planning, organizing staffing

directing

check the errors

corrective action

achieved in a
desired manner
Control in management
Control techniques
or
methods are genera
lly
described as either
quantitative or
• use data and various quantitative tools to
monitor and control production output.
• the most widely recognized quantitative
tool is the chart. Charts used as control
tools normally contrast time and
performance. The visual impact of a chart
often provides the quickest method of
relating data. A difference in numbers is
much more noticeable when displayed
Two common quantitative tools:
• the best known control device
• is an instrument of planning, management, and
control.
• An organization’s budget is an expression in
financial terms of a plan for meeting the
organization’s goals for a specific period.
• First, we use them as established facts that must
be factored into our operational planning. Second,
we use them to prepare narrative descriptions and
financial information that our chain of
command uses in its annual request and
management of its funds.
• measures and evaluates the effectiveness of
management controls.
• Internal auditing provides an independent
review and appraisal of accounting ,financial,
and other nontactical operations.
• Naval Audit Service provides an independent
audit of programs ,activities , systems, and
procedures. It also provides an independent
audit of other operations involving the use of
funds and resources and the accomplishment
of management goals.
• refer to total or overall control of
performance rather than
specific processes.
• These methods use tools such as
inspections, reports, direct
supervision , and performance
evaluation/counseling to
accomplish goals.
manages, commands,
directs, or regulates the
behavior of other devices
or systems
using
control loops
 In a general sense, these systems
are put in place so that an organization is
sure to be consistently checking on its
performance and goal alignment. One of
the main benefits of having control
systems is communicating goals and
objectives to the business and ensuring
that managers in the business understand
their role in achieving them.
Techniques
- is a costing methodology that
identifies activities in an organization
and assigns the cost of each activity
with resources to all products and
services according to the actual
consumption by each. This model
assigns more indirect costs (overhead)
into direct costs compared to
- is a strategy performance management
tool
- a semi-standard structured report,
supported by design methods and
automation tools, that can be used by
managers to keep track of the execution
of activities by the staff within their
• is comparing one’s business processes and
performance metrics to industry bests and
best practices from other companies.
• In the process of best practice
benchmarking, management identifies the
best firms in their industry, or in another
industry where similar processes exist,
and compares the results and processes of
those studied (the “targets” ) to one’s own
Benchmarking
is used to measure performance
using a specific indicator (cost per
unit of measure, productivity per unit of
measure, cycle time of x per unit of
measure or defects per unit of measure)
resulting in a metric of
performance that is then
compared to others.
Budget is a quantitative expression of
a plan for a defined period of time. It
may include planned sales volumes and
revenues, resource quantities, costs and
expenses, assets, liabilities and cash
flows. It expresses strategic plans of
business units, organizations, activities or
events in measurable terms.
Also known as “investment appraisal”
• is the planning process used to determine
whether an organization’s long term
investments such as new machinery,
replacement of machinery, new plants, new
products, and research development
projects are worth the funding of cash
through the firm’s capitalization structure
(debt, equity or retained earnings).
• It is the process of allocating
resources for major capital, or
investment, expenditures.
• One of the primary goals of
capital budgeting investments
is to increase the value of
the firm to the
shareholders.
• Just-in-time (JIT) manufacturing
• also known as just-in-time production or
the Toyota production system (TPS)
• a methodology aimed primarily at reducing
flow times within production system as well
as response times from suppliers and to
customers. Following its origin and
development in Japan, largely in the 1960s
and 1970s and particularly at Toyota.
 Kaizen, 改善, Japanese for
“improvement.”
When used in the business sense and
applied to the workplace, kaizen refers to
activities that continuously improve all
functions and involve all employees from
the CEO to the assembly line workers.
• It also applies to processes, such as
purchasing and logistics, that cross
organizational boundaries into the
supply chain.
• It has been applied in
healthcare, psychotherapy, life-
coaching, government, banking,
fantasy hockey, and other
industries.
• is an approach to determine a product’s
life-cycle cost which should be sufficient
to develop specified functionality
and quality, while ensuring its
desired profit.
• It involves setting a target cost by
subtracting a desired profit margin
from a competitive market price.
• A target cost is the maximum amount
of cost that can be incurred on a
product, however, the firm can still
earn the required profit margin from
that product at a particular selling
price.
• Target costing decomposes the
target cost from product level to
component level.
• consists of organization-wide efforts to
install and make permanent a climate in
which an organization continuously
improves its ability to deliver high-quality
products and services to customers. While
there is no widely agreed-upon approach,
TQM efforts typically draw heavily on the
previously developed tools and techniques