The system and process of controlling

Controlling:
“Is the measurement and correction of
performance in order to make sure that
enterprise objectives and plans devised to
attain them are being accomplished”.
 The basic control process
 Establishingstandards
 Measuring performance against these
standards
 Correcting variations from standards and
plans
 Critical control points, standards and
Bench marking
Types of critical-point standards
 Physical standards
 Cost standards
 Capital standards
 Revenue standards
 Program standards
 Intangible standards
 Goal as standards
 Strategic Controls

It comprises systematic monitoring at strategic

control points as well as modifying organization’s
strategies on the basis of this evaluation.
 BENCH MARKING

It is an approach for setting goals and productivity

measures based on best industry practices.
Types of benchmarking:
 Strategic benchmarking
 Operational benchmarking
 Management benchmarking
 Real-Time information and control

This is information about what is happening

while it is happening. By the use of the
computer and from electronic gathering,
transmission and storage of data to develop
a system of real time information.
 Control as a feedback system
Process
Desired performance Implementation

Actual performance Corrective action

Measurement of actual Analysis of causes of

Performance deviation

Comparison of actual With Identification of deviations

standards
 Feed forward control

Control can be effective if it is directed towards the

future.
Mangers need to have a system that will tell them in
time to corrective action.
 Requirement for feed back control
 Make a thorough and careful analysis of the planning and
control system and identify more important input variables
 Develop a model of system
 Take care to keep the model update
 Collect data on input variables regularly and put them in to
system
 Regularly asses the variations of actual input data from
planned-for inputs and evaluate on the expected end results
 Take action to solve them
 Requirements for effective control
 Tailoring controls to plans and positions
 Tailoring controls to individual managers
 Designing controls to point up exceptions at critical points
 Seeking objectivity of controls
 Ensuring flexibility of controls
 Fitting the control system to the organizational culture
 Achieving economy of controls
 Establishing controls that lead to corrective action