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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
18-9
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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)
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