CONTROLLING

Definition
Controlling is the process of monitoring the activities to ensure that they are being accomplished as planned and of correcting any significant deviations. It is one of the important managerial functions because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.

Importance of controlling
To check whether activities are going as planned in order to achieve organization goals. Effective control system provides information and feedback on employee performance. Managers control is to protect the organization and it assets. Cope with the organizational complexity and adapt to environmental change.

CHARACTERISTICS OF CONTROL
Control is a continuous process Control is a management process Control is embedded in each level of organizational hierarchy Control is forward looking Control is closely linked with planning Control is a tool for achieving organizational activities Control is an end process

Planning-Controlling links
Planning
Goals Objectives Controlling Standards Measurement Comparison Actions Strategies

Organizing
Structure Human source management

Plans

leading
Leadership Communication Individual and group behavior

CONTROL PROCESS
Establishment of standards Measurable or tangible- cost, profit, output, time, expenditure Non measurable or intangible- performance of a manager, deviation of workers. Measurement of performance performance of a manager cannot be measured in quantities. It can be measured by Attitude of the worker Their morale to work Their communication with the superiors

Contd
Comparison of actual and standard performance: -Manager has to find out the extent of deviation and cause of deviation Taking remedial actions: - manager can revise the target.

THE CONTROL PROCESS

Goals and Objectives Organizational Divisional Departmental Individual Comparing actual performance against standard

Taking Managerial Action

CONTROLLING FOR ORGANIZATIONAL PERFORMANCE

Controls make plans effective Controls make sure that organizational activities are consistent. Controls make organizations effective. Controls make organizations efficient. Controls provide feedback on project status. Controls aid in decision making.

MEASURES OF ORGANIZATIONAL PERFORMANCE

Organizational Productivity
Output is measured by the sales revenue an organization receives when goods are sold. Input is measured by the costs of acquiring and transforming resources into outputs.

Organizational Effectiveness
It is the measure of the appropriateness of organizational goals and how well those goals are being met. Thus it guides managers in designing strategies and work activities and in coordinating the work of employees.

TYPES OF CONTROL

Feedforward control Concurrent control Feed back control

Types of control
Input Processes Output

Feedforward control
Anticipates problems

Concurrent control
Correct problems as they happen

Feedback control Corrects problems after they occur

FINANCIAL CONTROL
Every business wants to earn a profit. To achieve this goal managers need financial control. Traditional Financial Control Measures: Managers might use ratio analysis and budget analysis. Managing Earnings: When organizations manage earnings, they time income and expenses to enhance current financial results for financial performance.

 Balanced Score card Approach:

It looks at four areas that contribute to a companys performance: Finances Customers Internal processes People/Innovation/Growth. According to this approach managers should develop goals in each of the four areas and then measure whether the goals are being met.

INFORMATION CONTROL
In measuring actual performance, managers need information about what is happening within their area of responsibility and about the standards in order to be able to compare actual performance with the standard. MIS is a system used to provide managers with needed information on a regular basis.

PROBLEMS OF CONTROL
We design control into systems. This requires more thought in the systems design but allows more flexibility of operations and makes it possible to operate a system using unpredictable components and undetermined input. Still, the design and effective operation of control are not without problems. Some of the more typical problems relating to control include the difficulty of measurement, the problem of timing information flow, and the setting of proper standards.

Managing operations
Operation management. Value chain management. Goals. Benefits. Requirements. Obstacles. Quality initiatives. Quality goals.

Managing operations
Operations Management : It is generally defined as the The transformation process that converts resources into finished goods and services.

Value chain management

VALUE ~ The performance aspects of goods and services for which customers are willing to give up resources. VALUECHAIN ~ The entire series of organizational work activities that add value at each step from raw materials to finished product. VALUECHAIN MANAGEMENT ~ The process of managing the sequence of activities and information along the entire value chain.

Goals

The goal is to create a value chain strategy that meets the customers needs and desires and allows for full integration among all members of the chain.

Benefits
Improved procurement, Improved logistics, Improved product development, Enhanced customer order management.

Requirements of value chain management

Obstacles

Quality initiatives
Planning for quality. Organizing and leading for quality. Controlling for quality.

Quality Goals
Iso 9000 is a quality management standard which sets uniform guidelines for processes to ensure that products conform to customers requirements. Awarded in 170 countries. Six sigma is a quality standard that establishes a goal of no more than 3.4 defects per million units or procedure.

Conclusion

Therefore, Controlling is one of the most important management functions since it is concerned with the output of the organization.

Thank you