional
manpower are made
ii. In a firm engaged in the production and distribution
of water, the chemical composition of the water
procured from various sources is checked
thoroughly before they are distributed to the
consumers
iii. The production manager of an electronics
manufacturing firm inspects regularly the outputs
consisting of various electronics products coming
out of the production line
3. Feedback control
a. When information is gathered about a completed activity,
and in order that evaluation and steps for improvement are
derived.
b. Corrective actions aimed at improving future activities are
features of feedback control.
c. Feedback control validates objectives and standards
d. If accomplishments consist only of a percentage of standard
requirements, the standard may be too high or
inappropriate
i. The supervisor who discovers that continuous
overtime work for factory workers lowers the
quality of output. The feedback information
obtained leads to some adjustment in the overtime
schedule.