Org&Mngt 3rdqtr Wk3!23!24 Control

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OPENING PRAYER

CHECKING OF ATTENDANCE
CONTROLLING

MANAGERIAL CONTROL

BALANCE SCORECARD
OBJECTIVES:

1. Define and describe control, controlling and


managerial control.

2. List the different types of control.

3. Describe the importance of control.


ENDURING UNDERSTANDING:

Effective management is essential


in one’s business.
ESSENTIAL QUESTIONS:

When is good management


effective and efficient?
Controlling is one of the most basic
functions of management, like planning, organizing,
staffing, etc.

Controlling is an important management function,


and without controlling management can’t ensure
the desired results.
Controlling is a systematic exercise
which is called as a process of checking
the actual progress or performance
against the standards or plans with a
view to ensure adequate progress and
also recording such experience as is
gained as a contribution to possible
future needs
What is controlling in Management?
Controlling means the management of the
organization is responsible for deciding
predetermined standards and making sure that
performance of the employees match with the
standards set by the management and in case
if the performance of employees does not
match with standards then taking required
corrective measures.
The role of the management of an
organization is to make sure that the goals of
the organization are achieved as planned and
on time. Out of the many functions of
management, the control function is one of
the most important functions of the
organization.
Controlling means giving instructions to
employees and making sure that the
instructions are being followed as desired
by the management.
Controlling employees of the organization
is an important skill of a manager. A
manager can’t play his role efficiently if
he is not good at controlling his team.
By controlling his team properly, he can make
sure that there is coordination among his
team members and by having proper control
on the team, he can plan effectively for the
future projects. Management control has
different types so as to enable the
management to choose the form of control
depending upon the situation at hand, as it is
one of the most important functions of
management.
Types of Control
There are different types of control in an organization that
are needed to monitor and regulate organizational
processes. The various types of controlling are as follows

1. Feedback Control: Feedback control involves


collecting information about a finished task,
assessing the information and improvising these
type of tasks in the future. Example: Managers may
take feedback from their employees and improve the
processes based on the feedback.
2. Concurrent Control: Concurrent
control is real-time control wherein the
problems are checked in real time and
the action is also taken in real-time to
avoid any losses. A typical example is
Real time traffic analysis of a website in
case server goes down.
3. Feed Forward Control or
Predictive control: A preventive
control is one where you foresee
the problem before it occurs and
therefore you are able to prevent
it.
4. Steering control: As with any vehicle
that is on the road, a steering control is one
which steers the process onto the right
path. In this scenario, the process is ideally
an ongoing process and is continually
steered in the right direction. It is a
combination of feedback control and
concurrent control.
5. Yes / No Control: Most typically used
in production scenarios, Yes and No
control are like lasers on an assembly
line. Either the product is up to quality, or
it is not. Similarly, the Yes/No control is a
simple control that decides whether an
activity should proceed or not.
6. Budgetary control: Budgetary
control is a type of financial control that
controls organizational resources and
budgets. This can be done by observing
forecasted budget vs actual budget
usage and bringing control mechanisms
to stop overutilization of the budget.
7. Operational Control: Day-to-day
activities are the operations that take place
in any organization and the more
productive an organization is, the better its
operations. Thus, operational control
manages the day-to-day activities and
processes to ensure efficiency and
regulation.
8. Strategic Control: Every
organization has long-term goals and
objectives. Strategic Control observes
the strategic planning and
organizational directions and controls
the company’s alignment with its own
goals.
9. Objectives control: SMART goals
are best for any organization and
Objectives control utilizes the principles
of Management by objectives. Goal-
setting is extensively used to give
responsibility to employees and control
them via Objective control.
Process of Controlling in
Management
1) Formation of standards
The first step of the controlling process is the formation of standards.
The manager first prepares a report stating the standards and expected
performance from the project given to employees.
The standards are not decided by randomly picking a figure, but it is
decided on the basis of the past performance of employees and
comparing actual performance of last season and the condition of the
market. Before revealing the expected standards with employees and
giving them the target, the standards are approved from the senior
management.
After getting tangible standards and the approval of the management,
these standards are discussed with the team members, and the target is
given to each team member. A preformed standard gives a common goal
to employees to work towards.
2) Measurement of actual performance
Once the task is completed, it is the job of the
manager to measure the performance of the
employees. The manager will analyze the
performance of each employee and ask them
to submit their report of work.
3) Comparison of actual performance with the
standard performance
After the measurement of the actual report, a
comparison of measuring performance is made
between the actual performance and the pre-
decided standard performance and the difference is
calculated between both the performances and a
report is generated after the analysis of the
performance of all employees.
4) Taking corrective actions if required
After comparing the standard performance with the
actual performance of employees. The difference is
calculated.

Then the performance of each employee is analyzed,


and the difference between the target given to them
and the percentage of target achieved by them is
observed, and the required actions are taken as per
the policy of the company and the past performance of
the employee.
For example, no actions would be taken
against the employee whose
performance has been good in the past
few months. Taking corrective actions is
important; otherwise, employees would
start taking their job lightly, and there are
chances that you might lose business in
the future.

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