Control IN MANAGMENT

ControlPrinciples of management

Presented by: Danivor Noronha, Stephan Pereira and Nathanael

Danivor & Stephan,FYBMS,Wilson College 2

CONCEPTS OF CONTROL

ControlCompare

with standard

Check or verify

RegulateExercise

authority over

Curb or restrain

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Definitions

“Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished”

By Harold Koontz

“Controlling means to guide someone in the direction it is meant to go”

By Louis Allen

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1. Closely linked with other management functions

2. Used at all levels of management3. Action oriented system4. Control is a process of evolution5. Regular and continuous activity6. Control eliminates wastage7. Dynamic and forward-looking concept

Characteristics of control function

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Complexity of

modern organization

Weakness in the

psychological make-

up

Maintenance of

standards Employees may

succumb to temptations

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Need for control


Advantages of controlling

Facilitates achievement

of targets

Facilitates regular

consultation

Facilitates co-ordination

and efficiency

Avoids deviations

Avoids wastages

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Advantages of controlling

Provides remedial measures

Objectives oriented

Introduces delegation

Removes weak points

Raises employee

morale

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8

Is too much control on employees good ?

Too much of anything is bad !

18-09-2012 Danivor & Stephan,FYBMS,Wilson College


Steps of controlling process

Setting standard

Measure of performance

Comparison of actual results

with standards

Corrective measures, if

any

Taking follow up

action

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Step 1

Setting/establishing standards or targetsA standard is a criteria against which performance is measured

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Step 2

Measuring actual performancePerformance is measured in line of standards

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Step 3

Comparing actual performance with standard performance and identifying any deviationStandard performance – Actual performance = deviation

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Step 4

Introducing suitable corrective measuresSuitable measures to avoid suitable deviations

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Step 5 (Final)

Taking follow-up actionsFollow-up is essential for every organization

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15

Relation between planning and controlling

Planning is pre-requisite

It is looking aheadIt is a mental activity

Control is the effect Planning is the basis of controlIt is looking back

It is a physical activity

18-09-2012 Danivor & Stephan,FYBMS,Wilson College


Control Techniques

CPM-PERTReturn on

investmentManagement audit

Management information system

MBOSelf control

ModernBudgetary Control

Cost controlBreak even analysis

Statistical controlFinancial statements

Direct supervision and Observation

Traditional

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Traditional Control techniques

Budgetary controlTechnique of management control through budgets

Cost controlBringing companies economy in control

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Traditional control techniques

Statistical controlReports are prepared in forms of tables and graphs

Financial statementsSummary of revenue and expenses during financial period18-09-2012


Traditional control techniques

Ratio analysisHelps in understanding profitability and liquidity in a business

Direct supervision and observationObservation of employees and their work18-09-2012


Modern control techniques

CPM and PERTCritical Path Method , Program Evaluation Review Technique

Return on InvestmentThe measure of financial performance of a business

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Management auditAn evaluation of the management on a whole

Management information systemA way of accessing company data

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Management by objectiveEvaluation of management as a wholeSelf controlFreedom to determine own standards18-09-2012


Case Study

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Danivor & Stephan,FYBMS,Wilson College 2418-09-2012

One of India’s premiere private sector banks it has created a standard for itself and is a perfect example of Indian spirit of perfect control and planning internationally


CEO Speak

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Chanda Kochhar, CEO ICICI Bank

“ One can’t just leave everything to the process, because things are changing every day. One day, I might see something that happens to another bank and think, That could happen to us. So I call the team. We brainstorm, we discuss. So there’s an institutionalized process but also a constant on-the-fly process that’s much less structured”


Thank You18-09-2012

Control IN MANAGMENT

Business