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CONTROLLING
PRESENTED BY: SHASHANK SHUKLA
SOM PRAKASH OJHA
Controlling as a Management Function
o Controlling
A process of monitoring performances and taking
action to ensure desired result.
It sees to it that the right thing happen, in the right
ways, at right time.
Controlling as a Management Function
o Controlling.
Done well, that the overall directions of the
individuals and groups are consistent with short and
long ranges plan.
It helps ensure that the objectives and
accomplishment are consistent with one another
through out an organization.
Controlling as a Management Function
o Controlling.
It helps maintain compliance with essential
organizational rules and policies.
Controlling as a Management Function
o Cybernetic control system.
One that is self contained in its performance
monitoring and correction capabilities.(thermostat)
The control process practice in the organization is not
cybernetic but it does follow similar principles.
The Control Process
Establish objective and standards.
Measures actual performances
Compare results with objectives and
standards.
Take corrective actions.
Establish Objectives and Standards
o The control process begins with planning and the
establishment of performance objectives.
o Performance objectives are defined and the standard
for measuring them are set,
Establish Objectives and Standards
o There are two types of standards:
Output standards- measures performance results in
terms of quality, quantity, cost or time.
Input standards- measures work efforts that go into a
performance task.
Measuring Actual Performances
o Measurements must be accurate enough to spot
deviation and variances between what really occurs
and what is most desired.
o Without measurement effective control is not
possible.
Comparing Results With Objectives And
Standards
o The comparison of actual performance with desired
performance establishes the need for action.
o Ways of making such comparison include:
Historical / Relative / Engineering
Benchmarking
Taking Corrective Actions
o Taking any action necessary to correct or improve
things.
o Management-by-exception focuses managerial
attention on substantial differences between actual
and desired performances.
Taking Corrective Action
Management by exception can save the managers time
energy and other resources, and concentrate efforts on
areas showing the greatest need.
There are two types of exceptions:
a) Problems- below standard.
b) Opportunities- above standard.
Effective Control
The Best Control in Organization are
o Strategic and result oriented.
o Understandable
o Encourage self control.
Effective Control
The Best Control in Organization are
o Timely and exception oriented.
o Positive in nature
o Fair and objective
o Flexible
Types Of Control
o Preliminary
Sometimes called the feed forward control, they are
accomplished before work activity begins.
They make sure that proper directions are set
and that the right resources are available to
accomplish them.
Types Of Control
o Concurrent
Focus on what happen during the work process. Some
times called steering controls, they monitor on going
operations and activities to make sure that things are
being done correctly.
Types Of Control
o Post action
Sometimes called feedback controls they take place
after an action is completed. They focus on end results,
as opposed to inputs and activities.
Types Of Control
Managers have two broad option with respect to
control.
o They can rely on people to exercise self
control(internal) over their own behavior.
o Alternatively managers can take direct
action(external) to control the behavior of others.
Types Of Control
o Internal Controls
Allows motivated individuals to exercise self-control
in fulfilling job expectations.
The potential for self control is enhanced when
capable people have clear performances objectives and
proper resource support.
Types Of Control
o External Controls
It occurs to personal supervision and use of formal
administrative systems.
Performance appraisal system, compensation and
benefit system, employee discipline systems, and
management by objectives.
Organizational Control Systems
o Management Processes
1) Strategy and objectives.
2) Policies and procedures.
3) Selection and training.
4) Performance appraisal.
5) Job design and work structures.
6) Performance, modeling norms and organization
cultures.
Organizational Control Systems
o Compensation And Benefits
Attract talented employee and retain them.
Motivate people to exert maximum effort in their
work.
Recognize the value of their performance and
contribution.
Organizational Control Systems
o Employee Discipline
Discipline is defined as influencing behavior through
reprimand.
Progressive discipline ties reprimand to the severity
and frequency of the employees infraction.
Positive discipline tries to involve people more
positively and directly in making decisions to improve
their behaviors.
Organizational Control Systems
o Information And Financial
Activity based costing - the true cost of all product
and services.
Economic value added – examine the value added by
all activities.
Understand the implications of key financial
measures of(ratios) organizational performance.
Operations Management And Controls
o Purchasing
Economic Order Quantity
automatic reorder points
Just In Time Scheduling
Operations Management And Controls
o Project Management
Program evaluation and review technique(PERT) –
Identifies and control the many separate events in
complex projects.
Operations Management And Controls
o Statistical Quality Control
Based on the establishments of upper and lower
control limits, that can be graphically and statistically
monitored to ensure that products meets standards.
Advantages of controlling
1) An insurance towards the attainment of enterprises objective.
2) Improve managerial decision making.
3) Maximum production at minimum cost
4) Moral check on employees.
5) Judging managerial competence.
6) Add to delegation and decentralization of authority.
7) Betterment of future performance.
8) Avoiding industrial accidents.
9) Aid to co-ordination.
10) Guide to effective supervision.
Limitation of controlling
1) Difficulty in setting rational standard.
2) No control over external factors.
3) Expensive.
4) Difficulty in pinpointing responsibility for deviation.
5) Resistance to controlling system by employees.
6) Controlling system getting obsolete.
7) A post- mortem of event.
8) Misleading reports by lower managerial staff.
