Controlling as a function of

Management

Session 5: Prof.Parveen Kaur

Agenda

▪ What is Controlling ?
▪ Why we need controlling in organizations ?
▪ Process of Control
▪ Types of Control
▪ Cadbury Case study
 A process of monitoring
“ performance, comparing
with goals, and
correcting work
performance as needed to
make sure performance
meets objectives
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 Control Feedback Loop

Planning
Planning

CHANGES IN
FEEDBACK

Control
Control
Organizing
Organizing

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The Control Process
The Control Process

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Establishing Standards
 Compare performance against
Standards.

“An attempt to control everything results in controlling nothing”

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 Defining
Defining acceptable
acceptable Range
Range of Variations
of Variations
Importance and Magnitude of deviation needs
to be judged.

120 Acceptable
Upper limit

Acceptable
90 Standard Range Of
Variation
Acceptable
60 Lower limit

t t+1 t+2 t+3 t+4 t+5

 Management by Exceptions
When the deviations are analyzed only those major
or exceptional, significant deviations should be
communicated to the Top Management

Mangerial Judgement is the core issue

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Evaluate results and
take actions

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Types of Corrective Actions

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 Actual Performance Reinforcing action taken
Reinforcing action taken
better than expected (e.g.
(e.g.Increase
Increaserewards,
rewards,
Consider
Consider increaseinin
increase
production,
production,add
addnew
new
product line.
product line.
Actual Performance
Actual Performance
measured against Gap Detected
measured against Gap Detected
standards for performance
standards for performance

Corrective Action Taken.

Corrective Action Taken.
(e.g.
(e.g.Increase
IncreaseTraining,
Training,
Modify Supervision,
Modify Supervision,
invest
investininnewer
newer
Actual Performance equipment)
equipment)
worse than expected
Forms of Control

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Forms of control
Stages of the control process

McDonalds MBWA
a. Feedforward control
b. Feedback control
c. Concurrent Control
K&K Co. Ltd. is engaged in manufacturing of
machine components. The target of production is
200 units daily. The company had been successfully
attaining this target until two months ago. Over the
last two months it has been observed that daily
production varies between 150-170 units. Identify
the possible causes for the decline in production and
the steps to be taken to achieve the desired targets.
The possible causes for decline in production are-
▪ 1.There may be some defect in machinery by which the components are
produced.
▪ 2. Employees are not performing efficiently.
▪ 3. Sometimes employees may become lethargic.
The company can take the following steps to achieve the desired targets-
▪ 1. Company can replace the machinery or get repaired, if fault is in
machine.
▪ 2. If employees are not performing efficiently, the company can give
training to employees.
▪ 3. If employees are becoming lethargic, the company needs to keep a
close supervision on their employees.
Cadbury and the Worm Controversy

https://simconblog.wordpress.com/2016/06/19/cadbury-case-s
tudy-analysis/com/money/2006/dec/24cad.htm

https://economictimes.indiatimes.com/between-the-lines-cadburys-
deworming-trick/articleshow/12125092.cms

https://www.youtube.com/watch?v=eeO1BAo35js
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Thanks!

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