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Efforts by-
YOGESH AGGARWAL
JASMEET SINGHHIMANI MANGAL
SHWETA KAPOORMANIK NARANG
DIKSHA GOYALRAHUL JOSHI
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CONTENTS
Concept of controlling.
Features of controlling.
Controlling and other functions.
Importance of controlling.
Steps in controlling.
Establishment of control standards.
Measurement of performance.
Comparison between performance and standards and
the communication.
Correction of deviation from the standards.
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One of the managerial functions like planning,
organizing, staffing and directing.
Process of gathering and feeding back information
about performance so that decision makers can compare
actual results with planned results and decide what to doabout any apparent discrepancies or problems.
Helps to check errors and take corrective measures so
that the deviation from standards are minimized and goalsof the organization are achieved in a desired manner.
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In other words, controlling is the process of measuring
the progress of work against set standards, assessingits achievements and deficiencies and taking remedialactions to assure attainment of objectives.
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CONCEPT OF CONTROLLING
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FEATURES OF CONTROLLING
Controlling is forward looking :
One can control future happenings and not the past.Managers suggest corrective actions for the future period.
Controlling is both an executive process and a result : Each manager has to perform control function in the
organization.
Nature, scope and limit of the control function may be
different for different managers. The word control is preceded by an adjective to
designate control problem : quality control, inventorycontrol, production control, administrative control etc.
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Controlling is a continuous process :
Managerial control follows a definite pattern and timetable, month after month and year after year on acontinuous basis.
Fundamental management function because if
controlling is excluded then all the other managementfunctions are rendered meaningless.
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IMPORTANCE OF CONTROLLING
Helps in achieving goals-
Improves employee motivation-Effective controllingsystem communicates goals and standards of appraisal toemployees.It also guides employees to come out of theirproblem.
Ensures order and discipline as all the undesirableactivities and delays are checked.
Helps in judging the accuracy of standards as anaccurate controlling system revises standards from time to
time to match with environmental changes.
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Organizational efficiency and effectiveness :
Proper control ensures organizational efficiency and
effectiveness. Control system brings the organization closer to its
objectives.
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L M T T ONS Psychological pressure :
Psychological pressure on individuals to perform better.
Rewards and punishment based on the performances.
Manager is responsible for the ultimate performance ofhis subordinates.
Coordination in action :
Coordination is achieved through proper performance. Manager coordinates the activities of his subordinates to
achieve the organizational goals.
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1. ESTABLISHMENT OF CONTROL
STANDARDS
Plans - goals, objectives, targets to be achieved. Actualresults are measured against them.
Precision:
Great precision Standards are set in quantities.
E.g. Physical Volume of products, man hour.Monetary Costs, revenues, investment.
Less precisionStandards are in qualitative terms.
E.g. Human relations.
It is also important to decide the level of achievementwhich will be regarded as good or satisfactory.
Desired level of performance -reasonable , feasible,some amount of flexibility, stated in terms of range
(maximum and minimum).
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2. MEASUREMENT OF PERFORMANCE
Involves measuring the performancein the work interms of control standards.
Methods of measuring performance :
Quantitative Physical and monetary terms, easily andprecisely measurable.
E.g. Production units, sales, volume, profits etc.
QualitativeIntangible, cannot be measured precisely.
E.g. Human relations etc.
Techniques Psychological tests, opinion surveys.
Measurement must be (i) clear, simple and rational, (ii)relevant, (iii) direct attention and efforts, (iv) reliable, selfannouncing, and understandable without complicatedinterpretation or philosophical discussions.
3 COMPARING ACTUAL AND
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3. COMPARING ACTUAL AND
STANDARD PERFORMANCE
Steps : Finding out the extent of deviations.
Identifying the causes of such deviations.
Accurate standardsand accurate measurement of actual
performance are very important for clear revelation ofvariations.
Required standards achieved :
No further managerial action is necessary.
Control process is complete. Required standards not achieved :
Extent of variation may differ from case to case, dependsupon the type of activity.
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Strict compliance with standards or permissible limit ofvariation.
E.g. Engineering products a very minute variation maybe significant.
When the deviation between standard and actualperformance is beyond the prescribed limit, an analysis ismade of the causes of such deviation.
Controllable factorsPerson concerned will takenecessary corrective action.
Uncontrollable factorsPerson concerned cannot beheld responsible.
Communication of datato the person who can takecorrective action.
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4. CORRECTION OF DEVIATIONS Organization is not a self regulating system.
Actions should be taken to maintain the desired degreeof controlin the system or operation.
Control actions :
Review of plans and goalsand change therein on thebasis of such review.
Change in the assignment of tasks.
Change in existing techniques of direction.
Change in the organization structure.
Provision for new facilities.
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DESIRED
PERFORMANCE
IMPLEMENTATION OF
CORRECTIONS
ACTUALPERFORMAN
CE
CORRECTIVEPLAN
ACTION
ANALYSIS OFCAUSES OFDEVIATION
MEASUREMENT OF
PERFORMENCE
COMPARISON OF ACTUAL
ANDSTANDARD
IDENTIFICATION OF
DEVIATION
MANAGEMENT CONTROL
PROCESS
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