Professional Documents
Culture Documents
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~ DECISION PROCESS E6 CONTROLLING RJSK -DEsa.
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ModonKumor
M.A.•M.A.,B.Ed ..M.Phil.,M.B.A .•
Concept of controlling
03- - - -
c~ Controlling refers to the process of measurement of
performance according to standards, measuring
deviations and taking corrective action to achieve
predetermined goals. In order to seek results,
manager must exercise effective control over the
workers
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=-OEasut PROCESS~ COt1"'ROlllt'6a . .
-~-"~ CONTROLLINGsmDIS
Madan Kum.u
M.A..M.A.,B.Ed ..M.Phil.. M.B.A ..
BUSWESS~
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Definition
- - - -03- -- - -
~ "Managerial control implies the measurement of
accomplishment against the standard and the
correction of deviations to assure attainment of
objectives according to plans." - Koontz and
O'Donnell
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~lcld"11 Kurn,,r
~I A ,t,,I.J\.,B.Fd ,M .Phrl .~I 8 A ..
N a tu r e o f c o n tr o ll in g
0 3- - -- ~ -
(.. Go al - or ien ted pr oc es s
c. Pe rv as iv e
CJ Co nt in uo us
c;i Bo th a ba ck wa rd lo ok
in g as we ll as a fo rw ar d
lo ok in g fu nc tio n
NATURE OF
CONTROLLING
MJlllln KumM
~I A .M.A.,8.1-d ,M.Phal .M 8 A .
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Importance of controlling
- - - -03- -- - - -
{',i Accomplishing organizational goal
ca Judging accuracy of standards
r... Making efficient use of resources
c. Improving employees motivation
~ Ensuring order and discipline
c Facilitating coordination in action
Mndon Ku1n.1r
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Limitation of controlling
- - -- 0&~- - - -
QlDifficulty in setting quantitative standards
~ Little control on external factors
~ Resistance from employees
~ Costly affair
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A..
o\ lJd"11 Ku111.ir
M.A ,r-. l.,\ .,B.F1I ,M ,rhil ,M.B.A ,
Planning and Controlling are interrelated and
interdependent
~ (13-
c~ Planning and controlling are inseparable twins of
management
< They are interrelated and interdependent function of
management
<.>i Without planning there lies no basis for controlling and
.
vice versa
r~ Planning is the base of controlling functions
r->1 Planning without controlling is meaningless
r x Planning is a thinking process while controlling is an
executive function
M,ldlln Kum.tr
M.A.. M.A.,B.Ed.. M.Phil ..M.B.A..
Planning and Controlling are interrelated
and interdependent
- -03---- - - -
Planning based on facts makes controlling easier and
(;)1
effective
c~ Controlling improves future planning by providing
information derived past experiences
M.,don Kum.u
M.A.. M.A.,B.Ed..M.Phil.,M.13.A..
Both are forward-looking and
backward-looking functions
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Madon Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Process of Controlling
- - -- -03--- - - -
Setting perforrnance stnndards
Analyzing deviations
Madon Kum41r
M.A.,M.A.,B.Ed .. M.Phil.. M.B.A..
3.Comparing Actual
performance with standards
03- - -
c ... This step involves comparison of actual performance
with the standard. Such comparison helps in
revealing the deviations between actual and desired
results. Comparison becomes easier when standards
are set in quantitative terms
M,icfon Kum.tr
M .A ..M .A.,8 .Ed .. M .Phil.,M .B.A ..
4.Analyzing deviations
- - - -03- - --
c~ Under this step, deviations in key areas of business
need to be attended on urgent basis as compared to
deviations in certain insignificant areas. There is
need to determine the acceptable range of deviations
in all operational areas. Following points should be
kept in mind , while analyzing deviations ....
M,,d,m Kum.u
M.A .•M .A.,B.Ed.,M .Phil.,M .B.A ..
- - - -03--- - - -
(~ Critical point control
c.i."' Accordin.g to this principle , control system should
first focus on Key Result Areas KRAs, which are
critical to the success of the organization. It is
because, it is not possible to keep a check on all the
activities of the enterprise. Therefore , if anything
goes wrong at the critical points or key areas,
immediate action should be taken.
Madan Kumar
M.A ..M .A .,B.Ed.,M.Phil.•M.8.A ..
ption
~ Management/ control by exce
It su gg es ts that, if m an ag er tries
ro l ev er yt hi ng, he m ay en d up in co nt ro lli ng
to co nt
no th in g.
Madan Kum.>r
M.A.,M .A,,B,Ed.,M,PhU.,M.B.A,,
Advantages of Critical Point
Control and Managentent by
Exc& io~- - - - -
c~ It saves time and effort of the managers as they deal
with major deviations only .
c. l There is better utilization of managerial talents
(Ji It facilitates delegation of authority and increases
morale, when routine problems are left to the
subordinates
c~ Timely action help to keep the organization on the
right track.
M,,d,•in Kum.u
M.A.. M.A.,B.Ed .. M.Phil .. M.B.A.,
5.Taking corrective action
03- - - -
( This is the final step in which manger takes
corrective measures to bring back everything on
track in the organization i.e., according to set plans,
corrections are required in KRAs, witch are cortical
to the success of the organization ,or, in areas where
deviations go beyond tl1e permissible limits ..
M,,don Kum.,r
M.A .,M.A ..B.Ed.,M .Phil.,M.6.A .,
Defective material Change the quality specilication of
materials
Defective machinery Repair/ replacement f machinery
Defective process Modify the exiting process
Defective physical conditions Improve the physical conditions of
work
M~d11n Kum.1r
M .A.,M.A,,8.Ed.,M .Phil.,M .8.A.,