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    Principles of Management Controlling

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    kritiw
    The document discusses the concept of controlling in management. Controlling involves establishing standards, measuring performance, and correcting variations to ensure organizational objectives and plans are accomplished. The basic control process involves a feedback loop where desired performance is compared to actual performance to identify deviations and implement corrective actions. Effective control requires tailoring controls to plans, positions, and individuals while ensuring flexibility, objectivity, and economy of controls. Qualitative techniques like audits, observations, and appraisals and quantitative techniques like variance analysis, Gantt charts, and break-even analysis are used for control.

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    Principles of Management Controlling

    Uploaded by

    kritiw
    124 views8 pages
    The document discusses the concept of controlling in management. Controlling involves establishing standards, measuring performance, and correcting variations to ensure organizational objectives and plans are accomplished. The basic control process involves a feedback loop where desired performance is compared to actual performance to identify deviations and implement corrective actions. Effective control requires tailoring controls to plans, positions, and individuals while ensuring flexibility, objectivity, and economy of controls. Qualitative techniques like audits, observations, and appraisals and quantitative techniques like variance analysis, Gantt charts, and break-even analysis are used for control.

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    Controlling

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    The document discusses the concept of controlling in management. Controlling involves establishing standards, measuring performance, and correcting variations to ensure organizational objectives and plans are accomplished. The basic control process involves a feedback loop where desired performance is compared to actual performance to identify deviations and implement corrective actions. Effective control requires tailoring controls to plans, positions, and individuals while ensuring flexibility, objectivity, and economy of controls. Qualitative techniques like audits, observations, and appraisals and quantitative techniques like variance analysis, Gantt charts, and break-even analysis are used for control.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    124 views8 pages

    Principles of Management Controlling

    Uploaded by

    kritiw
    The document discusses the concept of controlling in management. Controlling involves establishing standards, measuring performance, and correcting variations to ensure organizational objectives and plans are accomplished. The basic control process involves a feedback loop where desired performance is compared to actual performance to identify deviations and implement corrective actions. Effective control requires tailoring controls to plans, positions, and individuals while ensuring flexibility, objectivity, and economy of controls. Qualitative techniques like audits, observations, and appraisals and quantitative techniques like variance analysis, Gantt charts, and break-even analysis are used for control.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8

    PRINCIPLES OF

    MANAGEMENT

    CONTROLLING
    by
    Dr. Gopal Iyengar
    Director - KIAMS
    CONTROLLING
    Measurement and Correction of Performance in
    order to make sure that Enterprise Objectives
    and plans to attain them are accomplished

    BASIC CONTROL PROCESS:


     Establish Standards
     Measure performance
     Correct variations
    The Links Between Controlling and
    the Other Management Functions

    Planning Organizing Leading Controlling

    Control
    FEEDBACK LOOP OF MANAGEMENT
    CONTROL

    Measure- Comparison
    ment of of actual
    Desired Actual
    actual performance
    performance performance
    performance against
    standards

    Implemen- Program of Analysis of Identifica-


    tation of corrective causes of tion of
    corrections action deviations deviations
    EFFECTIVE CONTROL REQUIREMENTS
    1) Tailoring Controls to Plans and Positions
    2) Tailoring Controls to Individual Managers
    3) Making sure Controls point up Exceptions at
    Critical Points
    4) Objectivity of Controls
    5) Flexibility of Controls
    6) Fitting Control System to Organisational Culture
    7) Economy of Controls
    8) Establishing Controls that lead to Corrective
    Actions
    Qualitative Control Techniques
    Technique Definition
    Examination of activities or records to verify their
    Audit accuracy or effectiveness
    External Verification of financial records by external agency or
    audit individual
    Internal Verification of financial records by an internal group of
    audit personnel
    Management Use of auditing techniques to evaluate the overall
    audit effectiveness of management
    Personal Manager’s first-hand observation of how well plans are
    observation carried out
    Performance Formal method or system of measuring, evaluating, and
    appraisal reviewing employee performance
    General guideline to follow in making decisions and
    Policy taking action
    Quantitative Control Techniques
    Technique Definition

    Chart depicting planned and actual progress of work on


    Gantt chart a project

    Method of scheduling activities and events using time


    CPM/PERT estimates

    Break-even
    Ratio of fixed costs to price minus variable costs
    analysis

    Economic- Inventory level that minimizes ordering and carrying


    order quantity costs

    Method of assigning value to inventory; A items are


    ABC analysis worth more than B or C items

    Variance
    Major control device in manufacturing
    analysis
    Master
    budget
    Capital-
    expenditure Cash budget
    budget Types of
    Budgets
    Human Revenue-
    resources and-expense
    budget budget

    Materials
    Production
    purchase
    budget budget

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