Controlling

Group 9
 Learning objectives:
 Define the organization controlling process and its techniques
 Discuss the importance of controlling
 Enumerate the steps and controlling
 Define the essential effectiveness control system
 Discuss the behavioral implications
 Define the advantages and disadvantages
 Enumerate the scopes of control
 Controlling and other functions
 INTRODUCTION
An organization faces many problems on how to steer towards
a strategic objective and competitive advantage. Controlling is one
of the implements which manager used an implementing decided
strategies. Discussing about the functions, importance, process,
essential of effectiveness, behavioral implications, the advantages
and disadvantages of management by exception and the scopes of
control.
 Definition
Controlling is a system that gathers information to use and
assess the presentations of different resources in organization
like physical, human, financial and The organization as a whole
in light of the organizational strategies.
 CONTROLLING AND OTHER FUNCTIONS
Conferring to Breech, “Controlling is a methodical exercise
which is termed as a procedure of examining real presentation in
contradiction of the values or tactics with a sight to guarantee
acceptable development and also recording such skills as I increased
as involvement to probable upcoming needs.
 Characteristics of controlling functions:
An end function – the
presentations are made in
conformities with tactics when a
01 function comes once.
A persistent function – it
is done by executives at all
02 points in all sort of alarms.

Onward looking – actual

control is impossible deprived of
previous being measured.
Controlling continuously look to
03 future so that addition can be
complete when obligatory.
 Characteristics of controlling functions:

An active process – since

pleasing reviewal approaches is
required in controlling, variations
04 have to be complete wherever
possible. Connected with preparation – there
are two intimate purposes of running, the
planning and controlling. Short of
controlling, preparation is impractical and
deprived of planning controlling is
05 meaningless. Controlling thrives
preparation and arrangement presupposes
controlling.
 Importance
Accomplishing Organizational Goals Judging accuracy of standards

Making Efficient In Use Of Resources Improving employee motivation

Ensuring Order And Discipline

Facilitating coordination in action
 Steps in Controlling
Sitting presentation The primary step in the procedure of controlling, alarmed with setting presentation standards. It is at the
1. foundation for assisting the actual presentation
standards
Measurement of The following step is to measure the concrete presentation, when the standards have been determined. The
2. actual presentation methods for assisting are performance reports, sample testing, individual observation etc. Nonetheless, the
presentation must be measured on the same basis that the standards have, in order to enable easy judgment.

Comparing actual In order to find the deviations, this step encompasses equating the authentic presentation with standards
3. presentation with placed down. For example, the presentation of a salesman in relations of component sold in a week can be
effortlessly restrained against the standard production for the week.
standard
Analyzing the Some deviances are not impossible in all actions. Nonetheless, deviation in the significant parts of business
4. deviances have to be adjusted more directly just as linked to aberration in irrelevant areas. The management should use
controlling by exclusion in such areas and critical point control.
Taking Last step in the controlling method involves taking corrective act. No counteractive amount is essential, if the
5. counteractive action deviances are within acceptable limits. Nonetheless, they must be instantly carried of the notice of the
controlling for taking corrective procedures, if the deviations exceed acceptable limits, especially in the
important areas.
Fundamentals of Operative Control System
Operative control system has the following features:
1. Future-oriented
2. Multiple Control System
3. Economical
4. Timelines
5. Flexible
6. Control of Critical Points
7. Operational
8. Organizational Climate
9. Objective Standards
10. Control by Exception
11. Positive Environment
 Behavioral Implications of Control
1. Control affects individual liberty.
2. Control carries certain position and power implications.
3. Once controls are created upon particular and individual findings as beside
counted presentation, standards and assessments, these may produce
relational or interrelation encounters inside the organization.
4. Unnecessary amount of controls may bound flexibility and originality.
5. Control may affect the generation of invalid and inaccurate information.
6. Controls can be disliked by workers if they have no control over the
situation.
7. The control system should be coordinated to make a firmness between all
affecting and inter-connected variables.
 Control and Organizational Factors

Organizational assembly is the outline establishments use to

summary their authority and communication procedures. The
outline typically comprises policies, instructions and tasks for
each individual in the organization. Some issues interrupt the
organizational assembly of an establishment.
 Organizational Policies and
Procedures
Organizations use guidelines and measures to strategize
instructions summary courses of act to deal with complications.
Organization's guidelines and measures to mark employees recognize
the organization's sights and standards on exact matters, and what will
happen if they are not monitored. Guidelines are universal
declarations of how an organization need to perform and measures
describe precisely how to do a responsibility or accomplish step by
step. A procedure can be refuge connected similarly and that can be
used to identify possibilities and alleviate risks.
 Procedure
 Anybody who is demanding to come in the office range after
reception should cross the main security guard check point.
 All the workers need to have the identity card and display their
identity card to the security guard for validation.
 The security guard should meticulously check the identity card,
picture of the worker, name of the worker and card issuer’s
autograph in the identity card to make certain that he/she is a
worker of the company.
 The appearance of the worker should be undoubtedly perceptive
for security assessment.
 When the security uniqueness that the worker is honest, he/she
can move onward and probe his fingerprint to enter the office.
 If the worker’s appearance is not alike to that in identity card, the
security guard should contact the high-ranking constable of the
worker or human resources division for a validation.
 If any individual who is demanding to pass in the workplace from
reception cannot be confirmed as an honest worker, they should
be directed out of the building by the security guard.
 Perception Formation
Stage 1 –
Stimuli Selection
The procedure of making a
01 perception starts with your Stage 2 –
sensual knowledge of the Organization
world around you. Organization is the period
where designed incentive
02 data must be organized in
some expressive way to make
Stage 3 - logic to you.
Interpretation
Clarification includes
captivating the data you have
recognized and planned and
03 turning it into something that
you can comprehend
Motivational Dynamics
 Encouraging employees is the number one problem fronting today’s
economic situation.
 Employees are no longer concerned to work overtime.
 The old credence was that if you recompence individuals properly, they
will be interested.
 So far, we may now understand that people work just for money, but, in
the meantime, they want to be fulfilled with what they do.
 Motivation is a significant piece of controlling procedure.
 Overcoming Behavioral Problems
 An employee with a “Unruly arrogance” is terrible not only for the team
directors but also with the whole organization.
Few Common Behavioral Matters
 Do not carry your ego to work. Ego has no room in organization.
 Workers require to work in group for them not only to varnish projects on
period but also breakthrough concepts, think out of the box and derive to
advance results, ultimately profiting the organization.
 Why can’t we be truthful to our superiors?
 Do not hesitate to exaltation your skills with period and obtain new
knowledge.
 Controlling and Management by Exception

Managing by exemption is the preparation of groping economic

and operative outcomes of a corporate, and only carrying
matters to the consideration of organization if outcomes signify
considerable deviations from the planned or predictable
quantity.
 Advantages of Management by Exception
I. It decreases the quantity of economic and operative marks that organization
must review, which is further effective habit of their while.
II. The account writer connected to the secretarial scheme can be set to
inevitably print report at specified intermissions that hold the prearranged
exemption stages, which is minimally-invasive commentary method.
III. This way lets workers to shadow their personal tactics to attaining the
outcomes authorized in the corporation’s budget. Organization will only step
in if segregation situations occur.
IV. The corporation’s auditors will make examinations around big exclusions as
fragment of their yearly review actions, so organizations must inspect these
matters in advance of the review.
 Disadvantages of Management by Exception
Disadvantages of Management by Exception
I. This thought is constructed on the presence of a budget against which honest outcomes are associated. If the
budget remained not well articulated, there may be a huge amount of adjustments, numerous of which are
discrete, and which will excess the period of anybody investigate them.
II. The idea needs the use of financial analysts who articulate adjustment synopses and present this info to
organization. Therefore, an additional layer of company overhead is important to make the idea role
correctly. Likewise, an inept specialist might not recognize a possibly solemn matter and will not carry it to
the consideration of organization.
III. This idea is created on the command-and-control scheme, where situations are monitored, and selections
completed by a dominant group of senior directors. You might instead have a dispersed structural assembly,
where local directors might monitor circumstances on an everyday basis, and so would not essential an
exception reporting scheme.
IV. The idea receives that only directors can precise alterations. If a corporate stood instead organized so that
front line workers could contract with most alteration as quickly as they ascend, there would be slight need
for organizations by exemption.
 Range of Control
i. Controlling over strategies
ii. Controlling over organization
iii. Controlling over workers
iv. Controlling over earnings and wages
v. Controlling over charges
vi. Controlling over procedures
vii. Controlling over capital expenses
viii. Controlling over study and growth
ix. Controlling over exterior relations
x. General control
THANK YOU
SO MUCH