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 Control involves keeping the organizational activities and functions on right track and aligned with goals and plans. for the purpose of taking corrective action to correct deviations.  The basic purpose of control system is to ensure that results are achieved according to plan.CONCEPT OF CONTROL  Control is the process of comparing actual performance with established standards. .

” .According To Harold Koontz- “Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

” by Henri Fayol(1916) . and the principles which have been laid down.“Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted . the orders which have been given. its object is to point out mistakes in order that they may be rectified and prevented from recurring.

CONCEPT OF CONTROLLING • Control Is Continuous Process • Control Is A Management Process • Control Is Embedded In Each Level Of Organizational Hierarchy •Control Is Forward Looking .

Control is closely linked with planning Control is a tool for achieving organizational activities Control is an end process Control compares actual performance with planned performance Control point out the error in the execution process .

 Promotes Co-ordination.  Helps in taking Corrective Action.  Helps in Decision-Making.IMPORTANCE OF CONTROL  Helps in achievement of goals.  Brings Order and Discipline  Facilitates Decentralization of Authority.  Helps in Better Planning.  Helps in proper execution and revision of plans.  Aid to Effective Supervision.  Cope with Uncertainty and Change. .

 Predictive or Feed forward Control.  Concurrent or Real-Time Control. .TYPES OF CONTROL  Feedback Control /Historical / Post control.

CHARACTERISTICS OF SOUND/EFFECTIVE CONTROL SYSTEM           Suitable Simple Selective Sound and Economical Flexible Forward-Looking Reasonable Objective Responsibility for Failures Acceptable .

PROCESS OF CONTROLLING Setting Objectives Standards and benchmarking Measuring performance Appraisal of performance Correcting deviations .

Setting objective Standards and benchmarking Measuring performance Appraisal of performance Feedback Correcting deviations .

TECHNIQUES OF CONTROLLING Traditional Techniques Personal Observation Setting Examples Plans and Policies Organizational Charts and Manuals Disciplinary systems Written Instructions .

  Special Reports And Analysis   Operational Audit Control Through Costing   Statistical Data Break Even Analysis Budget And Budgetary Control .

Modern Techniques Return On Investment Responsibility Accounting Human Asset Accounting Zero Based Budgeting PERT CPM Management Information System Management Audit Total Quality Management Six sigma .


both bulk buyers and individuals.Milk Products Limited is engaged in collecting . However . Mr. and distributing milk and milk products MILK PRODUCTS LIMITED in a large city in south India. R. K . R. The distribution manager was quite impressed by Mr. he promised to give him better opportunity whenever available . Ramesh joined gladly. processing . Ramesh joined the crew of distributors after graduating in commerce . The company has a crew of distributors who approach the fixed customers . . Ramesh but initially could not offer him a better job than that of a distributor . Mr. Most of the products of the company are such that these have to be distributed on daily basis.

He gathered that over the years. . crew members work slowly in the beginning just to accumulate overtime pay. R. Normally . There is no group leader but there are several old –timers who influence newcomers regarding the work rules. the company had paid around sixty per cent overtime unnecessarily. In order to ensure distribution of the products.basis. Mr. the company has a provision of overtime pay. The pace becomes hectic towards the end of the day with some overtime to meet the distribution schedule. Ramesh did not like this method of working but had to follow the group to be a good team mate.

the efficiency dropped down considerably and no crew member was near the target. . The basis duty of supervisor was to look after the distribution system and to develop new customers in a given area. there were four other supervisor also. He was quite sure about cutting the overtime cost and impressing upon the manager about fixing the quota of work per day in two parts-before lunch and after lunch. However. Ramesh was sure of making distribution system effective as he was aware about the delaying tactics of the crew. Ramesh. Mr. Beside.distribution supervisor. The distribution manager was convinced and introduced the system.

Discuss the nature of control system of Milk Products Limited and its efficacy? 2. What control system will you like to suggest to the company? .QUESTIONS 1.