Key Factors of Effective Management Control.pdf

Management

1. PHILIPPINE CHRISTIAN UNIVERSITY
1648 Taft Ave, Malate, Manila, 1004 Metro Manila
Graduate School of Business and Management
ERWIN S. COLIYAT
Masters in Management major in Engineering Management
UNVEILING THE KEY FACTORS
OF EFFECTIVE MANAGEMENT CONTROL

2. ▪Itisthedutyofthemanagertoimprovetheeffectivenessof
organization’scontrolsystem.
▪Controllingisthelaststepsofmanagementwherehowthe
implementedplanisworkingisassessedandevasiveactionsare
taken.
▪Controlsystemcannotoperateinisolation.
▪Anumberofotherfunctionsarealsorequirestobeperformedfor
makingbecontroleffective.
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EFFECTIVE CONTROLS

3. KEY FACTORS OF
EFFECTIVE CONTROLS
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1.Planning
2.Action
3.Delegation of Authority
4.Prompt Flow of Information

4. 4
1. PLANNING
❑Planningisthefirstprerequisiteformakingcontroleffective.
❑Controlcanbeexercisedonlywhenobjectivesaresetandplans
willbeeffectiveonlywhentheyareproperlyimplemented.
Controlcannotbeexercisedwithoutplanning.Planningmust
precedecontrol.Itisessentialtoplanfirstandthenexercise
controlforitsimplementation.
SETTING OF OBJECTIVES
APPROPRIATE COURSE
OF ACTION

5. 2. ACTION
5
❑Timelyactiononthepartofthemanagerisessentialforexercisingcontrol.Manager
shouldgiveproperguidelinestohissubordinatesforundertakingvariousfunctions.
❑Thedeviationsshouldbereportedattheearliest.Anydelayintheirreportingwilldelaya
correctiveactionalso.Managershouldgiveinstructionsinsuchawaythatwheneverthe
performanceisbelowthestandards’thenitwillbereportedtotheappropriateauthority.
❑Thereshouldbeaquickactiontotakeremedialsteps.Therewillbenouseofreportinga
deviationifitisnotcorrectedattheearliest.
❑Tomakecontroleffectivemanagershouldgiveproperguidelinesfordoingawork,
reportingadeviationandtakingcorrectiveaction.Intheabsenceofanactionplancontrol
maynotbeexercisedeffectively.

6. 6
3. DELEGATION OF AUTHORITY
❑Delegationofauthorityisessentialforexercisingcontrol.
Controllingprocessinvolvesevaluatingperformance,ascertaining
deviationsandtakingcorrectivemeasures.Allthesestepsrequire
somekindofauthority.

7. 7
3. DELEGATION OF AUTHORITY CONT.
❑Whenweaskproductionmanagertoincreaseproductionby20%inthe
currentyearthenhewillrequireauthority:
(a)Toemploymoreworkers;
(b)Togiveincentivestoworkersforimprovingtheirperformance;
(c)Totakedisciplinaryactionagainstinefficientworkers.
Unlessotherwiseproperauthorityisdelegatednocontrolwillbepossible,So
delegationofauthorityisapre-requisitetocontrolsystem.

8. 8
4. PROMPT FLOW OF INFORMATION
❑Thereshouldbeaproperfeedbackofinformationforexercisingcontrol.
❑Theperformanceofsubordinatesshouldreachthemanagerattheearliest.Thiswill
enablehimtotakerectifyingmeasures.
❑Thestepssuggestedforimprovingefficiencyshouldalsoreachsubordinatesatthe
earliestsothattheyareabletoactupontheadvice.
❑Thetimefactorisveryimportantinreporting.Ifthereportsofperformancearedelayed
thenmeasurestoimproveitwillalsobelate.
Aneffectivecontrolcanbeexercisedonlyifflowofinformationbothupwardand
downwardisprompt.

9. THANK YOU!