DATE: 06-04-2017

PRINCIPLES OF
MANAGEMENT
ASSIGNMENT - 3

SUBMITTED BY:
B NIKHITHA
B140728EC
 1. Discuss the
steps involved in the control process.
Ans. Control is a continuous process. It is not applied when be
everything else is done. There may be some in-built controls in
the exercise of managerial techniques. In spite of this there may
be a difference in standards to be achieved and actual
performance. This may be due to human limitations. Some control
methods may have to be applied to improve performance.

There are four steps in control process:

(1) Setting of control standards,

(2) Measurement of actual performance,

(3) Comparing actual and standard performance and

(4) Taking corrective action.

These steps are discussed in detail:

1. Setting of Control Standards:

Every enterprise plans its activities in advance. On the basis of
plans, the objectives and goals of every department, branch, etc.
are fixed. These, goals are converted into quantity, value, man
hour etc. These are to be/achieved in future. There may also be
qualitative goals. The achievement of various targets is made the
responsibility of specific persons. The levels of achievement are
also decided in advance. Whether a particular result is to be taken
as satisfactory, average or poor should be predetermined so that
the persons responsible for that work should be able to assess
their performance.
Some strategic points should be selected as controls or
yardsticks. Prof. Newman has suggested four guidelines
for selecting strategic points:

(i) The control points should be timely so that they may be able to
reveal significant deviation in time thereby saving further losses,

(ii) Control points should be such as to permit economical

observation and report.

(iii) Control points, especially for executives at higher levels

should provide comprehensive courage.

(iv) Control points should be such as would promote balanced

performance.

2. Measurement of Performance:
The second step in controlling process is the measurement of
performance. The actual performance is measured against the
standards set. This will enable management to determine whether
the work is being done according to plans or not. The
measurement of quantitative objectives is easy since figures of
work done will be available. The qualitative performance such as
human relations, employee morale, etc. can only be measured
through psychological tests and surveys.

Measurement of performance is an important part of control

process. If measurement is such that deviation is detected at the
earliest then it will enable appropriate action well in time. If that is
not possible then deviations should be detected as early as
possible.
3. Comparing Actual and Standard Performance:
The next step in control process is the comparison of actual
performance with the standards set.

The purpose of this comparison is:

(a) To find out deviations if any, and

(b) To determine the reasons for such deviation.

While comparing actual performance with the standard, some

permissible limits are also fixed. When the deviations are within
the prescribed limits then there is no cause for worry. But if the
deviations are more than the allowable limits then it calls for
urgent action. This is also known as management by exception.
When things are going as per plans or within the allowable limits
then top management is not required to take any note of it. But
on the other hand if performance is not up to the level then it is
brought to the notice of top management for taking corrective
action. If the manager gives attention to every deviation then he
will not be able to give enough time for important things.

When the actual performance is not up to the level then causes

for it should be pin-pointed. Necessary steps are taken so that
performance is not adversely affected once again. If no efforts are
made to rectify the weak areas then the whole control process will
be futile. Whenever the performance is low than the standards,
the reasons for it should immediately be found.

4. Taking Corrective Action:

The last but most important step in controlling process is of taking

corrective action. Whenever the performance is less than the
standards, efforts should be made to rectify it. Whatever the
reasons for low performance, efforts are made to achieve
organizational goals. No control process can automatically rectify
the mistakes in a system. It is the action which is required to set
the things right, sometimes the targets are not achievable even
with more efforts then these will have to be revised. The control
action may involve review of plans and goals, change in the
methods of work, change in the assignment of task, change in
existing techniques of direction and change in organization
structure.

The corrective action generally involves top management. It is

said by some persons that taking corrective action is not a part of
control but a separate managerial function. The overlapping of
control function only shows the unity of managers job. It shows
that managing process should be integrated one.

2. Explain the designing of control systems.

Ans:
Designing the control system:
1. Objectives:

a. The objective of the control system should be fixed.

b. The picture of the objective should be very clear in the mind of
the people involved.
c. Answers to the questions like what to control and how to
control etc. should be well planned beforehand, before the
introduction of the control system.
d. The objective should be decided on the basis of the design of
the system.
e. The deviation should be signaled automatically by the system.

2. Design essentials:
a. The designing of the control should be done based on the
desires of the customer.
b. For a particular control system, one person should be
nominated responsible.
c. For knowing or testing the degree of the reliability, it is very
essential to calibrate the various measuring instruments.
d. The corrections should be carried out.
e. Must possess feedback to its correctness.
f. The critical points form a very critical part of the control system
design.
g. The deviation that occurs must be calculated or measured.

3. Discuss about Total Quality Management

(TQM) approach towards management.
Ans:
A core definition of total quality management (TQM) describes a
management approach to longterm success through customer
satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the
culture in which they work.

Total Quality Management TQM, also known as total productive

maintenance, describes a management approach to long-term
success through customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes,
products, services, and the culture in which they work.
Total Quality Management Principles: The 8 Primary Elements of
TQM

Total quality management can be summarized as a management

system for a customer-focused organization that involves all
employees in continual improvement. It uses strategy, data, and
effective communications to integrate the quality discipline into
the culture and activities of the organization. Many of these
concepts are present in modern Quality Management Systems,
the successor to TQM. Here are the 8 principles of total quality
management:

1. Customer-focused

The customer ultimately determines the level of quality. No

matter what an organization does to foster quality improvement
training employees, integrating quality into the design process,
upgrading computers or software, or buying new measuring tools
the customer determines whether the efforts were worthwhile.

2. Total employee involvement

All employees participate in working toward common goals. Total

employee commitment can only be obtained after fear has been
driven from the workplace, when empowerment has occurred,
and management has provided the proper environment. High-
performance work systems integrate continuous improvement
efforts with normal business operations. Self-managed work
teams are one form of empowerment.

3. Process-centered

A fundamental part of TQM is a focus on process thinking. A

process is a series of steps that take inputs from suppliers
(internal or external) and transforms them into outputs that are
delivered to customers (again, either internal or external). The
steps required to carry out the process are defined, and
performance measures are continuously monitored in order to
detect unexpected variation.

4. Integrated system

Although an organization may consist of many different functional

specialties often organized into vertically structured departments,
it is the horizontal processes interconnecting these functions that
are the focus of TQM.

Micro-processes add up to larger processes, and all

processes aggregate into the business processes required for
defining and implementing strategy. Everyone must
understand the vision, mission, and guiding principles as well
as the quality policies, objectives, and critical processes of
the organization. Business performance must be monitored
and communicated continuously.

An integrated business system may be modeled after

the Baldrige National Quality Program criteria and/or
incorporate the ISO 9000 standards. Every organization has
a unique work culture, and it is virtually impossible to
achieve excellence in its products and services unless a good
quality culture has been fostered. Thus, an integrated
system connects business improvement elements in an
attempt to continually improve and exceed the expectations
of customers, employees, and other stakeholders.

5. Strategic and systematic approach

A critical part of the management of quality is the strategic and

systematic approach to achieving an organizations vision,
mission, and goals. This process, called strategic planning or
strategic management, includes the formulation of a strategic
plan that integrates quality as a core component.

6. Continual improvement
A major thrust of TQM is continual process improvement.
Continual improvement drives an organization to be both
analytical and creative in finding ways to become more
competitive and more effective at meeting stakeholder
expectations.

7. Fact-based decision making

In order to know how well an organization is performing, data on

performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and allow
prediction based on past history.

8. Communications

During times of organizational change, as well as part of day-to-

day operation, effective communications plays a large part in
maintaining morale and in motivating employees at all levels.
Communications involve strategies, method, and timeliness.

These elements are considered so essential to TQM that many

organizations define them, in some format, as a set of core values
and principles on which the organization is to operate.

4. What do you mean by Management By

Objectives (MBO) ?
Ans:
Management by Objectives (MBO) is a personnel management
technique where managers and employees work together to set,
record and monitor goals for a specific period of time.
Organizational goals and planning flow top-down through the
organization and are translated into personal goals for
organizational members. The technique was first championed by
management expert Peter Drucker and became commonly used
in the 1960s.

The core concept of MBO is planning, which means that an

organization and its members are not merely reacting to events
and problems but are instead being proactive. MBO requires that
employees set measurable personal goals based upon the
organizational goals. For example, a goal for a civil engineer may
be to complete the infrastructure of a housing division within the
next twelve months. The personal goal aligns with the
organizational goal of completing the subdivision.

MBO is a supervised and managed activity so that all of the

individual goals can be coordinated to work towards the overall
organizational goal. You can think of an individual, personal goal
as one piece of a puzzle that must fit together with all of the other
pieces to form the complete puzzle: the organizational goal. Goals
are set down in writing annually and are continually monitored by
managers to check progress. Rewards are based upon goal
achievement.