1.Group 1Maria ApostolJulianne BocalShayne IsokEduardo Platino III

2. Learning Objectives: At the end of the chapter, the student is expected to understand the following:Definition of ControllingThe Nature of ControllingThe Control ProcessCharacteristics of ControlTypes of ControlControl Methods and Systems 3. Definition of Controlling Controlling is the process of Controlling can be considered as measuring and correctingthe activity for knowing and activitiescorrecting important changes inSuch as plans, organization, the activities that are planned.personnel, of an organization. Controlling should be never be Controlling determines what isconsidered negative; it isbeing tackled by evaluating the managerial necessity and a help,performance and, if there is anot an impediment or hindrancedeviation, by applying correctivemeasures so that the activitiestake place according to plans. 4. The Nature of ControllingPlanning is related to controlling.Planning identifies the things to do for futureaccomplishment. The failure of controlling wouldmean failure of planning, and success of planningmeans success of controlling. After measuring the plans, and knowing thatthe plans are not realistic, a modified or new planmust be formulated. 5. All forms of management controls are designed togive the manager information regarding progress. Themanager can use this information to:Prevent crises.If a manager does not know what is goingon, it is easy for small, readily solvedUpdate plans.problems to turn into crises.Remember that the final step in the planning process is to control the plan. Controls allowStandardization outputs. the manager to compare what is happening Problems and services can be standardized with what was planned.in terms of quantity and quality through theuse of good controls. Protect an organizations asset.Controls can protect assets fromAppraise employee performance. inefficiency, waste and pilferage.Proper controls can provide the managerwith objective information about employeeperformance.The Nature of Controlling 6. In exercising the control function, amanager measures the performance of anindividual, plans, or programs against theirpredetermined standards and takes correctiveaction if there are any deviations. Establishing standards.Thus, control involves: Measuring performance against the established standards. Comparison of actual performance. Taking corrective action when and where deviations from the standards occur. Making sure recommended corrective actions are followed through.The Control Process 7. Characteristics of Control Attuned to the activity. Controls shouldreflect the needs of people using them.For instance, manufacturing peoplemay require a king of control which Control must be forward-looking.may not be applicable for marketingRather than relying on past indicatorspeople.or historical reports all the time, forecasts and other forward-looking Deviations must be identified quickly. devices must be used. For instance,What is the use of checking thefocusing on probable problem areasprocess or parts after they breakand thus drawing attention fordown?corrective action improved effectiveness. 8. Control must be strategically oriented.This involves selecting of the crucialpoints at which control is applied. Careshould be exercised in selecting thesecrucial points. Control should be economical. The cost of Control should be flexible. Controlsestablishing and maintaining controlsshould permit for unexpected changes or should not exceed the benefits to besituations. Rigidity destroys effectiveness derived from them.of control. Control should be easy to understand.Unless people understand their purposeand the operations, they become useless.Control should indicate correctiveaction. Who or what is causingdeviations and what should be doneabout it is the important aspect ofcontrol.Characteristics of Control 9. Control Methods and SystemsThere are two kinds of control methods: 1.Behaviour Control (or personal) 2. Output Control (or impersonal) is based controls is based on direct personalon the measurement of outputs . Tracking surveillance. production records or sales are examples of The first line supervisor maintains a close output control. personal watch over subordinates is using behaviour control.Thomas Peters and Robert Waterman strongly emphasize the need for managers at all levels totake a hands- on approach to managing. By hands-on, they mean regularly mixing withsubordinates and visiting them at their workplaces. Thus, organizations need to use a mix ofoutput and behaviour controls; each serves different organizational needs. A budget isstatement of expected results or requirements expressed in financial or numerical terms. 10. Flexible Budgets. In order to overcome many of the shortcomings resulting frominflexibility, flexible (variable) budgets are designed to vary with the volume of sales orsome other measure of output. Because of their nature, flexible budgets are generallylimited to expense budgets.Zero-Base Budgeting. Is one approach to budgeting that has received attention over thelast several years. It requires each manager to justify an entire budget request in detail,from scratch. Under zero-base budgeting, each activity under a managers discretion isidentified, evaluated, and ranked by importance.Written Reports these are the two basic types of written reports, analytical andinformational. Analytical reports interpret the facts they present; informational reportsonly present the facts.Steps in preparing a written report:planning the attack on the problem Collecting the facts Organizing the facts Interpreting the facts Writing the report Control Methods and Systems