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Controlling

The document outlines the concept of managerial control, defining it as a process of monitoring performance and ensuring alignment with organizational objectives. It describes the control process, types of control (input, concurrent, and feedback), and various control techniques, both traditional and advanced. Additionally, it emphasizes the importance of control in maintaining accountability, employee morale, coordination, and adaptability within an organization.

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Webner Ding Ebio
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7 views32 pages

Controlling

The document outlines the concept of managerial control, defining it as a process of monitoring performance and ensuring alignment with organizational objectives. It describes the control process, types of control (input, concurrent, and feedback), and various control techniques, both traditional and advanced. Additionally, it emphasizes the importance of control in maintaining accountability, employee morale, coordination, and adaptability within an organization.

Uploaded by

Webner Ding Ebio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT IV

MANAGERIAL
CONTROL
Definition of Controlling
Henry Fayol: Control
consists in verifying
whether everything
occurs in conformity
with the plan adopted,
the instructions issued
and the principles
established.
DEFINITION OF CONTROL

Koontz and O’Donnell:


Controlling implies measurement
of accomplishment /performance
against the standard & the
correction of deviations to assure
attainment of objectives
according to plans.
CONTROLLING AS A
MANAGEMENT FUNCTION
– A process of monitoring performance and taking
action to ensure desired results.
– It sees to it that the right things happen, in the
right ways, and at the right time.
– Done well, it ensures that the overall directions of
individuals and groups are consistent with short
and long range plans of the organisation
– It helps ensure that objectives and accomplishments
are consistent with one another throughout an
organization.
– It helps maintain compliance with essential
organizational rules and policies.
FEATURES/CHARACTERSTICS
OF CONTROLLING
• Continuous process. •Strategic and results
• Flexible and dynamic oriented
process. •Understandable
• Future oriented. •Timely and exception
• Planning and oriented
controlling closely •Essence of control is
related. action
• Function of
management.
The Control Process
Standard Yes
Compare Do Nothing
Attained?
Performance
to Standard No

Objectives Variance Yes


Do Nothing
Acceptable?

Measure No
Standard Performance
Standard Yes Identify
Acceptable? Causes

No
Correct
Revise
Performance
Standard
THE CONTROL PROCESS
• Establish objectives • Comparing Results with
and standards- Objectives and Standards
Performance objectives are Establishes the need for action.
defined and the standards for Ways of making comparisons:
measuring them are set. Historical / Relative and
There are two types of Benchmarking
standards-output standard
and input standard
• • Taking Corrective
Measure actual
performance- Action-
Taking any action necessary to
To spot deviations or correct or improve things.
variances between what
really occurs and
what is most desired.
Three types of control on
the basis of time of action

Input Processes Output

Feed forward Concurrent Feedback


Control Control Control
Anticipates Corrects problems Corrects problems
problems as they happen after they occur
PRELIMINARY/
FEED FORWARD
Sometimes called the feed forward controls, they
are accomplished before a work activity begins.
They make sure that proper directions are set and
that the right resources are available to accomplish
them.
CONCURRENT
Focus on what happens during the work process.
Sometimes called steering controls, they monitor
ongoing operations and activities to make sure
that things are being done correctly.
FEEDBACK/POSTACTION

Sometimes called
feedback controls, they
take place after an action
is completed. They focus
on end results, as opposed
to inputs and activities.
Control Techniques
Control techniques may be broadly classified
into two categories:-
• Traditional control techniques.
• Advance / Modern control techniques.
Traditional Control Techniques:-

• Personal
observation.
• Statistical reports
and analysis.
• Break-even
analysis.
• Budgetary control.
Advance control techniques:-

• Self Control
• Management Audit.
• Programme Evaluation and
Review Techniques (PERT).
• Critical Path Method (CPM).
• Management Information
Systems (MIS).
Guide to Operations

 Measures Progress
 Uncover Deviations
 Indicate Corrective Action
Policy Verification

 Verify quality of various plans


 Helps to review , revise and update plans
 Helps to carry out the plans successfully
Managerial Accountability
 Manager responsible for ultimate performance
 Managers check performance of subordinates
 Control help them to discharge their
responsibilities
 Facilitates decision making and better
management
Employee Morale
 Control brings order and discipline
 Absence of control – lower employee morale
Psychological Pressure

 Motivates employees to perform better


 Rewards and recognition
Coordination in Action

 Actions according to plans


 Right direction
 Correct inter relationship between various factors
 Balance between ends and means
Focus on Objectives and Needs

 Aim at accomplishing the organizational goals


 Standards set should be realistic
 Early detection of deviations
Suggestive
 Merely pointing out deviations – not enough
 Lead to corrective actions
 Check undesirable deviations
 E.g. – train employees, effective supervision, revise
standards
Suitability
 Control techniques – suit nature of activities
 E.g. – Different control system in a big and small
organization
Simple

 Simple and easy to understand


 If complicated – employees confused – poor performance
Forward Looking

 Directed towards future


 Anticipate future requirements
 Identify situations that need new plans
Control by Exception

 Some deviations have greater impact than others


 Control every activity – not feasible
 Critical Point Control - Control significant deviations only
Flexibility

 Keep pace with changing environment


 Adaptable to new developments
 Alternative plans
Motivating

 Consider human factor


 Control work not workers
 Free not restrict action
 Prevent mistake not punish
 Direct contact between controller and the controlled
Economical

 Control system – worth its cost


 Justifiable expenses
 Savings > Cost of control

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