System and process of control

This presentation discusses about system and process of control in Principles of Management

1. UNIT V – CONTROLLING

R.Arun Kumar, AP/Mech, RIT

2. SYLLABUS
System and process of controlling – budgetary and non-budgetary
control techniques – use of computers and IT in Management
control – Productivity problems and management – control and
performance – direct and preventive control – reporting.
R.Arun Kumar, AP/Mech, RIT

3. Objective:
To study various techniques for controlling the functions of
management.



Outcome:
The student will be able to describe the control techniques and
the role of technology in management.
R.Arun Kumar, AP/Mech, RIT

4. SYSTEM AND PROCESS OF CONTROLLING
CONTROLLING :
According to Koontz and O‟Donnell“ Managerial control implies
measurement of accomplishment against the standard and
the correction of deviations to assure attainment of objectives
according to plans”
R.Arun Kumar, AP/Mech, RIT

5. NATURE OF CONTROLLING :
1. Controlling is forward looking
R.Arun Kumar, AP/Mech, RIT

6. NATURE OF CONTROLLING :
2. Controlling is goal oriented
R.Arun Kumar, AP/Mech, RIT

7. NATURE OF CONTROLLING :
3. Controlling is pervasive in nature
R.Arun Kumar, AP/Mech, RIT

8. NATURE OF CONTROLLING :
4. Controlling is a continuous process
R.Arun Kumar, AP/Mech, RIT

9. NATURE OF CONTROLLING :
5. Controlling enables to make quick decisions
R.Arun Kumar, AP/Mech, RIT

10. NATURE OF CONTROLLING :
6. Controlling is action based
R.Arun Kumar, AP/Mech, RIT

11. NATURE OF CONTROLLING :
7. Controlling system should be acceptable
R.Arun Kumar, AP/Mech, RIT

12. NATURE OF CONTROLLING :
8. Controlling should be participative
R.Arun Kumar, AP/Mech, RIT

13. IMPORTANCE OF CONTROLLING :
Enables managers to know whether goals are being met.
Controlling provides a critical link back to planning.
An effective control can provide information and feedback on
employee performance.
Controlling protects organization and it‟s assets.
Controlling provides effective supervision.
R.Arun Kumar, AP/Mech, RIT

14. Planning – Controlling link:
R.Arun Kumar, AP/Mech, RIT

15. TYPES OF MANAGERIAL CONTROL :
1. Financial control:
Managers use financial statement such as income statement or
balance statement to monitor the progress of plans.
Income statement shows the revenue, expense, profit, etc.
Balance statement shows the worth of organization at a specific
time.
R.Arun Kumar, AP/Mech, RIT

16. TYPES OF MANAGERIAL CONTROL : :
2. Budget control:
Budget shows expectation of expense and the revenue to be
generated over a period of time.
R.Arun Kumar, AP/Mech, RIT

17. TYPES OF MANAGERIAL CONTROL :
3. Marketing control:
Helps to monitor the progress towards the goal of customer
satisfaction.
R.Arun Kumar, AP/Mech, RIT

18. TYPES OF MANAGERIAL CONTROL :
4. Human resource control:
Helps the manager to regulate and maintain quality of
employees in their job.
e.g.: Training and development, performance appraisal,
disciplinary actions.
R.Arun Kumar, AP/Mech, RIT

19. TYPES OF MANAGERIAL CONTROL :
5. Computers and information control:
Helps to maintain confidential information from the hackers.
R.Arun Kumar, AP/Mech, RIT

20. PROCESS OF CONTROLLING :

R.Arun Kumar, AP/Mech, RIT

21. PROCESS OF CONTROLLING :
Step 1: Measuring actual performance:
Managers should analyze „how and ‘what to measure’.
Employee satisfaction, turnover, absenteeism, budgets are
control criteria(What)
Common sources of information(How) for measuring performance.


R.Arun Kumar, AP/Mech, RIT

22. PROCESS OF CONTROLLING :
Step 2: Comparing actual performance against standard:
Its difficult to predict exactly the acceptable range of
variation.
R.Arun Kumar, AP/Mech, RIT

23. PROCESS OF CONTROLLING :
Step 3: Taking managerial action:
Managers can do three possible courses of action:
Do nothing
Correct actual performance
Revise the standard
R.Arun Kumar, AP/Mech, RIT

24. PROCESS OF CONTROLLING :
Step 3: Taking managerial action:
Do nothing depends on individual decisions.

R.Arun Kumar, AP/Mech, RIT

25. PROCESS OF CONTROLLING :
Step 3: Taking managerial action:
Correct actual performance can be performed by either
immediate corrective actions, basic corrective actions.
For e.g., corrective actions for unsatisfied work are training
programs, disciplinary actions, etc.
R.Arun Kumar, AP/Mech, RIT

26. PROCESS OF CONTROLLING :
Step 3: Taking managerial action:
In some cases, variance may be due to unrealistic standards.
Managers must be cautious about revising the standard
downward.
R.Arun Kumar, AP/Mech, RIT

27. MANAGERIAL DECISION IN CONTROL PROCESS
R.Arun Kumar, AP/Mech, RIT

28. CONTROL TYPES BASED ON TIME:
1. Feedback control:
Feedback control is also called as post action control.
Analyzes the past result and corrective actions are taken.
e.g. Disciplinary actions
R.Arun Kumar, AP/Mech, RIT

29. CONTROL TYPES BASED ON TIME:
2. Concurrent control:
Concurrent control is also called as real time control.
Corrective actions are meant for doing adjustments.
e.g. Organization chart
R.Arun Kumar, AP/Mech, RIT

30. CONTROL TYPES BASED ON TIME:
3. Feed forward control:
This control evaluates the input and corrective measures are
implemented before the task in completed.
e.g. Financial budgets.
R.Arun Kumar, AP/Mech, RIT

31. CONTROL TYPES BASED ON TIME:
4. Strategic control:
Involves monitoring of factors that could affect strategic
plans of an organization.
These are meant for top level managers.
R.Arun Kumar, AP/Mech, RIT

32. CONTROL TYPES BASED ON TIME:
5. Tactical control:
Focuses on assessing the implementation of tactical plans at
departmental levels.
These are meant for middle level managers.
R.Arun Kumar, AP/Mech, RIT

33. CONTROL TYPES BASED ON TIME:
6. Operational control:
Overseeing the implementation of day to day activities.
These are meant for low level managers.

R.Arun Kumar, AP/Mech, RIT