ISB S PRESENTATION ON-

CONTROLLI NG

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CONTENTS

1.Introduction 2.Relation B\W Planning & Control 3.Importance Of Control 4.Basic & Critical Control Process 5.Stages Of Controlling

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It is the one of the most

Con troll in g

important element of management It is used to take a systematic approach to meet desired result controlling can be defined as determine what is being accomplished evaluating the performance & if necessary applying corrected measures so

8/20 Relation2 between planning and /1 control It has been pointed out that planning and

control are inseparable. They are also regarded as Siamese twins of management.

NEW PLANS

PLANNING

IMPLEMENTATIO N OF PLANS

CONTROLLING: COMPARING PLANS WITH RESULTS

NO UNDESIRABL E DEVIATION FOR PLANS

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e btitl u ter s s it Ma to ed Click CLOSE RELATIONSHIP OF PLANNING AND style CONTROLLING

CORRECTIVE ACTION

Impo rtan of co ce ntro l

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The need and necessity of control is felt

due to various factor. The basic need of control is the setting of the standards. E.g. malfunction Spherion corporation and Red Cross during hurricane Katrina in the year 2005.

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The Con Basi trol Proc c ess

Control technical &

system are essentially the same for cash office procedure morale and product quantity It involves 3 step 1)Establishing a standard 2)Measuring performance against the standard 3)Correcting variation from standard plans

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Esta blish ing a stan dard

The first step in control

process logically would be to establish a plans. Standard are simply criteria of performance. They are selected points in an entire planning program.

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Mea surin perf g orm agai ance nst t hese stan dard

The measurement of

performance against standards should ideally be done on a forward looking basis Deviation should be disclosed early as possible If standard are appropriately drawn and if means are available for determining exactly what subordinates are

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Corr ectio n of devi ation

Correction of deviations

is the point at which control can be seen as a part of the whole system of management. Managers may correct deviations by redrawing their plans or modifying their goal Also it may be corrected by additional staffing.

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cal c ontr ol poin ts Criti

A manager must

choose points for special attention and ensure that whole operation is proceeding as planned The points selected for control should be critical Principle of critical point control states that Effective control requires attention to those factors critical to

Type Criti s of ca l P oint Stan dard

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In practice standard tend to be of following types 1)Physical standards 2)Cost standards 3)Capital standards 4)Revenue standards 5)Program standards 6)Intangible standards 7)Goals as standards 8)Strategic plans as control points fo

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Phys stan ical dard s

It is nonmonetary

measurement It can be found commonly at the operating level, where materials are used, labour is employed, services are rendered, and goods are produced Few eg labor hours per unit of output ton miles of freight traffic carried.

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There are three stages

Stag es o f cont rollin g

of controlling Feed forward controlling Concurrent controlling Feedback controlling

FEED FORWARD CONTROL

CONCURRENT CONTROL

INPUT

PROCESSING

OUTPUT

FEEDBACK CONTROLS

STAGES OF CONTROL

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Feed forward controlling I t is u

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sed the prob to anti cipa lem I t in v te of in olves ev pu t and aluation corr ectiv takin e ac g It at tions tem pts t the li m it o rem ation lo g i o n ta in tim ve king actio e corr n ectiv An e e ffect forw ard ive feed cont mee rol s t fol houl lowi requ ng d i

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Important variable

Feed forw cont ard rollin cont g .

must be identified A model of the system should be developed Model should be reviewed regularly Data on input variable must be regularly collected and put into system

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It measures the result

of an action. If any deviation is found corrective action is taken. This is require because sometimes feed forward and concurrent is not possible to apply.

Feed back cont rollin g

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DESIRED PERFORMANCE IMPLEMENTATIO N OF CORRECTION CORRECTIVE ACTION PLAN ANALYSIS OF CAUSES OF DEVIATION

ACTUAL PERFORMANCE

MEASUREMENT OF PERFORMANCE

COMPARISON OF ACTUAL AND STANDARD

IDENTIFICATION OF DEVIATION

MANAGEMENT CONTROL PROCESS

THANK YOU!
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