management controlling

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Page 1: Management controlling
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GROUP MEMBERS

Md. Abu Jafor SadikID- 12133101244

Asif MahmudID- 12133101248

Salman Mahedi HasanID-12133101242

Omar FarukID-12133101236

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Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function 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.

Control is checking current performance against pre-determined standards contained in the plans, with a view to ensure adequate progress and satisfactory performance.- Harold Koontz

Definition of Controlling

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Controlling techniques vary from organization to organization. The controlling techniques may be various categories. The techniques are discussed below:

Types Of Controlling

I.Operational control: 1.Preliminary control 2.Screening control 3.Post action control

II .Financial control:1. Budgetary control2. Others tools of financial control

III.Structural control1.Bureaucratic control2.Clan control

Iv. Strategic control

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Operational Control

1.Preliminary controlIt concentrates on the resources-financial,materials,human and information that the organization brings in form the environment.

2. Screening controlit focus on meeting standards for products and /or service quality or quantity during the actual transformation process it self.

3. Post action control: It focuses on the outputs or results of the organization after the transformation process is complete.

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Financial control

1.budgetary control:

A budget is a plan expressed in numeral terms. organization establishes budgets for work groups, departments ,division and the whole organization.

2.Other tules of financial control:

Financial statements :a financial statement is a profile of some aspect of an organization’s financial

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Bureaucratic Control

� Bureaucratic Control– Control through a system of rules and standard

operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.

� Clan Control– The control exerted on individuals and groups in

an organization by shared values, norms, standards of behavior, and expectations.

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Steps in the control process:

– Step 1 — establish objectives and standards.

– Step 2 — measure actual performance.

– Step 3 — compare results with objectives and

standards.

– Step 4 — take corrective action as needed.

Controlling Process

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Four steps in the control process.

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Step 1 — establishing objectives and standards– Output standards

• Measure performance results in terms of quantity, quality, cost, or time.

– Input standards• Measure effort in terms of amount of work

expended in task performance.

Process Of Controlling

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Step 2 — measuring actual performance

– Goal is accurate measurement of actual

performance results and/or performance efforts.

– Must identify significant differences between

actual results and original plan.

– Effective control requires measurement.

Process Of Controlling

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Step 3 — comparing results with objectives and standards– Need for action reflects the difference between

desired performance and actual performance

– Comparison methods:• Historical comparison

• Relative comparison

• Engineering comparison

Process Of Controlling

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Step 4 — Taking corrective action– Taking action when a discrepancy exists

between desired and actual performance.– Management by exception

• Giving attention to situations showing the greatest need for action.

• Types of exceptions– Problem situation

– Opportunity situation

Process Of Controlling

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