CONTROLLING

Contents1.Concepts of controlling

2.Three phases of Controlling3.Importance of controlling4.Steps in Controlling5.Types of Controlling6.Control areas7.Requirements for effective

control8.Management by exceptions9.Design of effective Control

system10.Relation between planning

and controlling

Control is an important function of management it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.

According to modern concepts, control is a foreseeing action.

Control in management means setting standards, measuring actual performance and taking corrective action.

Concept

1. Anticipating the things that could go wrong and taking preventive measures that they don’t.

2. Monitoring or measuring performance in some way in order to compare what is actually happening with what is supposed to be happening.

3. Correcting performance problems that could occur. this is the therapeutic aspect of control.

Management must use control to monitor progress and to make intelligent adjustments as required.

Phases of Controlling

Adjustments in Operation.

Policy Verification.

Managerial Responsibility.

Psychological Pressure.

Coordination in Action.

Organizational Efficiency and Effectiveness.

Importance of Controlling

Desired performan

ce

Actual performan

ce

Measurement of actual performanc

e

Comparison of actual

performance against

standards

Implementation of

corrections

Program of

corrective action

Analysis of causes of deviations

Identification of

deviations

Sequence of Controlling

CONTROLELEMENTS TO BE CONTROLLED

STRATEGIC

OPERATIONAL

STAGES OF CONTROL

FEEDFORWARD

CONCURRENT

FEEDBACK

Based on

Types of Controlling

Feed forward Control

It involves evaluation of inputs and taking corrective action before any particular sequence of operation is completed.

To be effective, feed forward control should meet the following requirements:

Thorough and careful analysis of the planning and control system.

Data on input variables must be regularly collected and put into system.

Variations of Actual input data from planned inputs must be assessed.

Action to solve them.

Concurrent Control

The role of this control type comes into play during

the course of a running operation.

Provides measures for taking corrective action while program is still in operation and before any major damage is done.

Feedback Control

It is based on the measurement of the results of an action.

After the operation is completed the error is corrected in the input end

example :- feedback from facilities engineers regarding the completed job.

INPUT-------------PROCESS-------------OUTPUT

feed forward control concurrent control feedback control (anticipates problems) (corrects problems (corrects problems as they happen) after they occur)

Examples• Pre-employment drug testing• Inspect raw materials• Hire only college graduates

Examples•Adaptive culture•Total quality management•Employee self-control

Examples•Analyze sales per employee•Final quality inspection•Survey customers

Control over policies Control over Organization structure Control over personnel Control over wages and salaries Control over costs Control over methods and manpower Control over capital expenditure Control over service departments Control over line of products Control over research and development Control over foreign operations Control over external relations Overall control

Control Areas

One of the most important ways of controls for efficiency and effectiveness is to make sure

that they are designed to point out exception.Under management by exception a manager

focuses on critical control needs and allows employees to handle most routine deviations from standards. the attention should be focused on exceptional rather than routine problems.

Management by exception is a system of identification and communication that signals to the manager when his attention is needed.

Management by Exception

Management by exception has six basic ingredients:

1. Measurement2. Projection3. Selection4. Observation5. Comparison6. Decision making

Design of Effective Control System

PRINCIPLES :

Integrating Strategic Planning and Control System.

Identifying Strategic Control Points

Organizational Communication

Motivational Dynamics

Integrating Strategic Planning and Control

System Two important processes for

effective Business Organization. Proper Integration by developing

consistency of strategic objectives & performance measures.

“What You Measure Is What You Get”.

Two considerations in developing performance measures

1.Focus on primary concern.

2.Relate to managerial Domain.

Identifying Strategic Control Points

Management by exception.

Monitoring or collecting information.

Small percentage activities – accounts high proportion problem

Organizational Communication

Two way communication network, upward and downward.

Downward – Superior to Subordinate “What is expected”.

Upward - Subordinate to Superior “What they have done”.

Motivational Dynamics

The motivational dynamics have two-fold

role in control.

Firstly, how the various attempts at control are in tune with needs of the people.

Secondly, the organization itself provides motivation or demotivation to the people to work.

Relation between Planning and Control

Planning and controlling are two separate functions of management. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. relationship between the two can be summarized in the following points:

Planning proceeds controlling and controlling succeeds planning. Planning and controlling are inseparable functions of management. Activities are put on rails by planning and they are kept at right

place through controlling. The process of planning and controlling works on Systems

Approach which is as follows : ` Planning    →    Results    →    Corrective Action Planning and controlling are integral parts of an organization as

both are important for smooth running of an enterprise. Planning and controlling reinforce each other. Each drives the other

function of management.

It is obvious that before a control technique can be used or a system devised, control must be based on plans, and that the clearer, more complete, and more integrated plans are, the more effective controls can be. It is simple as this:

There is no way that managers can determine whether their organizational unit is accomplishing what is desired and expected unless they first know what is expected.

no undesirabledeviations

from plans

undesirable deviation

planningImplementation of plans

Controlling:

Comparing plans with

results

Corrective action

New plans

Planning is a basic managerial function. It involves deciding on a course of action in advance. Planning is deciding what is to be done, where and how the work is to be done and who will do the particular task. We can say plan is to produce schemes for future action, to bring about specified results and specified cost, in a specified period of time. It is a deliberate, extent, speed and effects of change.  

• Controlling is a procedure for measuring performance against objects. Controlling consist in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established. Its object is to point out weaknesses and error in order to rectify them and prevent recurrence. In short controlling facilitates the compliment of the plans.

Although planning must preside controlling, plans are not self achieve. Plans guides manager in the use of the resources to the accomplished goal. Them activities are cheek to determine where confirm to plans. Some meaning of controlling like budget for expanse, in checking the record of labour hours lost. Each measure and each had shown where plans are working out. If devotion perishes, correct is innervated but what are correct activities through person. Control Requires Plans

Requirements For Effective Controls

Effective control system

Reflecting

organizational needs

Reflecting

organizational

pattern

Corrective

action

motivating

Emphasis on

exceptions

simple

economy

flexible

objective

Thus we can conclude that control whether managerial or otherwise is an important principle and part of modern management.

It is a vital link between the goals set, the performance put in, and the goals achieved.

Conclusion

Thank you!!

?Queries

BY: KOMALI 09-13GAURAV 09-14KAILASH 09-19PRAKASH 09-39ROOPA 09- 28SRINIVAS 09-52