DEFINITION AND NATURE OF

MANAGEMENT CONTROL
PART ONE
 DEFINITION

ACTIVITIES
CONTENTS
NATURE OF
MANAGEMENT CONTROL
DEFINITION OF
MANAGEMENT
CONTROL
 Management control
describes the means by which
the actions of individuals or
groups within an organization
MANAGEMENT
CONTROL are constrained to perform
certain actions while avoiding
other actions to achieve
organizational goals.
 Management control
is the process by which
managers influence other
MANAGEMENT members of the
CONTROL
organization to implement
the organization’s
strategies.
MANAGEMENT
CONTROL
ACTIVTIES
 Planning what the organization
should do
Coordinating the activities of
MANAGEMENT several parts of the organization
CONTROL
ACTIVITIES Communicating information
Efficient and effective
performance of individual tasks
Strategy
 Formulation Management
control
Evaluating information
MANAGEMENT
CONTROL Deciding what, if any, action
ACTIVITIES should be taken
Influencing people to change
their behaviour
 NATURE OF
MANAGEMENT CONTROL
 1. Control is a Function of
Management:

Control is a follow-up action to

NATURE OF the other functions of
MANAGEMENT
CONTROL management performed by
managers to control the
activities assigned to them in the
organisation.
 2. Control is Based on Planning:

Control is designed to evaluate

actual performance against
NATURE OF predetermined standards set-up
MANAGEMENT
CONTROL in the organisation. Plans serve as
the standards of desired
performance.
 2. Control is Based on Planning:

Planning sets the course in the

organisation and control ensures
NATURE OF action according to the chosen
MANAGEMENT
CONTROL course of action in the
organisation.
 3. Control is a Dynamic Process:

It involves continuous review of

standards of performance and
NATURE OF results in corrective action, which
MANAGEMENT
CONTROL may lead to changes in other
functions of management
 4. Information is the Guide to
Control:

Control depends upon the

NATURE OF information regarding actual
MANAGEMENT
CONTROL performance. Accurate and timely
availability of feedback is essential
for effective control action.
 4. Information is the Guide to
Control:

An efficient system of reporting is

NATURE OF required for a sound control
MANAGEMENT
CONTROL system. This requires continuing
monitoring and review of
operations.
 5. The Essence of Control is Action:

The performance of control is

achieved only when corrective
NATURE OF action is taken on the basis of
MANAGEMENT
CONTROL feedback information.
 5. The Essence of Control is Action:

It is only action, which adjust

performance to predetermined
NATURE OF standards whenever deviations
MANAGEMENT
CONTROL occur. A good system of control
facilities timely action so that there
is minimum waste of time and
energy.
 6. It is a Continuous Activity:

Control is not a one-step process

but a continuous process. It
NATURE OF involves constant revision and
MANAGEMENT
CONTROL analysis of standards resulting
from the deviations between
actual and planned performance.
 7. Delegation is the key to Control:

An executive can take corrective

action only when he has been
NATURE OF delegated necessary authority for
MANAGEMENT
CONTROL it. A person has authority to
control these functions for which
he is directly accountable.
 7. Delegation is the key to Control:

Moreover, control becomes

necessary when authority is
NATURE OF delegated because the delegator
MANAGEMENT
CONTROL remains responsible for the duty.
Control standards help a manger
expand his span of management.
 8. Control Aims at Future:

Control involves the comparison

between actual and standards. So
NATURE OF corrective action is designed to
MANAGEMENT
CONTROL improve performance in future.
 9. Control is a Universal Function of
Management:

Control is a basic or primary function

NATURE OF
of management. Every manager has to
MANAGEMENT exercise control over the subordinates’
CONTROL performance, no manager can get
things done without the process of
controlling.
 9. Control is a Universal Function of
Management:

Once a plan becomes operational,

NATURE OF follow-up action is required to
MANAGEMENT measure progress, to uncover
CONTROL
deficiencies and to take corrective
actions.
 9. Control is a Universal Function of
Management:

Therefore, control is an essential

NATURE OF managerial function at every level.
MANAGEMENT The process of management is
CONTROL
incomplete without controlling.
 10. Controlling is Positive:

The function of controlling is

positive. It is to make things
NATURE OF happen i.e. to achieve the goal
MANAGEMENT
CONTROL with instead constraints, or by
means of the planned activities.
 10. Controlling is Positive:

Controlling should never be

viewed as being negative in
NATURE OF
MANAGEMENT character.
CONTROL
THANK YOU