Controlling Presentation

CONTROLLING

CONTENT

I. Objectives

II. Definitions

III.Control Process

IV.Types of Control

V. Characteristics of an Effective

Control System

VI.Control Technique

VII.Controlling Overall Performance

VIII.Control Strategies

I. Objectives

Objectives

• Know the need for control

• Understand the control process

• Identify the types of control

• Learn the characteristics of an

effective control system

• Know the different control

techniques

II. Definitions

Controlling

Defined as the managerial

activity for ensuring the

achievement of an organization’s

objectives.

Controlling

Checks whether plans are being

observed and suitable progress

toward the objectives is being

made.

III. Control Process

Three Basic Steps of Control Process

Establishing standards

against which performance

can be measured.

1


Comparing actual performance

against standards.

2

Correcting deviations

or straightening up

what is crooked.


3

IV. Types of Control

Three Types of Control

Preliminary Control.1

• Identifies major problems before they

occur.

Preliminary

Control

Preliminary

Control• Focuses on the preventions of

deviations in planning, organizing,

staffing and directing.

• Assures that every possible malfunction

has been taken care of.

Preliminary

Control


Concurrent Control.2

• Controls the endeavors to

monitor the operation in

progress.

Concurrent

Control

• Serves as a screening test to

move to the next step.

Concurrent

Control


Post Action Control.3

• Control is carried out after the

event.

Post-Action

Control

• The poorest form of control

because it is wasteful of

resources.

Post-Action

Control

• Includes analysis of budget,

financial statements, and quality

control.

Post-Action

Control

V. Characteristics of an Effective Control System

1Characteristics of an

Effective Control System

Must be suitable for the

activity it seeks to regulate

and should be the minimum

required to achieve the

desired results.



Must be objective and measurable

in standards used for evaluating

workers.



Uses the “exception principle”

which provides that only

exceptional circumstances (good or

bad situations) requires the

attention of management.



Provides only usable control

data to the manager concerned.



Quickly reports undesirable

deviations to give the managers the

opportunity to take action in time to

prevent them.



Must be flexible otherwise it will

be unable to maintain control of

operations when a plan fails or is

suddenly changed.



Must be worth the expense otherwise

it’s a waste of resources.



Should show ways to correct an action.

Must not only identify what the error is,

where it occurred, but also who or what

is responsible for it.



Must pinpoint where the

responsibility lies for the various

control activities.

10

Characteristics of an Effective Control System

Must review standards and

objectives periodically for changes

and newly developed methods and

techniques.

11

Characteristics of an Effective Control System

Must be an on-going process since the

environment, operations, personnel, etc.

of an organization are constantly

changing.

VI. Control Techniques

Budgetary Control.1

Traditional Control Techniques

Additional Information

BUDGET

Is a financial statement prepared and

approved prior to a defined period of

time for the policy and purpose of

achieving a predetermined objective.

Budgetary

Control• Is the establishment of budget

related responsibilities of the

executives.

Break-Even Points.2

Traditional Control Techniques

Break-Even Point

Analysis• It is a point when the total income is

equal to the total cost.

• The level of activity when profit or

loss is made by the business

organization.

Gantt Chart Technique.1

Specialized Control Techniques

Gantt Chart

Technique• It is a way of presenting control

information to management developed

by Henry L. Gantt.

Network Analysis.2


Network

Analysis• A technique for controlling a complex

project which requires analysis into

its various activities and events.

Milestone Scheduling.3


Milestone

Scheduling• A schedule and control procedure

developed by the National Aeronautics

and Space Administration (NASA).

Milestone

Scheduling

• Like in Gantt Chart, it uses bar charts

to monitor progress.

VII. Controlling Overall Performance

Controlling Overall Performance

Income Statement.1

Income

Statement• A compile statement at the end of an

accounting period for calculating net

profit or loss from business

operations.


Return of

Investment.

2

Return of Investment

(ROI)• Achieves the necessary objective rate

established by the organization.

ROI Formula

ROI =Profit (before tax) x

100%________________________

Total

Investment


Key Area Control.3

Key Area

Control• A control technique which an

organization rates its performance

in a number of critical areas.

Key Area

Control• It includes quantity, quality, time

and cost with profit as the criterion

of success.


Audits.4

There are three types of audits used

for overall performance: (a) internal,

(b) external and (c) management

audits.

Internal

Audit• Conducted by the employees of the

organization and are responsible for

performing impartial monitoring

activities.

External Audit

• Conducted by those who are

NOT employees of the

organization.

Management

Audit• A periodic assessment of the managerial

performance conducted by an internal or

external auditors.

Management

Audit• Its primarily aim is to determine whether

positive results are being obtained or

not.

VIII. Control Strategies

Control Strategies

There are three basic managerial

approaches, these are: (a) market,

(b) bureaucratic, and (c) clan

control.

Market

Control• A managerial approach that relies

on market mechanisms to regulate

prices for certain goods and

reasonable level of competition.

Bureaucratic Control

• Relies on regulations through rules, policies,

supervision, budget, schedules, reward

systems, and other administrative

mechanisms.

Clan

Control• Relies on values, beliefs, traditions,

corporate culture, shared norms, and

informal relationships to regulate

employee behaviors and facilitate

the reaching of organizational goals.

That ends our presentation

for today.

Thank you!

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Controlling Presentation