Professional Documents
Culture Documents
The next step in the controlling process relates to the measurement of the
actual performance of the personnel.
Some of the points, in this context, to be observed by management are as
follows:
(a) Measurement of actual performance must be done in the same terms- in
which standards have been laid down; so that comparisons are easier and
meaningful.
(b) Qualitative aspects of performance must be as much quantified, as
reasonably possible.
(c) There must be a regular and systematic arrangement for measurement of
performance. Performance measured casually and unsystematically would not
much help in making good comparisons; and deriving meaningful conclusions
from such comparisons.
(iii) Comparison of Actual Performance against
Standards; and Locating Deviations:
• While making a comparison of actual performance
against standards with a view to locating deviations; the
management must, first of all, decide about a ‘standard
deviation’ for various aspect of performance.
• ‘Standard deviation’ a statistical technique of
measuring dispersion implies the permissible range of
deviations i.e. deviations falling within standard
deviations limits must be ignored.
• Some deviations might be of a positive nature; and need be
applauded and encouraged.
• For example, a reduction in the cost below the standard or an
increase in sales over the targeted standard, are instances of
deviations, which are healthy symptoms of organizational
operational life.
• Apart from standard deviations and healthy deviations; all
other deviations must be carefully and systematically
controlled
(iv) Analysing the Causes of Deviations:
(a) External environment factors e.g. changes in prices or changes in
governmental policies regarding raw-material allocations, hours of work of
employees etc. Factors like intense competition or changing social values
having a bearing on sales-figures are also included in the category of external
factors.
(b) Internal environmental factors e.g. inadequacy of production facilities,
outdated or substandard technology, deteriorating human relations etc.
(c) Imperfections in planning, like vague objectives, inappropriate courses of
action, etc.
(d) Organisational defects, like lack of precise functional definitions of jobs,
improper span of management, imbalance between authority and
responsibility, etc.
(e) Staffing defects, like, faulty selection of employees, inappropriate
placements, lack of or inadequate training programmes etc.
(f) Flaws in directing techniques, like lack of free-flow of communication,
unsuitable leadership style, careless supervision, inadequate motivation etc.
(v) Undertaking Suitable Remedial Action:
• The final step in the controlling process is undertaking
suitable remedial or corrective action (based on the
analyses of causes of deviations); to bring performance
back on the planned track.
• While undertaking remedial action, the management
must have a strategy to introduce changes in the internal
environment; as it cannot do much about external
environmental factors.
• The basic management philosophy in this regard being
that only the controllable factors or situations can be and
must be controlled; the uncontrollable things better left
to their natural course.
The remedial action, might involve one or more
of the following actions:
(a) Betterment of internal environment; like ensuring
adequacy of production facilities, acquisition of superior
technology, taking steps for improving human relations
etc.
(b) Modifications or improvements in planning, like
expressing objectives clearly, more scientific
determination of standards, making a better choice
among alternative courses of action etc.
(c) Organisational restructuring like making the
organizational structure more compact through co-
ordination of jobs, replanting span of management,
striking a better balance between authority and
responsibility etc.
(d) Overcoming staffing defects e.g. through better
selection procedures, careful placements, better
organization of training programmes etc.
(e) Betterment of directing techniques e.g. adopting
democratic styles of leadership, exercising more careful
supervision, insisting on communication feedback or
introducing better motivational schemes, etc.
Essentials of Effective Control system
1. Simplicity
2. Objectivity
3. Promptness
4. Economy
5. Flexibility
6. Accuracy
7. Suitability
8. Forward-looking Nature
9. Focus on Strategic Points
10. Motivating and Others.
1. Simplicity:
A good control system must be simple and easily understandable so that all
the managers can apply it effectively.
Complicated control techniques fail to communicate the meaning of
control data to the managers.
2. Objectivity:
The standards of performance should be objective and specific, quantified
and verifiable. They should be based on the facts so that control is
acceptable and workable.
3. Promptness:
The control system should provide information soon enough so that the
managers can detect and report the deviations promptly and necessary
corrective actions may be taken in proper time. Corrective measures are of
no value if those are taken too late.
4. Economy:
The control system must justify the expenses involved. In other words,
anticipated earnings from it should be greater than the expected costs in its
working. A small organisation cannot use the expensive control technique
applied in large enterprises.
5. Flexibility:
Internal goals and strategies must be responsive to the changes in the
environment and the control system should be flexible enough to adapt the
changing conditions or unforeseen situations. It should be adaptable to the
new developments. Flexibility in control system can be introduced by making
alternative plans.
6. Accuracy:
The control system should encourage accurate information in order to detect
deviations. The technique of control used should be appropriate to the work
being controlled.
7. Suitability:
Control must reflect the needs and nature of the activities of the
organisation, The control system should focus on achieving the
organisational goals.
8. Forward-looking Nature:
The control system must be directed towards the future. It must pay
attention on how the future actions can be conformed with the plans
adopted.
9. Focus on Strategic Points:
The control system should focus attention on strategic or critical
deviations. Only exceptional deviations require the attention of the
managers
Techniques of Controlling
1. Personal Observation:
• The simplest way to control organisational activities
is that managers take round at the work place and
observe the progress of the work.
• Any defect in performance can be spotted and
corrected immediately.
• A face-to-face interaction is possible where workers
get their doubts solved on-the-job and guidance and
counselling can also be provided there and then.
• This method creates psychological pressure on the
employees and they perform better when they know
they are being observed by their superiors.
• Managers can also know the behavioural, technical and
psychological problems that workers are facing at the
work place and they try to overcome these problems.
• However, this method demotivates the employees who
work under psychological pressure of being constantly
watched.
• This method is also not suitable for large-scale
organisations where managers cannot spend time in
personally observing the performance of each worker.
2. Budgeting:
• A budget is a statement which reflects future incomes,
expenditures and profits that can be earned by a firm.
• It is a future projection of the firm’s financial position. Non-
financial aspects like units produced, units sold, unit cost of
material and labour etc. can also be important components of a
budget.
• Budget is “the process of stating in quantitative terms, planned
organisational activities for a given period of time.”
• Budgeting control refers to comparison of actual performance
with planned or budgeted performance.
• It is a basic technique of control and is used at every level of
organisation. Budgets are prepared for the organisation as a
whole and for each departmental unit.
3. Break-Even Analysis:
• Break-even analysis or cost-volume-profit analysis
defines the relationship between sales volume, costs and
profits to arrive at a figure of sales at which sales
revenue is equal to cost.
• The point at which sales revenue is equal to cost (fixed
cost plus variable cost) is the break-even point.
• Sales beyond the break-even point will earn profits for
the organisation and sales below the break-even point is
a situation of loss.
4. Financial Statements:
• Financial statements depict financial position of the firm
over a period of time, generally one year.
• The statements are prepared along with last year’s
statements so that firm can compare present
performance with last year’s performance and take
action to improve its future performance.
• As these statements are prepared at the end of the
financial year, as a measure of control, they guide
managers to improve future performance.
These statements provide information on the following
aspects:
1. Liquidity – The firm can know how much cash it has to meet its
financial liabilities.
2. Financial strength – It represents assets, liabilities and equity
position of the firm.
3. Profitability – The excess of revenue over cost represents profit
of the firm.
5. Statistical Data and Reports:
• Data helps in applying statistical techniques of averages,
regression, correlation etc. to predict financial
performance.
• Data can be used for diagrammatic representations like
trend charts, histograms, pie charts, and bar graphs etc.
which assess the company’s performance.
• Deviations can be pointed out and corrected.
• Report is a statement that represents data in the form of
information for carrying out the controlling function.
• Statistical data and regular reporting system
provide information about company’s financial
and non-financial performance.
• A supervisor, for example, prepares a special
report on how the salesmen are dealing with
customers.
• This report helps managers to control the
behavioural attitudes of salesmen to develop a
good clientele.
Modern Techniques of Control:
1. Management Information System (MIS):
“MIS is a formal system of gathering, integrating, comparing, analysing
and dispersing information internal and external to the enterprise in a
timely, effective and efficient manner” — Weihrich and Koontz
2. Management Audit:
Audit means periodic inspection of financial statements and verifying that
the statements are honestly and fairly prepared according to accounting
principles. An audit, thus, provides a basis for control.
3. Responsibility Accounting:
It divides the organisation into smaller units where each unit is headed
by a manager who is responsible for achieving the targets of his unit.
4. Network Techniques (PERT and CPM):
a. PERT-Programme Evaluation and Review Technique:
PERT is also called time-event network. It is a technique
used to plan and control a complex project that is
represented as a network of events and activities, with time
estimates given to complete each activity.
b. CPM – Critical Path Method:
CPM determines critical activities for completing the
project, assumes expected time as the time taken to
complete the project and concentrates on this critical
sequence of activities to optimise the use of time and
resources.
5. Balanced Score Card:
Balanced score card is “a performance measurement tool that looks at four areas —
financial, customer, internal processes and people/innovation/growth assets — that
contribute to a company’s performance.”
6. Ratio Analysis:
Financial statements show financial performance in absolute figures.
Ratio is a numerical relationship between two numbers. Ratio analysis draws
comparison between selected items from the financial statements in percentages or
fractions and assesses financial performance of the firm.
7. Economic Value Added (EVA):
Value added is an important tool to measure financial performance of a company. It
indicates net wealth or value created by the company.
8. Market Value Added (MVA):
Market value added is “a financial tool that measures the stock market’s estimate of
the value of a firm’s past and expected investment projects.”
Coordination – Meaning and Definitions
Physical Barriers
Physical barriers are easy to spot - doors that are closed,
walls that are erected, and distance between people all
work against the goal of effective communication. While
most agree that people need their own personal areas in
the workplace, setting up an office to remove physical
barriers is the first step towards opening communication.
Noise – noise in a factory, external disturbances in telecom
facilities, poor writing, bad photo-copies, etc.,
Time and Distance – if telecom and network facilities are
not available, people working in different shifts, faulty
seating arrangement in the hall, etc.,
Poor timing – particularly if it is close to a deadline.
Overcoming Physical Barriers
To overcome physical barriers within the workplace, here are some
helpful hints:
• If you send a lot of email or digital messages, make sure you are
surgical in your word choice.
• Choosing the correct words and stamping out ambiguity is the
only step to making communication more effective.
• Face-to-face communication is far superior for most people,
especially once the connection has already been made.
• Video conferencing adoption is increasing as enterprises turn to
higher-quality, lower-cost video technology to improve workforce
collaboration and reduce reliance on travel.
SEMANTIC BARRIERS
Semantic Communication:
Semantic is basically the study of meaning. In
communication semantic can be for words, symbols,
language signs etc. It is very important to denote an exact
meaning to a word otherwise it can lead to
miscommunication.
Semantic barrier to communication may arise if the word
by the sender is not chosen adequately so as it did not
clarify the intent of the sender and thus is misinterpreted by
the receiver.
SEMANTIC BARRIERS OCCURS DUE TO FOLLOWING REASON:
INTERPRETATION OF WORDS: Most of the communication is carried out
through words, whether spoken or written. words are capable of
communicating a variety of the meanings. It is quite possible that the word
as the transmitter had intended. This may leads to miscommunication.
For e.g. ; ‘RUN’ has 71 meaning as a verb, another 35 as a noun, and 4
more as an adjective.... but if communication is to be perfect, he must
assign to it he same meaning as existed in the sender's mind when he used
it.
Cultural Barriers
• Different cultures, whether they be a societal culture of a race or simply the
work culture of a company, can hinder developed communication if two different
cultures clash.
• In these cases, it is important to find a common ground to work from. In work
situations, identifying a problem and coming up with a highly efficient way to
solve it can quickly topple any cultural or institutional barriers. Quite simply,
people like results.
Examples of cultural barriers that prevent individuals from effective communication
include:
Generational - Each age group has a different general approach to work, which
often leads to conflicts with older workers describing younger workers as
"slackers," and younger workers criticizing older workers as being "out of touch."
Status and Resistance - Workers who are accustomed to workplaces where
seniority and status are emphasized may find it difficult to adapt to more fluid
environments, where job titles are de-emphasized and production methods do not
always follow a predetermined set of guidelines.
Language Barriers
Language barriers :If you work in an industry that is heavy in jargon or
technical language, care should be taken to avoid these words when speaking
with someone from outside the industry.
Examples of language barriers that prevent individuals from effective
communication include:
Dialects - While two people may technically speak the same language,
dialectal differences can make communication between them difficult.
Examples of dialectical language barriers exist worldwide. Chinese, for
example, has a variety of dialects that are commonly spoken, including
Cantonese and Mandarin.
Language Disabilities - Language disabilities are physical impediments to
language. Physical language disabilities that cause language barriers include
stuttering(talk with continued involuntary repetition of sounds), dysphonia
(difficulty in speaking due to a physical disorder of the mouth, tongue, throat,
or vocal cords.) or an articulation(he formation of clear and distinct sounds in
speech.)disorder and hearing loss.
Overcoming Cultural Barriers
To overcome cultural barriers within the workplace, here are some helpful hints:
• Determine whether a specific behavior or attribute is a requirement of
the job. There are some cultural differences with your employees that you just
have to accept and not try to change if you want your employees to perform
well.
• Identify whether or not you can reasonably accommodate the cultural
difference. Some cultural differences - such as an employee's willingness to
confront her boss - can be accommodated by slightly altering the expectation
or changing the circumstances of the situation.
• For example, some cultures are not responsive to stern feedback, but they are
receptive to less direct insinuations regarding their performance. If you ask
your employees they will tell you how best to communicate with them without
violating their cultural norms.
Determine how best to accommodate the cultural difference. Some
cultures are group-centric rather than individually focused. In such cases
praising an individual for their effort, rather than recognizing the entire group,
can create contention among the group and embarrassment for the
individual, thereby decreasing the employee's performance instead of
enhancing it.
Learn about other cultures. There are numerous excellent books and
articles on cultural diversity in your local bookstore or library. The internet is
a valuable tool of unlimited resources explaining the differences in cultures.
There is no excuse for your not understanding the cultural issues of your
employees when you have so much information literally at your fingertips.
Ask your employees for insight into how best to manage them. If you
show an open and honest willingness to learn and to adjust your
management practices, most of your employees will tell you how to
accommodate their cultural needs if you ask them.
Perceptual barriers :
If you go into a situation thinking that the person you are talking to isn't going to
understand or be interested in what you have to say, you may end up subconsciously
sabotaging your effort to make your point. You will employ language that is sarcastic,
dismissive, or even obtuse, thereby alienating your conversational partner.
Think of movie scenarios in which someone yells clipped phrases at a person they
believe is deaf. The person yelling ends up looking ridiculous while failing to communicate
anything of substance.
Examples of perceptual barriers that prevent individuals from effective communication
include:
Perceptual Filters - We all have our own preferences, values, attitudes, origins and life
experiences that act as "filters" on our experiences of people, events and information.
Seeing things through the lens of our own unique life experiences or "conditioning" may
lead to assumptions, stereotyping and misunderstandings of others whose experiences
differ from our own.
Triggers and Cues - What we say is affected by how we say it (tone, volume) and by our
nonverbal cues, such as body language and facial gestures. For example, you may
perceive a situation differently if the person you are speaking with is smiling or frowning,
has body odour and is standing too close or is not giving you direct eye contact.
Overcoming Perceptual Barriers
To overcome perceptual barriers within the workplace, there are a few things you
can do:
• The audience may make assumptions about you or the situation; perhaps you
are new to the organization, or the situation is a challenging one.
• To get your message past these barriers, provide evidence to support your
claims and enhance your credibility.
• Effective communication relies on being aware of nonverbal aspects of
interactions with others.
• It is equally important to be aware of one's own nonverbal behaviours and be
sensitive to how they may be perceived. For instance, maintaining eye
contact when communicating indicates interest. Staring out the window or
around the room is often perceived as boredom or disrespect.
Interpersonal Barriers
https://www.yourarticlelibrary.com/management/controlling/controlling-concepts-feature
s-and-steps-with-diagram/69939
https://www.economicsdiscussion.net/management/coordination/techniques-of-coordin
ation-in-management/31480