controlling - management

CONTROLLING

CONTROLLING

Control refers to the task of ensuring that activities are producing the desired results.

Controlling is determining what is being accomplished – that is evaluating the performance and if necessary applying corrective measures so that the performance takes place according to plans.

CONTROLLING AND OTHER FUNCTIONS

1. Planning as the basis2. Action as the Essence3. Delegation as the Key – responsible and

having authority to perform controlling functions

4. Information as the Guide

IMPORTANCE OF CONTROL

1. Reduces uncertainties2. Eliminates wastages and makes management

accountable3. Prevents misuse of delegated authority4. Ensure better coordination among the

functions of management5. Making planning effective6. Organisational Effectiveness

REQUISITIES OF GOOD CONTROL SYSTEM

1. Reflecting Organisational Needs2. Forward Looking3. Promptness in Reporting Deviations4. Pointing out Exceptions at critical points5. Objective – definite and clear and positive6. Flexible7. Economical8. Simple9. Motivating10. Reflecting Organisational Pattern

PROCESS OF CONTROL

1. Establishment of standards2. Measurement of performance3. Comparing performance with the

standards4. Taking corrective action

CONTROL TECHNIQUES

-OPERATIONAL CONTROL TECHNIQUES

-OVEALL ORGANISATIONAL CONTROL TECHNIQUES

OPERATIONAL CONTROL

OC is exercised at the level of various operating units by the concerned operating managers

OPERATIONAL CONTROL

1. Financial Control2. Operating Control3. Inventory Control

OVERALL CONTROL TECHNIQUES

1. Ratio Analysis2. Management Audit3. Human Resource Accounting

OPERATIONAL CONTROL - FINANCIAL CONTROL

Financial control is relevant for those aspects of business operations whose outcomes are expressed in monetary terms.


1. BUDGETARY CONTROL

It is the process of comparing the actual results with the corresponding budget data in order to approve accomplishments or to remedy differences by either adjusting the budget estimates or correcting the cause of the difference


2. CONTROL THROUGH COSTING

Involves the control over costs in the light of certain pre-determined costs usually known as standard costs

Standard costs are pre-determined operation costs computed to reflect quantities, prices and level of operations


3. BREAK-EVEN ANALYSIS

Relationships of fixed costs, variable cost, price level of output and sales mix to the profitability of the organisation


4. RESPONSIBILITY ACCOUNTING

-Focuses attention on management by objectives-Each person is responsible for his area of

operation and for effective control he must know what is costs should be and what his costs were.


5. INTERNAL AUDIT

Ensuring that accounts properly reflects the facts

OPERATIONAL CONTROL - OPERATING CONTROL

1. QUALITY CONTROL2. QUALITY CONTROL THROUGH QUALITY

CIRCLE

OPERATIONAL CONTROL - INVENTORY CONTROL

1. ABC CONTROL A – high value items - quantity lessB – Average value and quantityC – low value and quantity in large

2. ECONOMIC ORDER QUANITITY3. PERT/CPM

OVERALL CONTROL TECHNIQUES

1. FINANCIAL RATIO ANALYSIS-Liquidity Ratios-Activity Ratios-Leverage Ratios-Profitability Ratios

2. RETURN ON INVESTMENT3. MANAGEMENT AUDIT4. HUMAN RESOURCE ACCOUNTING

ROLE OF INFORMATION TECHNOLOGY IN CONTROL

MIS designed to supply information required for effective management of an organisation

READING

Principles of Management – Harold Koontz, A Ramachandra Aryasri

Principles of Management – L.M.Prassad

Principles & Practice of Management – T.N Chabbra

controlling - management

Education