CONTROLLING

CONTROLLING
 Contents
Contents
1.Concepts of controlling
2.Three phases of Controlling
3.Importance of controlling
4.Steps in Controlling
5.Types of Controlling
6.Control areas
7.Requirements for effective control
8.Management by exceptions
9.Design of effective Control system
10.Relation between planning and
controlling
 Concept
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.
 Phases of Controlling
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.
Importance of Controlling
 Adjustments in Operation.

 Policy Verification.

 Managerial Responsibility.

 Psychological Pressure.

 Coordination in Action.

 Organizational Efficiency and Effectiveness.

 Sequence of Controlling
Comparison of
Measurement
Desired Actual actual
of actual
performance performance performance
performance
against standards

Implementati Program of Analysis of

Identification
on of corrective causes of
of deviations
corrections action deviations
 Types of Controlling
Based on
CONTROL

CONCURRENT FEEDBACK

ELEMENTS TO BE STAGES OF
CONTROLLED CONTROL
 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
Concurrent Control
Control

The role of this control type comes into play

during
the course of a running operation.

 Providesmeasures 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
Examples
as they happen) after they
• Pre-
occur) Examples Examples
employment •Adaptive •Analyze sales
drug testing culture per employee
• Inspect raw •Total quality •Final quality
materials management inspection
• Hire only •Employee •Survey
college self-control customers
graduates
 Control Areas
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

Management by Exception
 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 has six basic
ingredients:

1. Measurement
2. Projection
3. Selection
4. Observation
5. Comparison
6. 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.
 Identifying Strategic Control
Points

 Management by exception.

 Monitoring or collecting information.

 Smallpercentage activities – accounts high

proportion problem
 Organizational Communication

 Twoway 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.
New plans

no undesirable
deviations Controlling:
Implementation
planning Comparing
of plans
plans with
from plans
results
undesirable deviation

Corrective action
 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 is
Controlling change.  
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
Reflecting Reflecting
Correctiv
organization organizatio
e action al pattern nal needs

motivati economy
ng Effective
control system
Emphasis flexible
on
exceptions
simple objective
 Conclusion
 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.
Thank you!!

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