CONTROLLING

What gets measured happens

What is
important to
know about the
control What are
process? some
organizational
control
systems and
techniques?
CONTROLLING

Controlling is one of the four management

functions.
Control begins with objectives and standards.
Control measures actual performance.
Control compares results with objectives and
standards.
Control takes corrective action as needed.
Control focuses on work inputs, throughputs, and
outputs.
 WHY IS IT NEEDED?

*To cope with changes, internally and externally

*To facilitate delegation and teamwork
*To create better quality and add value

This will in turn, lead to:

*Judge accuracy of the standards that were set
*Improve performance
*Minimize undesirable behavior
 IMPORTANCE OF CONTROLLING

*Controls let managers know whether

their goals and plans are on target and
what future actions to take

*Controls provide managers with

information and feedback on employees
performance

*Help minimize workplace disruptions

 LEVELS OF CONTROL

Strategic control
-involves monitoring critical environment factors to ensure
that strategic arplans are implemented as intended, assessing
the effects of organizational strategic actions, and adjusting
such plans when necessy

Tactical control
-focuses on assessing the implementation of tactical plans at
department levels, monitoring associated periodic results,
and taking corrective action as necessary

Operational control
-involves overseeing the implementation of operating plans,
monitoring day-to-day results, and taking corrective action
when required
UNDERSTANDING THE CONTROL PROCESS

*Establish standards
-Quantity/targets, Quality, Monetary and Time-related

*Monitor performance
-Periodically checking and correcting minor
deviations/problems

*Measure actual performance

-Actual measurement over a pre-decided time period. eg;
annually, half-yearly

*Take corrective actions

-Post evaluation of "where one stands", the co. takes actions
to ensure original plans are met
An Effective Control system needs to have:

*Acceptability by all those who will enforce

decisions
*Flexibility
*Accuracy
*Timeless
*Cost effectiveness
*Balance between objectivity and subjectivity
*Coordinated with planning, organizing and
leading
Controlling
The process of measuring performance and
taking action to ensure desired results
Control Systems

Output Standard
Measures performance results in terms of quantity, quality, cost, or
time.
Input Standard
Measures work efforts that go into a performance task
CONTROL SYSTEMS

Types Of Control Systems

CONTROLLING TECHNIQUES

*Traditional Techniques * Modern Techniques

-Personal observation -Management Audit
-Break Even analysis -Return on Invesment
-Statistical reports -PERT and CPM
-Budgetary control -GANTT
-management information
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Management By Objectives

MBO (Management By Objectives)

A process of joint objective setting between
superior and subordinate
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Employee Discipline
Discipline
is the act of influencing behavior through reprimand.
Progressive Discipline
ties reprimands to the severity and frequency of misbehavior.

MANAGEMENT TIPS
Hot stove rules of employee discipline
-Immediate
-Focus on activity not personality
-Consistent
-Informative
-Occur in a supportive setting
-Support realistic rules
GANTT CHART
1. GANTT TECHNIQUE
- a type of bar chart that illustrates a
project schedule
-illustrates the start and finish dates of
the terminal elements and summary
elements of a project. it compromise
the work breakdown structure of the
project
 PERT
The program (or project) evaluation and review technique,
commonly abbreviated PERT, is a statistical tool, used in project
management, which was designed to analyze and represent
the tasks involved in completing a given project.
 PERT
ADV.
-ensures planning
-all managers are involved
-forward-looking-hence, helps to prevent deviations and take
corrective measures quikly
-facilitate in decision-making
-improves communication
DISADV.
-error in estimation of time and cost as no scope for 'gestimates'
-quite complicated. one needs good knowledge and
unfderstanding for right application
-overemphasis on time, less on costs
Quality Control

Total Quality Management (TQM)

commits to quality objectives, continuous improvement, and
doing things right the first time.
Quality Circle
is a small group that meets regularly to discuss ways of
improving work quality.
Four Absolutes of Quality Control

1. Quality means conformance to standards. Workers must know exactly what performance standards they are
expected to meet.
2. Quality comes from defect prevention, not defect correction. Leadership, training, and discipline must prevent
defects in the first place.
3. Quality as a performance standard must mean defect-free work. The only acceptable quality standard is perfect
work.
4. Quality saves money. Doing things right the first time saves the cost of correcting poor work.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Purchasing And Inventory Controls

Purchasing Control
buying what is needed at the right quality, at a good price, and
for on-time delivery.
Supply Chain Management
uses information technology to link suppliers and purchasers in
cost efficient ways.
Inventory Control
ensures that inventory is only big enough to meet immediate
needs.
Economic Order Quantity
places new orders when inventory levels fall to predetermined
points.
Just-in-time Scheduling
routes materials to workstations just in time for use.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Breakeven Analysis

Breakeven Point
is the point at which revenues equal costs
Breakeven Analysis
calculates the point at which sales revenues
cover costs.

How to Calculate a Breakeven Point

Breakeven Point = Fixed Costs / (Price - Variable Costs)
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Breakeven Analysis
 BUDGETING

Budgeting is the process of creating a

plan to spend your money. This spending
plan is called a budget.
OBJECTIVES OF BUDGETING

-establish balancing account

-maximization of profits
-planning
-forecasting
-control expenditure
 ADVANTAGES

-achievment goals
-control expenditure
-better utilization of resources
-solving financial difficulties
-co-ordination in working
LIMITATIONS OF BUDGETING

-changing conditions
-time consuming
-budgets are based on plan estimates
-conflicts among departments
-inaccuracy
THANK YOU