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Presented By:
Group: Compromise
Intake: 19thSection: 02
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Group Leader: Rima Afrin
Group Member:
1. Khatune Jannat ID 048
2. Nasrin Akter ID 050
3. Mahmud Rayhan ID 0614. Rima Afrin ID 064
5. Md. Tariqul Islam ID 072
Group Name: Compromise
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Rima AfrinID_064,
Intake_19th
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CONTROLLING
Controlling is the measuring and collecting individual and organizational
performance to ensure that event conform to plan. Controlling is the process in which management evaluates performance
using pre determine standards and in light the results makes a decision
regarding corrective action.
Controlling is the process of establishing standard measuring the
performance determining whether matches the standards and takingcorrective action on the basis of plan.
According to Heinz Weihrich and Harold Koontz
The managerial function of Controlling is the measurement and
corrective of performance in order to make sure that enterprise
objectives and the plans devised to attain them being accomplished
Controlling
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Md. Tariqul IslamID_072,
Intake_19th
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Controlling Process
Having an effective control system can help ensure that an
organization achieves its goals. Implementing a control system,however is a systematic process that generally processed through
four interrelated steps.
The four steps of controlling process are given below:
1. Establish Standard2. Measurement of Performance
3. Compare Performance against standards
4. Determine need for corrective action
Establish
Standard
Measurement of
Performance
Compare
Performance against
standards
Determine need for
corrective action
Figure : Controlling Process
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ESTABLISHMENT OF STANDARDS
The first step in the control process would be to establish plans.
Standard established for control purposes should be expressed
measurable terms.
Plans are very in detail and complexity and managers cant
usually watch everything special standards are established.
Standards are simply criteria of performance.
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MEASUREMENTOFPERFORMANCE
The second step in the control process is measuring
performance. Performance measurement is a constant,
ongoing activity for most organizations. For control to be
effective, performance measures must be valid. The
measurement of performance against standards shouldideally be done one a forward-looking basis so that
deviations may be detected in advance of their occurrence
and avoided by appropriate actions.
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Compare Performance against standards
The third steps in the control process is comparing
measured performance against established
standards . Performance may be higher than lowerthan or identical to the standard.
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Determine need for corrective action
The final step in the control process is determining the need for
corrective action. Decisions regarding corrective action draw heavily on
a managers analytic an diagnostic skills. Standards should reflect the
various positions in an organization structure. A performance is
measured accordingly it is easier to correct deviations. Managers know
exactly where in the assignment of individual or group duties, the
corrective measures must be applied.
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Mahmud RayhanID_061,
Intake_19th
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1. On the basis of areas:
a. Physical Resourcesb. Human Resourcesc. Information Resourcesd. Financial Resources
2. On the basis of Level:a. Strategic Controlb. Structural Controlc. Operation Control
d. Financial Control
3. On the basis of Responsibility
Types of Control
Types of Control
There are three types of control. These types are given below:
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1. On the basis of areas:Control can focus on any area of an organization. Most organization
define areas of control in terms of the four basis.
Types of resources they use:
a. Physical Resources
b. Human Resources
c. Information Resources
d. Financial Resources
a. Physical Resources:
Physical Resources includes inventory management , quality
Control.
b. Human Resources:
It includes selection and placement, training, and development,
performance appraisal, compensation.
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c. Information Resources:
It includes sales and working , forecasting, environmental analysis, public
relation.
d. Financial Resources:It involves managing the organizations debt, so that the firm always has enough
cash on hand to meet its obligation.
2. On the basis of Level:
Control can be broken down by level within the organizational system.
There are four basis of levels of control:
1. Strategic Control
2. Structural Control3. Operation Control
4. Financial Control
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1. Strategic Control:It focus on how effective the organization corporate. Functional strategic
Are succeeding in helping the organization meet it goals.
2. Structural Control:It concern with how the element of the organization structure are serving
their intended purpose.
3. Operation Control:
It focus on the purpose of the organization uses to transform resources intoproduct and services. Mainly preliminary, screening, and pos transformation
these three forms of the operations are controlled by operation control
4. Financial Control
Financial control is the control of financial resources as they flow into theorganization . Such as
- Revenue , shareholder investment.
- Working capital, Retail earnings.
Financial control is two types:
1. Budgetary control2. Other tools of financial control
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3. On the basis of Responsibility:
Traditionally managers have been responsible for overseeing the wide
array of control system and concerns in organization.
Thus ultimate responsibility for control rests with all managers.
A controller is responsible for helping line managers with their control
activities for coordinating the organizations overall control system.
Many organization are also beginning to use operating employees to
help maintain effective control.
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Khatune JannatID_048,
Intake_19th
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IMPORTANCE OF CONTROLLING
There are some importance of controlling.
These are given bellow:
1. Basis for future action2. Facilitates decision making
3. Facilitates decentralization
4. Facilitates supervision
5. Improves efficiency
6. Facilitates Coordination
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1.
Basis on future action:
Control helps the management to avoid repetition of pastmistakes and provides the basis for future action.
2.
Facilitates decision making:
Controlling is fundamental to decision making. It helps indetermining the course of action whenever there is a deviation
between the standard and the actual performance.
3.
Facilitates decentralization:The modern trend of business organizations toward
decentralization calls for a systematic attempt towards
controlling. Without proper control, decentralization cannot
succeed.
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4.
Facilitates supervision:
The existence of a proper control system should have a positive
impact on the behaviors of the employee. It facilitates supervision.5.
Improves efficiency:
Since a good control system smooth away wrinkles in the
working of an organization the morale of the employees remainshigh.
6.
Facilitates Coordination:
Control helps in integration of activities through unity of action. Itprovides unity of direction.
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Requirements for effective controls
All alert managers want to have an adequate and effective
system of controls to assist them in making sure that eventsconform to plans. Indeed, if controls are to work, they must be
tailored to plans and positions, to the individual managers and
their personalities, and to the needs for efficiency and
effectiveness. Discussed below.
Tailoring controls to plans and position:
All control techniques and systems should reflect the plans
they are designed to follow. They should also be tailored to
position.
Tailoring controls to individual managers:
Controls must be tailored to individual managers. Control
systems and information are of course intended to help
individual managers carry out their function of control.
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Designing controls to point up exceptions at critical points:
One of the most important ways of tailoring controls to the
needs for efficiency and effectiveness is to design them to
point up exceptions. Efficient control requires that managers
look for exceptions, while effective control requires that
managers pay primary attention to things that are most
important.
Seeking objectivity of controls:
Management necessarily has many subjective elements, but
whether a subordinate is doing a good job should ideally not be
a matter for subjective determination. Effective control
requires objective, accurate, and suitable standards.
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Ensuring flexibility of controls:
Controls should remain workable in the face of changedplans, unforeseen circumstances, or outright failures. If
controls are to remain effective deposit failure or
unexpected changes of plans, they must be flexible.
Fitting the control system to the organization
culture:
To be most effective, any control system or technique must
fit the organization culture. If an organization has given itsemployees considerable freedom and participation, a tight
control system any go so strongly against the grain that it
will be doomed to failure.
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Achieving economy of controls:
Controls must be worth their costs. Although this requirement is simple, it is
often difficult to accomplish in practice. Economy is relative, since the
benefits of controls vary with the importance of the activity.
Establishing controls that lead to corrective action:
An adequate system will disclose where failures are occurring and who is
responsible for them, and it will ensure that corrective action is taken.
Control is justified only if deviations from plans are corrected through
appropriate planning, organizing, staffing and leading.
So controlling is important part of management.
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QUEST
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HOU
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QUESTION
HOUR
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