Orgman - Module 5 - Grade 11 - Abm Rizal - MR - Arnold Paombong
Orgman - Module 5 - Grade 11 - Abm Rizal - MR - Arnold Paombong
Orgman - Module 5 - Grade 11 - Abm Rizal - MR - Arnold Paombong
CHAPTER 7: CONTROLLING
A luxurious car without gasoline is similar to a viable business without carefully managed funds.
Who needs a non running vehicle that is good for display only? How can a business be successful
without the well managed funds required for its operation and expansion? This is where controlling
comes in. Essentially. Controlling is all about the acquisition of money and its useful disbursement.
It requires identification and reinforcement of the firm’s priorities and understanding how their
opeartions are going in order to ascertain where improvement is needed.
LEARNING OBJECTIVES:
1. Discuss the nature of controlling.
2. Describe the link between planning and controlling
3. Distinguish control methods and systems.
Page 1
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Controlling- a management function that involves ensuring that the work performance of the
organization’s members are aligned with the organization’s values and standards through
monitoring, comparing, and correcting their actions.
Management control makes sure:
That the firm’s operating cash flow is sufficient, efficient, and if possible, profitable when
invested.
That there is a continuous monitoring of the organization’s activities, followed by corrective
actions based on previously planned programs of action.
That task are completed with less errors by comparing these with previously set standards or
with competitor’s standards or standards prevailing in their industry setting.
Control techniques used for controlling financial resources, office management, quality assurance,
and others are essentially the same. The typical control process involves establishing standards,
measuring and reporting actual performance, and comparing it with standards, and taking actions.
Establishing standards means setting criteria for performance. Managers must be able to identify
priority activities that have to be controlled, followed by determining how these activities must be
properly sequenced. In doing so, managers will be able to set key performance standards that need
to be achieved. The value chain, or the proper sequencing of activities needed to convert the
company’s raw materials into finished products, is a valuable instrument for helping managers
determine and establish key performance standards.
What is Controlling?
Controlling is the main goal and responsibilities of all management in any enterprises. It is used to
compare the factual performance with the standard of the company, and to make sure that the
activities are performed according to the plan. Few features of Controlling are:
Planning Controlling
Definition
It is the first step on deciding what to do, how, Controlling is the main goal and
where and when a specific work has to be done responsibilities of all management in any
enterprise
Function
Process
It is the first process in building a business It is the last structure any business
Features
What you’ll learn to do: describe the different levels and types of control
In management, there are varying levels of control: strategic (highest level), operational (mid-level),
and tactical (low level). Imagine the president of a company decides to build a new company
headquarters. He enlists the help of the company’s officers to decide on the location, style of
architecture, size, etc. (strategic control). The project manager helps develop the project schedule
and budget (operational control). The general contractor directs workers, orders materials and
equipment for delivery, and establishes rules to ensure site safety (tactical control).
Control can be objective or normative. Objective control involves elements of the company that can
be objectively measured, such as call volume, profitability, and inventory efficiency. Normative
control means employees learn the values and beliefs of a company and know what’s right from
observing other employees.
PRACTICE QUESTION:
T.E. Lawrence was a hero in World War One. He had a strategic vision to use the Arabs against the
Turks in WW1. The British paid their Arab allies £220,000 a month in gold to fight. Lawrence
usually delivered the gold to Prince Faisal, who distributed it equitably. But while traveling in the
desert, Faisal was not available and Lawrence delivered it Faisal’s brother, Abdullah. Abdullah
distributed the gold to his tribe only. The other tribes and his British superiors were naturally
angry with him for his error. His superiors threatened to pull Lawrence from the field. This was a
huge failure of
Operational
Tactical
Strategic
Page 4
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Budgets. The budget remains the best known control device. Budget and control are, in fact
synonymous. An organization’s budget is an expression in financial terms of a plan for meeting the
organization’s goals for a specific period. A budget is an instrument of planning, management and
control. Budgets are used in two ways. To establish facts that must be taken into account during
planning and to prepare a description and financial information to be used by the chain of
command to request for and manage funds. At present, two major budget systems are used: these
are the zero- based budgeting (ZBB) and the planning, programming, ang budgeting system
(PPBS).
AUDITS – Internal auditing involves the independent review and evaluation of the organization’s
non tactical operations, such as accounting and and finances. As a management tool, the audit
measures and evaluates the effectiveness of management controls. Audit service provides an
independent audit of other operations which involve the utilization of funds and resources as well
as the fulfillment of management goals.
Page 5
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Day 3 Online
...
Core Functions of HR
Page 6
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Human resources (HR) professionals conduct a wide variety of tasks within an organizational
structure. A brief review of the core functions of human resource departments will be useful in
framing the more common activities a human resource professional will conduct. The core
functions can be summarized as:
Staffing
This includes the activities of hiring new full-time or part-time employees, hiring contractors, and
terminating employee contracts
Development
On-boarding new employees and providing resources for continued development is a key
investment for organizations, and HR is charged with maintaining a developmental approach to
existing human resources.
Compensation
Salary and benefits are also within the scope of human resource management. This includes
identifying appropriate compensation based on role, performance, and legal requirements.
Setting compensation levels to match the market, using benchmarks such as industry
standards for a given job function
Negotiating group health insurance rates, retirement plans, and other benefits with third
party providers
Discussing raises and other compensation increases and/or decreases with employees in the
organization
Ensuring compliance with legal and cultural expectations when it comes to employee
compensation
Achieving best practices in various industries include careful considering of safety and health
concerns for employees.
Page 7
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Ensuring compliance with legal requirements based on job function for safety measures (i.e.
hard hats in construction, available counseling for law enforcement, appropriate safety
equipment for chemists, etc.)
Implementing new safety measures when laws change in a given industry
Discussing safety and compliance with relevant government departments
Discussing safety and compliance with unions
Defending employee rights, coordinating with unions, and mediating disagreements between the
organization and its human resources is also a core HR function.
HR Competencies: This chart highlights a few of the key competencies expected of human
resource teams in organizations.
Human resource development combines training and career development to improve the
effectiveness of the individual, group, and organization.
Page 8
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
and rewarding of employees. HR also oversees organizational leadership and culture, and ensures
compliance with employment and labor laws.
Attraction
Employer brand was first used in the early 1990s to denote an organization’s reputation as an
employer. Since then, it has become widely adopted by the global management community.
Employer branding is “the image of your organization as a ‘great place to work.'” Just as a customer
brand proposition is used to define a product or service offer, an employee value proposition (EVP)
is used to define an organization’s employment offer. Likewise, the marketing disciplines
associated with branding and brand management have been increasingly applied by the human
resources and talent management community to attract, engage, and retain talented candidates
and employees.
Selection
The stages in selection include sourcing candidates by networking, advertising, or other methods.
The HR recruiter utilizes professional interviewing techniques to understand the candidate’s skills,
motivations to make a move, and to screen potential candidates using testing (skills or personality).
The process is meant to evaluate the candidate and also evaluate how the candidate will fit into the
organization. The recruiter will meet with the hiring manager to obtain specific position and type
information before beginning the process. After recruiters understand the type of person the
company needs, they begin the process of informing their network of the opportunity. Recruiters
play an important role by preparing the candidate and company for the interview, providing
feedback to both parties, and handling salary and benefits negotiations.
Training
Training and development (T&D) encompasses three main activities: training, education, and
development. Garavan, Costine, and Heraty, of the Irish Institute of Training and Development,
note that these ideas are often considered to be synonymous. However, to practitioners, they
encompass three separate, although interrelated, activities:
Training: This activity is both focused upon, and evaluated against, the job that an individual
currently holds.
Page 9
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Education: This activity focuses upon the jobs that an individual may potentially hold in the future,
and is evaluated against those jobs.
Development: This activity focuses upon the activities that the organization employing the
individual, or that the individual is part of, may partake in the future, and is almost impossible to
evaluate.
Assessment
A performance appraisal (PA) or performance evaluation is a systematic and periodic process that
assesses an individual employee’s job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual employees are
considered as well, such as organizational citizenship behavior, accomplishments, potential for
future improvement, and strengths and weaknesses.
To collect PA data, there are three main methods: objective production, personnel, and judgmental
evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation
methods. A PA is typically conducted annually. The interview could function as “providing
feedback to employees, counseling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions.”
Rewarding
Remuneration is the total compensation that employees receive in exchange for the service that
they perform for their employer. Typically, this consists of monetary rewards, also referred to as
wage or salary, and complementary benefits including healthcare, pension plans, and stock
options. The HR department plays a critical role in determining raises or bonuses based on
employee performance.
Demand Planning
HR forecasting is the process of ascertaining the net requirements for staff by determining present
and future HR needs.
Key Points
P a g e 10
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
Key Terms
Day 4 Modular
ACTIVITY 1
Congratulations!
You have completed this
module.
P a g e 11
SAINT JOSEPH ACADEMY
OF SAN JOSE, BATANGAS INCORPORATED
SENIOR HIGH SCHOOL DEPARTMENT
ABM Organization and Management Concepts, Caselets, and Exercises / Garalde/ Frias Pefianco/
PHOENIX
P a g e 12