DEFINITION AND NATURE OF

MANAGEMENT CONTROL
PART ONE
 DEFINITION

ACTIVITIES
CONTENTS
NATURE OF
MANAGEMENT
CONTROL
DEFINITION
OF
MANAGEME
 Management control descri
bes the means by which the acti
ons of individuals or groups withi
n an organization are constraine
MANAGEMENT C
ONTROL d to perform certain actions whil
e avoiding other actions to achie
ve organizational goals.
 Management control is
the process by which mana
gers influence other memb
MANAGEMENT C ers of the organization to i
ONTROL
mplement the organizatio
n’s strategies.
MANAGEME
NT
 Planning what the organization s
hould do
Coordinating the activities of sev
MANAGEMENT CONT eral parts of the organization
ROL
ACTIVITIES Communicating information
Efficient and effective performan
ce of individual tasks
Strategy
 Formulation Management contro
l
Evaluating information
MANAGEMENT CONT
ROL Deciding what, if any, action sho
ACTIVITIES uld be taken
Influencing people to change thei
r behaviour
 NATURE OF
MANAGEMENT
CONTROL
 1. Control is a Function of Ma
nagement:

Control is a follow-up action to t

NATURE OF he other functions of manageme
MANAGEMENT CONT
ROL nt performed by managers to co
ntrol the activities assigned to th
em in the organisation.
 2. Control is Based on Planning:

Control is designed to evaluate act

ual performance against predeter
NATURE OF mined standards set-up in the org
MANAGEMENT CONT
ROL anisation. Plans serve as the stand
ards of desired performance.
 2. Control is Based on Planning:

Planning sets the course in the org

anisation and control ensures acti
NATURE OF on according to the chosen course
MANAGEMENT CONT
ROL of action in the organisation.
 3. Control is a Dynamic Process:

It involves continuous review of sta

ndards of performance and results i
NATURE OF n corrective action, which may lead
MANAGEMENT CONT
ROL to changes in other functions of ma
nagement
 4. Information is the Guide to Contr
ol:

Control depends upon the informati

NATURE OF on regarding actual performance. A
MANAGEMENT CONT
ROL ccurate and timely availability of fe
edback is essential for effective con
trol action.
 4. Information is the Guide to Con
trol:

An efficient system of reporting is

NATURE OF required for a sound control syste
MANAGEMENT CONT
ROL m. This requires continuing monit
oring and review of operations.
 5. The Essence of Control is Action:

The performance of control is achi

eved only when corrective action is
NATURE OF taken on the basis of feedback info
MANAGEMENT CONT
ROL rmation.
 5. The Essence of Control is Action:

It is only action, which adjust perfo

rmance to predetermined standard
NATURE OF s whenever deviations occur. A goo
MANAGEMENT CONT
ROL d system of control facilities timely
action so that there is minimum wa
ste of time and energy.
 6. It is a Continuous Activity:

Control is not a one-step process

but a continuous process. It involv
NATURE OF es constant revision and analysis o
MANAGEMENT CONT
ROL f standards resulting from the devi
ations between actual and planne
d performance.
 7. Delegation is the key to Control:

An executive can take corrective a

ction only when he has been dele
NATURE OF gated necessary authority for it. A
MANAGEMENT CONT
ROL person has authority to control th
ese functions for which he is direc
tly accountable.
 7. Delegation is the key to Control:

Moreover, control becomes neces

sary when authority is delegated b
NATURE OF ecause the delegator remains resp
MANAGEMENT CONT
ROL onsible for the duty. Control stand
ards help a manger expand his spa
n of management.
 8. Control Aims at Future:

Control involves the comparison b

etween actual and standards. So c
NATURE OF orrective action is designed to imp
MANAGEMENT CONT
ROL rove performance in future.
 9. Control is a Universal Function of M
anagement:

Control is a basic or primary function o

NATURE OF
f management. Every manager has to e
MANAGEMENT CONT xercise control over the subordinates’
ROL performance, no manager can get thin
gs done without the process of controll
ing.
 9. Control is a Universal Function of M
anagement:

Once a plan becomes operational,

NATURE OF follow-up action is required to me
MANAGEMENT CONT asure progress, to uncover deficie
ROL
ncies and to take corrective action
s.
 9. Control is a Universal Function of M
anagement:

Therefore, control is an essential

NATURE OF managerial function at every level.
MANAGEMENT CONT The process of management is inc
ROL
omplete without controlling.
 10. Controlling is Positive:

The function of controlling is positi

ve. It is to make things happen i.e.
NATURE OF to achieve the goal with instead co
MANAGEMENT CONT
ROL nstraints, or by means of the plan
ned activities.
 10. Controlling is Positive:

Controlling should never be vie

wed as being negative in chara
NATURE OF
MANAGEMENT CONT cter.
ROL
THANK YOU