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L1-Definition and Nature of Management Control

This document discusses management control and the control process. It defines management control as ensuring employee performance aligns with organizational values and standards through monitoring, comparing, and correcting actions. The control process involves 5 steps: 1) setting performance standards, 2) measuring actual performance, 3) comparing actual to standards, 4) analyzing deviations, and 5) taking corrective measures. The typical control process also establishes standards, measures and reports actual performance, compares it to standards, and takes action to correct any deviations by modifying plans, training, personnel, or leadership techniques.

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Michael Bautista
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62 views16 pages

L1-Definition and Nature of Management Control

This document discusses management control and the control process. It defines management control as ensuring employee performance aligns with organizational values and standards through monitoring, comparing, and correcting actions. The control process involves 5 steps: 1) setting performance standards, 2) measuring actual performance, 3) comparing actual to standards, 4) analyzing deviations, and 5) taking corrective measures. The typical control process also establishes standards, measures and reports actual performance, compares it to standards, and takes action to correct any deviations by modifying plans, training, personnel, or leadership techniques.

Uploaded by

Michael Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 7: Controlling

Definition and
Nature of Management
Control
John Michael A. Bautista
What is Management

it is the process by which


managers at all level ensured
that the people they supervise
that all people they supervise
and implemented their intended
strategy
What is Control
In control there are 5 steps:
Step 1: Setting performance standards
Step 2: Measurement of actual
performance
Step 3: Comparing actual performance
with standards
Step 4: Analysis deviation
Step 5: Taking corrective measure
Management Control

a management function involves


ensuring the work performance of
the organization’s members are
aligned with the organization’s
values and standards through
monitoring, comparing, and
correcting their actions.
Importance of Management
Control
Management control makes sure
that the firm’s operating cash
flow is sufficient, efficient, and,
if possible, profitable when
invested.
Spending without thinking of how it
could be regained in the future
could put any starting business or
even a well established one in
jeopardy.
The Control Process
 The typical control process involves;
Measuring and
Establishing
reporting actual
Standards
performance,
Comparing it
with standards,
and taking
action.
The Control Process

Establishing Standards - means


setting criteria for performance.
Managers must identify priority
activities that have to be
controlled, followed by
determining how these activities
must be properly sequenced.
Measuring and reporting actual
performance and comparing it with
set standards
Managers must develop appropriate
information systems which will help
them identify, collect, organize, and
disseminate information.
Measuring and reporting actual
performance and comparing it with
set standards
Analyses of data/information gathered
measure actual performance and
comparing it with set standards serves
as a means for detecting deviations.
Deviations must be revealed as early
as possible in order to correct them.
Taking action - involves the correction
of deviations from set standards.
Managers may rectify deviations by
modifying such as;
plans or goals
improving the training of employees
firing inefficient subordinates
practicing more effective leadership
techniques

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