Controlling Presentatio

8/8/2019 Controlling Presentatio

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Controlling is the measurement andcorrection of performance in order tomake sure that enterprise objectives

and the plans devised to attain themare being accomplished.


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According to George R. Terry Controlling is determining what isbeing accomplished, that is

evaluating the performance and ifnecessary, applying correctivemeasures so that the performance

takes place according to plans.


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Control and planning areinseparable.

Control is a continuous process. Control is forward looking Control is all pervasive Control has a positive approach


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Authority Knowledge

Guidance Direction Constraint Restraint


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Prentice Hall, 2002 18-6

Feed Back

Set Standards

Measure actualperformance


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Background controlling is a FIVE steps

The performance standards are set specific goals are created in the planning process

Measuring How We Measurepersonal observation - permits intensive coverage Management By Walking Around(MBWA)drawbacks - subject to personal biases

consumes a great deal of time.

18-7


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Measuring (cont.) How We Measure (cont.) statistical reports - numerical data are easy to

visualize and effective for showing relationships

drawbacks - not all operations can be measuredimportant subjective factors may be ignored

oral reports - includes meetings, telephone callsmay be best way to control work in a virtual

environment

technology permits creation of written record from oralreport

drawbacks - filtering of information


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How We Measure (cont.)

written reports - often morecomprehensive and concise than

oral reportsusually easy to file and retrieve comprehensive control efforts

should use all four approaches

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What We Measure what we measure more critical than how we measure

control criteria applicable to any management situation: employee satisfaction, absenteeism, and turnoverkeeping costs within budgets

control system needs to recognize the diversity of

activities some activities difficult to measure in quantifiable termsmost activities can be grouped into some objective segments

that can be measured


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Comparing

determines the degree of variationbetween actual performance and

standard acceptable range of variation -deviations that exceed this range

become significant


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Acceptable

Upper Limit

Standard

Acceptable

Lower Limit

Measuremen

tofPe

rformance

Acceptable

Range of

Variation

t t+1 t+2 t+3 t+4 t+5

Time Period (t)


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Brand

Sony

Volta

LG

VideioconSamsung

Haier

Onida

Benq

T-seriesTotal Sales

Standard*

1,075

630

800

620540

160

225

80

170

4,300

Over (under)*

(162)

4

112

2132

(20)

(5)

(15)

116

164

Actual*

913

634

912

622672

140

220

65

286

4,464


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Taking Managerial Action Correct Actual Performance - action taken

when the performance variation is unsatisfactoryimmediate corrective action - corrects problems at

once to get performance back on track

basic corrective action - identifies reason forperformance variationcorrects the source of variation

Revise the Standard- variance results from anunrealistic standard

standard, not performance, needs correctiontroublesome to revise the standard downward


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Feed back:-The feedback information is provided to theresponsible heads of the Dept.

If the feedback is positive revealsaccomplishment and the manager mustencourage.

Negative feedback the manager should take

corrective actions and alter the operation.


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Feed-looking Controlprevents anticipated problemsmost desirable type of control requires timely and accurate

information that often is difficult to get Feed forward control

takes place while activity is in progress corrects problem before it becomes toocostlybest-known form is direct supervision


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Yes-No Control Work is stopped at various stages & at certain events

for inspection.

Check for deviations.

After screening GO AHEAD signal is given.

(engineering & automobiles products).Post- action control Used after the completion of the activity.

18-


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Input OutputProcesses

Anticipates

problems

Forward looking

Control

Corrects

problems after

they occur

Post action

Control

Corrects

problems as

they happen

Feed Forward

&Yes-No control


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Flexibility

Remedial action

Understandability

objective

EFFECTIVE

CONTROL

SYSTEM

timelinessForward looking

Human factor Suitability

Economical

18-20


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Budgetary control

Non-budgetary controls

Network analysis & modern

techniques


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Budgetary control refers to use of a budget as acontrol technique. A budget is an estimate of

future need arranged in an orderly basis, coveringsome or all the activities of an enterprise for an

definite period of time.


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It brings in efficiency & economy in theworking of business enterprise.

It helps in the determination of periodicalobjectives.

It introduces precision, discipline, and

direction.

It coordinates & integrates the operations.


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It provides standards against which theactual performance can be measured.

It motivates subordinates.

It helps in participative management.

It helps in forecasting.


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Budget create a rigid financial structure.

It cannot judge the actual results.

They sometimes become expensive,meaningless & cumbersome.

There may be a danger of over-budgeting


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Statistical data & charts Internal audit Special reports Confidential reports Breakeven analysis Information control

Personal observation.


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They are the most common form of non-budgetarycontrol. statistical information of the past & data indentedfor the future can be used for control.

Internal audit:

Management can make use the technique of internalaudit for checking & controlling operations.

Special reports:Executives can give special reports for certain special

projects of non-repetitive situations. Such reports can also begiven on the progress & performance of individuals &departments.


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In certain organization, there is a practice of getting

confidential reports from the supervisors on the abilities and otherinformation about subordinates.

Breakeven analysis:

It is an analysis in chart form depicting the cost-volume-profitrelationship. The breakeven point is that where the total cost is equal tothe total revenue. This charts helps in forecasting, budgeting cashrequirement etc.

Information control:

With the increased complexities in operations, it has become

necessary to have more sophisticated system of collection, processing,

Storing & applying the information. This system can be calledinformation control.


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Control through personal observation will provideimmediate & authentic information regarding theperformance & its matching with the standards.


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There are two techniques:

CPM( Critical Path Method)

PERT(Programme Evaluation and Review

Technique)


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CPM differentiates between planning andscheduling of the project.

Focuses mainly towards activities.

example: Preparation of dealer questionnaire.( 10 days)

Dealer survey(20 days)

Consumer survey(15 days)


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It helps in ascertaining the time schedule.

It makes control easier for themanagement.

It identifies the most critical elements in theproject.


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PERT has very popular technique used forproject planning and control. Itaccomplish the project within a shortperiod of time.

The three sets of time used in thistechniques are optimistic time, pessimistic

time, and normal time.


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1 2 53

8

7

4 10

9

6

2 location of sitecompleted

3 BUILDING for officeselected

4 cleaning of buildingstarted

5 Interior decorator startwork

6 Interior decoratorfinishes work

7 opening of ads nannounced

8 list of invitees for opng

9 invitation sent

10 office formally

1 location of site started


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It determines the expected time requiredfor completing each activity.

It helps complete the project within a given

period of time. It helps management handle uncertainties

involved in the project.


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PERT CPM

1. It is an event orientedapproach.

2. It is time based.

3. It is average time.

4. It allows uncertainty

1. It is an activity orientedapproach.

2. It is cost based.

3. It does not averagetime.

4. It does not allowuncertainty.


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Presented by :-Anoop.S (813)Anupama.H(814)Jayashri.H(819)

P A(826)

Controlling Presentatio

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