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Controlling As A Management Function: by Bushra Manair, Mba (Summit Bank)

Controlling is a management function that involves monitoring performance, comparing results to standards, and taking corrective action. It aims to ensure that goals are achieved in an efficient manner that is consistent with plans and policies. The control process involves establishing objectives and standards, measuring performance, comparing results to the standards, and taking necessary actions to address any deviations. There are various types of controls that can be applied at different stages, including preliminary, concurrent, and postaction controls. Organizations implement control systems related to processes, compensation, information, and operations to influence and monitor performance.

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45 views28 pages

Controlling As A Management Function: by Bushra Manair, Mba (Summit Bank)

Controlling is a management function that involves monitoring performance, comparing results to standards, and taking corrective action. It aims to ensure that goals are achieved in an efficient manner that is consistent with plans and policies. The control process involves establishing objectives and standards, measuring performance, comparing results to the standards, and taking necessary actions to address any deviations. There are various types of controls that can be applied at different stages, including preliminary, concurrent, and postaction controls. Organizations implement control systems related to processes, compensation, information, and operations to influence and monitor performance.

Uploaded by

bushra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CONTROLLING AS A

MANAGEMENT FUNCTION

By
BUSHRA MANAIR , MBA
(SUMMIT BANK )

Controlling as a
Management Function

Controlling
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.

Controlling as a
Management Function

Controlling
Done well, it ensures that the overall directions
of individuals and groups are consistent with
short and long range plans.
It helps ensure that objectives and
accomplishments are consistent with one
another throughout an organization.

Controlling as a
Management Function

Controlling
It helps maintain compliance with essential
organizational rules and policies.

Controlling as a
Management Function

Cybernetic Control System


One that is self-contained in its performance
monitoring and correction capabilities.
(thermostat)
The control process practiced in organizations is
not cybernetic, but it does follow similar
principles.

The Control Process

Establish objectives and standards.


Measure actual performance.
Compare results with objectives and
standards.
Take necessary action.

Establish Objectives
and Standards

The control process begins with planning and


the establishment of performance objectives.
Performance objectives are defined and the
standards for measuring them are set.

Establish Objectives
and Standards

There are two types of standards:


Output Standards - measures performance results
in terms of quantity, quality, cost, or time.
Input Standards - measures work efforts that go
into a performance task.

Measuring Actual
Performance

Measurements must be accurate enough to


spot deviations or variances between what
really occurs and what is most desired.
Without measurement, effective control is not
possible.

Comparing Results with


Objectives and
Standards

The comparison of actual performance


with desired performance establishes the
need for action.
Ways of making such comparisons
include:
Historical / Relative / Engineering
Benchmarking

10

Taking Corrective
Action

Taking any action necessary to correct


or improve things.
Management-by-Exception focuses
managerial attention on substantial
differences between actual and desired
performance.

11

Taking Corrective
Action

Management-by Exception can save the

managers time, energy, and other resources,


and concentrates efforts on areas showing the
greatest need.
There are two types of exceptions:

Problems - below standard


Opportunities - above standard

12

Effective Controls

The Best Controls in Organizations


are
Strategic and results oriented
Understandable
Encourage self-control

13

Effective Controls

The Best Controls in Organizations are

Timely and exception oriented


Positive in nature
Fair and objective
Flexible

14

Types of Control

Preliminary

Sometimes called the feedforward 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.

15

Types of Control

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.

16

Types of Control

Postaction

Sometimes called feedback controls, they take


place after an action is completed. They focus
on end results, as opposed to inputs and
activities.

17

Types of Controls

Managers have two broad options with respect


to control.
They can rely on people to exercise selfcontrol (internal) over their own behavior.
Alternatively, managers can take direct action
(external) to control the behavior of others.

18

Types of Control

Internal Controls

Allows motivated individuals to exercise selfcontrol in fulfilling job expectations.

The potential for self-control is enhanced


when capable people have clear
performance objectives and proper
resource support.

19

Types of Control

External Controls

It occurs through personal supervision


and the use of formal administrative
systems.
Performance appraisal systems, compensation and
benefit systems, employee discipline systems, and
management-by-objectives.

20

Organizational Control
Systems

Management Processes

Strategy and objectives


Policies and procedures
Selection and training
Performance appraisal
Job design and work structures
Performance modeling, norms, and organization
culture

21

Organizational Control
Systems

Compensation and Benefits


Attract talented people and retain them.
Motivate people to exert maximum effort in
their work.
Recognize the value of their performance
contributions.

22

Organizational Control
Systems
Employee Discipline

Discipline is defined as influencing behavior


through reprimand.
Progressive Discipline ties reprimand to the
severity and frequency of the employees
infractions.
Positive Discipline tries to involve people more
positively and directly in making decisions to
improve their behavior.

23

The Hot Stove Rule

To be Effective Discipline Should be:


Immediate
Focus on activity
not personality
Consistent

Informative
Occur in a
supportive setting
Support realistic
rules

24

Organizational Control
Systems

Information and Financial


Activity-based costing - the true cost of all
products and services.
Economic value added - examine the value
added by all activities.
Understand the implication of key financial
measures of (ratios) organizational performance

25

Operations
Management and
Control

Purchasing

Economic Order Quantity


automatic reorder points

Just-In-Time Scheduling

26

Operations
Management and
Control

Project Management
Program Evaluation and Review Technique
(PERT) - Identifies and controls the many
separate events in complex projects.

27

Operations
Management and
Control

Statistical Quality Control


Based on the establishment of upper and lower
control limits, that can be graphically and
statistically monitored to ensure that products
meet standards.

28

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