DIRECTING And

CONTROLLING
 Introduction
DIRECTING - refers to the ways and means
employed by management to encourage all
personnel in the business firm to accomplish all
assignments given to them.

CONTROLLING – the evaluation of the work

accomplished against plans to determine if it is
being carried out as planned.
The Concept of Directing
Process of initiating action in accordance with
what has been planned.
It is the process of:
Guiding
Motivating
Supervising
Leading
Influencing the personnel to attain the objectives
of the firm.
 Haimann

“Directing consists of the processes

and techniques utilized in issuing
instruction and making certain that
operates are carried on as originally
planned”.
 Koontz and O’Donnell

“Directing is a complex function that

includes all those actions which are
designed to encourage subordinates to
work effectively and efficiently in both
short-range and long-range actions
respectively”
Ernest Dale

“Directing is telling people what to

do and seeing that they do it to the
best of their ability.”
 Urwick and Brech

“Directing is the guidance, the

inspiration, the leadership of those men
and women that constitute the real core
of the responsibility of management.”
 Marshal E. Dimock

“The heart of administration is directing

function which involves determining the
course, giving orders and instruction,
providing the dynamic leadership.”
CHARACTERISTICS OF DIRECTING

1.Directing is a management function

2.Directing is a pervasive function
3.Directing is a continuous process
4.Directing is a synergetic function
5.Directing is a dynamic function
The Importance of Directing

Directing is vital to get things done through

others
Directing initiates actions.
Directing executes plans and decisions.
Directing helps achieve coordination.
Directing helps develop future managers.
Directing helps attain objectives.
Directing facilitates effective organizational
change.
Directing creates work environment.
Directing motivates and mobilizes personnel.
Directing provides stability and growth of firm.
 The Concept of Controlling

Another important function of management.

Function that tries to ensure all action and
activities are conformity with the plans and
objectives of the firm.
Massie

“Controlling is a process that measure

current performance and guides it towards
some predetermined goals.”
Philip Kotler

“Controlling is the process of taking steps

to bring actual results and desired result
closer together.”
 Henri Fayol

“Controlling consists of verifying whether

everything occurs in conformity with the plan
adopted, the instruction issued, and the
principles established.”
 Terry and Franklin

“Controlling is determining what is being

accomplished, that is, evaluating the
performance and, if necessary applying
corrective measures so that performance takes
place according to plans.”
 Robbins and Coulter

“controlling is the process of monitoring

activities to ensure that they are being
accomplished as planned and of correcting any
significant deviations.”
 Robert Albanese

Managerial controlling is the process of

assuring that actions are in line with desired
results.”
Process by which managers ensure that
performance is in conformity with the plans,
objectives and goals set forth by
management.
Characteristics of Controlling

 Management function
 All-pervasive function
 Universal process
 Continuous and unending process
 Involves dynamic process; it is not static
 Positive and constructive process
 Goal-oriented function of management
 Action-oriented function of management
 Forward-looking in a business operation
Controlling and planning are closely related.
These function of management can’t be
taken separately; they always together.

Controlling is not interfering with the works

and activities of others.
 Objectives of Effective Controlling

 To direct the activities according to plans

 To establish coordination between objectives, means and
efforts of the organization
 To know the progress of the activities on the basis standards
fixed
 To find out deviations and try to removed these deviations
 To get the knowledge regarding quality cost and time work
performed
 To regularized actions and behavior
To prevent dishonesty and establish order and
discipline
To maintain the flow of activities of the business
To stop wastage and to maintain the cost
To make decentralization and delegation of authority
successfully
To motivate and mobilize employees
To ensure efficient and effective use of organizational
resources
 Requirements of Effective Controlling

Serve the needs for which they are intended

Be economical to maximize profit
Be stable yet flexible to cope-up with the
changing needs of the firm
Identify changes or deviations
Be objective and free from any biases
Consider the organizational structure
Be properly understood by those who are to use
them
Be able to indicate future deviation from what
has been planned, in order to consider
corrective measures
Include several alternatives to correct
deviations
Promote unity, cooperation and goodwill
Controlling Process

 Establishment of Standards
 Measurement of Performance
 Comparison of performance with Standards
 Taking Corrective Action
Establishment of Standards

Noted that standards are the objectives or plans

against which actual performance can be best
measured. Standards should be Quantitative
and Qualitative
 5 classification of Standards

Productivity Standards – determine the

number of products or service to be produced in a
given period of time

Time Standards - determine the period of time

being allowed to produce certain number of
products and services to b e performed
Cost Standards – determine the amounts of
money needed in the production of products and
services

Quality Standards – sets the level of satisfaction

desired

Behavior Standards – state the desired type of

behavior of personnel in the firm
 Measurement of Performance

Actual performance can be measured through

personal observations, samples, reports,
financial statements and inspections.

To ensure the effectiveness of measurement

of performance, the standards should be clear,
complete, precise and objective.
Comparison of Performance Against Standards

The actual accomplishment is being compared

with the standards set forth, in order to check if
there are delays or deviations.
 Taking Corrective Action

Correction of deviations in the performance of

any given function or activity or task may be
made by modifying the plan either by changing
the number personnel or by better selection
and training of subordinates, or by changing
or adjusting the other factors of production.
Kinds of Techniques in Controlling

Conventional technique
Modern technique
 Types of Conventional Techniques
Personal Observation
Setting as Model
Plans and Policies
Organizational charts and
Functional charts
Operation manuals
Disciplinary measures
Oral and written instruction
□ Statistical reports
□ Annual/monthly and
special reports
□ Records management
and evaluation
□ Financial statement
□ Audit system
□ Simple break-even
analysis
Standard costing
Budget operation management and control
Cash auditing
Inventory control
 Types of Modern Techniques

Return or Investment (ROI) – technique of

control of overall accomplishment of the firm. Based
on the assumption that the objectives and the goal of
the firm are not to maximize profits but to optimize
return on capital used.

Statistical formula in determining ROI is:

sales net-profit
ROI = ------------------- X -------------------
Total Investment Sales
 Management Audit

Systematic technique of evaluating the

operation and effectiveness of the
management of a firm. This audit is conducted
by independent auditor who are experts in
auditing. This is done yearly or periodically.
Management Information System

System of collecting, processing recording and

transmitting information needed by
management. The MIS is the center of facilities
and personnel for collecting, processing, storing
and transmitting information needed in
managing a firm.
Manager will use these data for strategic
planning, decision-making and controlling the
activities of the firm.
 Zero-Base Budgeting (ZBB)

Budgeting technique which does not consider

figures of previous fiscal year in the preparation
of a budget. It is expected that the budget of
the previous fiscal year has been all spent. It
simply takes into consideration the present
needs of the firm. Thus, facts of prevailing
conditions.
 PERT/CPM

Can be used to control the actions and

activities of the personnel. Program Evaluation
and Review Technique (PERT) and Critical Path
Method (CPM) are techniques that are based
on the same principle and with a hairline
differences.
 Limitations in Controlling

Difficulty of setting standards that can be applied

to all function and activities
Difficulty in determining standards qualifications of
personnel.
Influence of external pressure groups or individual.
Limited manpower experts to implement the
standards.
Strong opposition from personnel, for evaluating
their performances and activities.
Time consuming. You really need enough
time to study, evaluate and implement the
standard/s.
Difficulty in identifying responsible personnel
in any deviation/shortcoming.
No political will to implement the corrective
action.
Limited funds to set-up standards.