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CONTROL- Meaning &Introduction

An organization without effective control procedures is notlikely to achieve its goals.

Control keeps the organization moving in the properdirection.

Lloyd Baird says, Managers make things happen, andgood managers make sure that the right thingshappen in the right way and at the right time.

It is a device for detecting & correcting significantvariations in the results obtained from plannedactivities.

A combination of well-planned objectives, strong

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CONTROL- Meaning &Introduction

organization, capable direction, andmotivation have little probability forsuccess unless there exists an adequate

system of control. The word control suggests the

operations of checking, testing,

regulation, verification, correctionand adjustment.

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DEFINITIONS

According to George Terry, Controlling isdetermining what is being accomplished,that is evaluating the performance &, if

necessary, applying corrective measuresso that the performance takes placeaccording to plans.

In the words ofPhilip Kotler, Control isthe process of taking steps to bring actualresults and desired results closertogether.

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OBJECTIVES OF CONTROL

It makes certain that goals & plans are beingfollowed

It maintains effective coordination betweenobjectives, standards & results

It identifies deviations & their reasons

It serves as yardstick for evaluating performance

It provides a base for future planning and future

actions It maintains discipline & cooperation among the

employees

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OBJECTIVES OF CONTROL

It prevents negligence of duty,corruption, wastage, etc. of work

It sets the pace of progress, governs

operations & produces the desiredresults.

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SIGNIFICANCE/IMPORTANCEOF CONTROL

Coordination Corrective Action

Decision making

Better Planning

Facilitate Delegation

Effective Supervision

Efficient Use of Resources

Prevents Crisis & Mistakes

Improvement in Quality and Output

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SIGNIFICANCE/IMPORTANCEOF CONTROL

Facilitates Teamwork & Cooperation

Enhances Employees Morale

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STEPS/PROCESS OFCONTROL

1. 2. 3.4.

ESTABLISHSTANDARD

S

MEASUREPERFORMN

CE

COMPAREPERFORMA

NCE

&STANDARDS

EVALUATEPERFORMA

NCE

& TAKEACTION

MAINTAINTHE

STATUSQUO

CORRECT THEDEVIATION

CHANGESTANDARD

S

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CONTROL

1. General Techniques

Personal Observation

Setting Examples

Records & Reports

Policies & Procedures

Disciplinary Action

Rewards

Budgets

Internal Auditing

Statistical Data

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CONTROL

Break-even Analysis

Self-Control

2. Special Techniques of Control

Human Asset Accounting

Cash Flow Analysis

Management Information System

3.Advanced Control Techniques

Management Audit

Programme Evaluation & Review Techniques(PERT)

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TECHNIQUES/METHODS OFCONTROL

Critical Path Method Operations Research

Linear Programming

Simulation

Games Theory

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REQUIREMENTS FOREFFECTIVE CONTROL

Specially Designed Understandable

Economical

Flexible Accurate

Timely

Simple & Realistic Impartial & Coordinated

Focus on Results

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REQUIREMENTS FOREFFECTIVE CONTROL

Emphasis on Objectives Forward Looking

Responsibility for Control

Corrective Action

Seek Employee Commitment

Periodic Review

METHODS OF CONTROL OF

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METHODS OF CONTROL OFOVERALL PERFORMANCE

1. Budget Summaries & Reports2. Profit & Loss Controls

3. Control through Return on Investment

4. TQM Techniques

5. New Financial Control Systems

6. Open Book Management

7. Balanced Scorecard