copy of controlling techniques.ppt

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Control Systems and Control Techniques

Faculty-

Mrs. Anamika Sharma

Principles And Practices Of Management

By-Pooja Boolani

Mohd. Arshad

Neelu Bhur ia

MS sunita

Mahendra

MBA SEM -I1


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CONTROL AND CONTROL SYSTEMS

What gets measured happens

What is

important to

know about the

control process? What are some

organizational

control systemsand techniques?

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Control Systems

Controlling is one of the four management

functions.

Control begins with objectives and standards.

Control measures actual performance.

Control compares results with objectives and

standards.

Control takes corrective action as needed.

Control focuses on work inputs, throughputs, and

outputs.

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Control Systems

ControllingThe process of measuring performance and taking action

to ensure desired results

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Control Systems Output Standard

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

Input Standard

Measures work efforts that go into a performance

task

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Types of controlling techniques

- General Techniques of Control

- Special Techniques Of Control

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General Techniques of Control

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1.Personal Observation

Through Direct observation and personal observation

a manager can periodically observe his subordinates ,their work methods and their results.

Observation leads to evaluation of work and

encourages employees to perform well.

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2.Setting examples

manager should put his ideal behavior in directing hissubordinates.a manager can teach by his actions and

behavior.

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3.Records and reports

Through records and reports a manager can measureperformance and results.He can maintain that also for

future use.

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4.Policies and procedures

These reflect the past experiences of many managers

and act as guides for managers to use in controllingthe behavior and output of workers.

Policies provide means of self-control and are primary

instrument to coordination and control.

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5.charts and manuals

Progress charts permit each department to measure the

performance of its employees against the past results.

Manuals also serve the purpose of management

control.

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6.Standing rules and l imitationStanding orders-tell employees what to do under given

set of conditions.

Standing procedures-tell employees spell out thesequence of given conditions.

Definite limits are placed beyond which employees

with decision making power cannot go withoutexpress permission.

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7.Written I nstructions

Written instruction through circular letters ,bulletin,notes etc are used to check the subordinate's

performance.

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8.Censure

It is any form of criticism or disapproval .It may bereprimand or ridicule for the careless employees .

Should be used with wisdom and understanding.

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9.Discipl inary Action

when an employee makes mistakes or has become a

chronic absentee ,may be given a warning of action

against him . In serious matters employees can be

suspended to control their irregular behavior.

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10.control unit or control selection

it is used to control overall performance of the

organization. Also known as management controldepartment. Supplies facts ,recommendations to have

orderly and efficient management. It reviews

directives ,methods and policies.

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11.Social Control Devices

Are the norms ,customs ,conventions ,unwritten laws

,habits ,practices ,status ,and prestige systems etc.

which are organizationally determined value to check

employees behavior.

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12.Rewards

It is related to verbal form or linked with performance

and motivation Or performance evaluation or work

satisfaction. Work targets achieved in accordance with

present targets.

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13.Budgets

Give the effective means of controlling operations.Actual performance is measured and compared against

budgeted standards.

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14.Accounting

it lays down for recording the business transactionsand operations. This system helps to check past figures

and decide the best action to be taken in future.

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15.I nternal Auditing

it is an examination of how well an organization is

functioning. It involves a careful look at operations

compared with plans. It is concerned with finding out

the effectiveness of management policies.

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16.Statistical data

Can be useful in following processes

Purchasing Controlbuying what is needed at the right quality, at a good

price, and for on-time delivery.

Supply Chain Managementuses information technology to link suppliers and

purchasers in cost efficient ways.

Inventory Controlensures that inventory is only big enough to meet

immediate needs.

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Economic Order Quantity

places new orders when inventory levels fall to

predetermined points. Just-in-time Scheduling

routes materials to workstations just in time for use.

Total Quality Management (TQM)commits to quality objectives, continuous

improvement, and doing things right the first time.

Quality Circleis a small group that meets regularly to discuss ways

of improving work quality

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17.Break-even analysis

It shows the relation between different volumes ,costs

,sales price and sales mix to profits.

Breakeven is that level of volume at which revenue isexactly equal to the cost and helps to identify the

minimum sales volume to prevent a loss or achieve

established profit objectives.How to Calculate a

Breakeven PointBreakeven Point =

Fixed Costs / (Price -Variable Costs)

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18.Self-control

It occurs through proper orientation and training.Employees work attitude also serves to reinforce their

self control.

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Special Techniques Of Control

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1.Human Asset Accounting

Costs associated with recruiting ,selecting and training

employees are treated as expense rather than

investment. To control cost of human resources this

technique is developed and used.

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2.Standard Costing

in this system standards for materials ,labor ,overheads,and other components are laid down and actual costs

are compared with standard costs.

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3.Cash F low Analysis

It helps in the assessment of the cash resources

available to a firm ,their uses ,and their timing.

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4.Management I nformation System

It is developed to collect ,process and distributeinformation about the operations of the firm to its

managers and others.

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5.Cybernetic Control System

based on self-regulating procedures that automaticallydetect and correct deviations from planned activities

and effectiveness levels.

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Characteristics of a good control system /


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Characteristics of a good control system /

techniques

Specially designed

Economical

Flexible

Accurate

Timely

Impartial And Coordinated

Focus On ResultsFollow Organizational Patterns

Forward Looking

Periodic Review 33


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Thank You

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Any queries??????????

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