CONTROLLING

CONTROLLING

“Controlling is checking performance

against predetermined standards
contained in the plans with a view to
ensuring adequate progress and
satisfactory performance.”
 NATURE OF CONTROLLING:

1. Control is a Function of Management:

2. Control is Based on Planning:
3. Control is a Dynamic Process:
4. Information is the Guide to Control:
5. The Essence of Control is Action:
6. It is a Continuous Activity:
7. Delegation is the key to Control:
 IMPORTANCE OF CONTROLLING

1. Control provides the basis for future action in the

organization
2. Control facilities decision making in the organization
3. An effective system of control facilities
decentralization of authority
4. Control and planning go hand in hand in the
organization
5. The existence of a control system has a positive
impact
6. Control helps in coordination of the activities
 PROCESS

1. Establishing goals and standards

2. Measuring actual performance
against goals and standards
3. Taking corrective action
4. Following up on corrective action
 TECHNIQUES OF CONTROLLING

Traditional

Personal Observation
Budgeting
Break-Even Analysis
Financial Statements
 MODERN

Management Information System (MIS):

Management Audit
Responsibility Accounting
Network Techniques (PERT and CPM):
Balanced Score Card
Ratio Analysis:
Economic Value Added (EVA):
Market Value Added (MVA):