UNIT 6

CONTROLLING
CONCEPT OF CONTROLLING

 Managerial function which seeks to ensure an absolute conformity of actual

performance of organisational
 Controlling can be defined as that function of management which helps to seek
planned results from the subordinates, managers and at all levels of an
organization.
  ”It aims at ensuring that the resources of the organisation are used
effectively and efficiently for the achievement of pre-determined
organisational goals”
PROCESS OF CONTROLLING
TECHNIQUES OF CONTROLLING
CONTROL AS FEEDBACK SYSTEM

 Feedback control is a process that managers can use to evaluate how

effectively their teams meet the stated goals at the end of a production
process. Feedback control evaluates the team's progress by comparing the
output the team was planning on producing to what was actually produced.
TYPES OF CONTROL

 Feed forward control - The basic concept of feedforward control is to

measure important disturbance variables and take corrective action before
they upset the process
 Preventive control - Preventive controls aim to decrease the chance of
errors and fraud before they occur, and often revolve around the concept of
separation of duties.
 Profit & Loss control - It is the process of monitoring, recording, and
directing a business's revenue and spending. P&L management includes
activities like revenue retention and optimization, customer churn, pricing,
and managing cash flow.
 ROI - A calculation of the monetary value of an investment versus its cost.
USE OF COMPUTER IN CONTROLLING AND
DECESION MAKING