NATURE,CONCEPT NATURE,CONCEPT AND SCOPE OF AND SCOPE OF MANAGEMENT MANAGEMENT

CONTROL SYSTEMCONTROL SYSTEM

NAME: SAHINA SETHINAME: SAHINA SETHI

ROLL NO: 24ROLL NO: 24

REFRENCESREFRENCES STUDY/REFRENCE MATERIAL FOR STUDY/REFRENCE MATERIAL FOR

PGDBM : MANAGEMENT PRINCIPLES PGDBM : MANAGEMENT PRINCIPLES AND TECHNIQUES [PG: 409-424]AND TECHNIQUES [PG: 409-424]

ESSENTIALS OF MANAGEMENT ESSENTIALS OF MANAGEMENT HAROLD KOONTZ AND HEINZ WEIHRICH HAROLD KOONTZ AND HEINZ WEIHRICH

[PG: 345-357][PG: 345-357] www.vhcn.com/rpi/mcs.htmwww.vhcn.com/rpi/mcs.htm WWW.CPAJOURNAL.COMWWW.CPAJOURNAL.COM WWW.CONSOCIATES.COMWWW.CONSOCIATES.COM WWW.ERPWEB.COMWWW.ERPWEB.COM WWW.REPOSITORY.UPENN.EDUWWW.REPOSITORY.UPENN.EDU

CONTENTSCONTENTS MEANING OF CONTROLMEANING OF CONTROL AIMAIM DEFINITIONSDEFINITIONS MANAGEMENT CONTROL SYSTEMMANAGEMENT CONTROL SYSTEM KEY PRINCIPLESKEY PRINCIPLES NATURE NATURE OBJECTIVESOBJECTIVES PROCESSPROCESS BLOCK DIAGRAM OF CONTOL PROCESSBLOCK DIAGRAM OF CONTOL PROCESS CORPORATE EXAMPLECORPORATE EXAMPLE ESSENTIALSESSENTIALS SCOPESCOPE

WHAT IS MEANING OF WHAT IS MEANING OF “CONTROL” ???“CONTROL” ???

CONTROL IS TO GUIDECONTROL IS TO GUIDE

POWERPOWER

AUTHORITY TO DIRECTAUTHORITY TO DIRECT

VERY IMPORTANT FUNCTION AND VERY IMPORTANT FUNCTION AND ELEMENT OF MANAGEMENTELEMENT OF MANAGEMENT

AIM OF AIM OF CONTROLCONTROL

DEFINITIONS OF CONTROLDEFINITIONS OF CONTROL BRECH : BRECH : “ CONTROL IS THE PROCESS OF CHECKING THE “ CONTROL IS THE PROCESS OF CHECKING THE

ACTUAL PERFORMANCE AGAINST THE AGREED STANDARDS ACTUAL PERFORMANCE AGAINST THE AGREED STANDARDS OR PLANS WITH A VIEW TO ENSURING ADEQUATE PROGRESS OR PLANS WITH A VIEW TO ENSURING ADEQUATE PROGRESS OR SATISFACTORY PERFORMANCE AND ALSO RECORDING OR SATISFACTORY PERFORMANCE AND ALSO RECORDING SUCH EXPERIENCE AS IT GAINED AS CONTRIBUTION TO SUCH EXPERIENCE AS IT GAINED AS CONTRIBUTION TO POSSIBLE FUTURE NEEDS ”POSSIBLE FUTURE NEEDS ”

ERNEST DALE : ERNEST DALE : “ THE MODERN CONCEPT OF “ THE MODERN CONCEPT OF CONTROL ENVISAGES A SYSTEM THAT NOT ONLY PROVIDES CONTROL ENVISAGES A SYSTEM THAT NOT ONLY PROVIDES A HISTORIC RECORD OF WHAT HAS HAPPENED TO THE A HISTORIC RECORD OF WHAT HAS HAPPENED TO THE BUSINESS AS A WHOLE BUT ALSO PINPOINTS THE REASONS BUSINESS AS A WHOLE BUT ALSO PINPOINTS THE REASONS WHY IT HAS HAPPENED AND PROVIDES DATA THAT ENABLES WHY IT HAS HAPPENED AND PROVIDES DATA THAT ENABLES THE CHIEF EXECUTIVE OR THE DEPARTMENTAL HEAD TO THE CHIEF EXECUTIVE OR THE DEPARTMENTAL HEAD TO TAKE CORRECTIVE STEPS IF HE FINDS HE IS ON THE WRONG TAKE CORRECTIVE STEPS IF HE FINDS HE IS ON THE WRONG TRACK ” TRACK ”

MANAGEMENT CONTROL MANAGEMENT CONTROL SYSTEMSYSTEM

BASIC POSTULATES :BASIC POSTULATES :

SHORT INTERVAL MEASUREMENTSHORT INTERVAL MEASUREMENT

FIRST LINE MANAGEMENTFIRST LINE MANAGEMENT

KEY PRINCIPLESKEY PRINCIPLES

DELEGATIONDELEGATION

MOTIVATIONMOTIVATION

MEASUREMENT OF MEASUREMENT OF ACHIEVEMENTACHIEVEMENT

NATURE OF MANAGEMENT NATURE OF MANAGEMENT CONTROL SYSTEMCONTROL SYSTEM

1.1. IMPORTANT MANAGEMENT IMPORTANT MANAGEMENT FUNCTIONFUNCTION

2.2. CONTINUOUS PROCESSCONTINUOUS PROCESS

3.3. MECHANISMMECHANISM

4.4. DYNAMIC PROCESSDYNAMIC PROCESS

5.5. FORWARD LOOKINGFORWARD LOOKING

6.6. ACTION ORIENTEDACTION ORIENTED

7.7. CO-ORDINATE INTEGRATED CO-ORDINATE INTEGRATED SYSTEMSYSTEM

OBJECTIVES OF MANAGEMENT OBJECTIVES OF MANAGEMENT CONTROL SYSTEMCONTROL SYSTEM

1.1. FINDING OUT WHY A CERTAIN FINDING OUT WHY A CERTAIN THING IS HAPPENINGTHING IS HAPPENING

2.2. COMPARISIONSCOMPARISIONS

3.3. INCREASE THE EFFICIENCYINCREASE THE EFFICIENCY

4.4. DECIDE CORRECTIVE ACTIONSDECIDE CORRECTIVE ACTIONS

5.5. CO-ORDINATIONCO-ORDINATION

PROCESS OF MANAGEMENT PROCESS OF MANAGEMENT CONTROL SYSTEMCONTROL SYSTEM

1.1. FIXING STANDARDSFIXING STANDARDS

2.2. MEASUREMENT OF PERFORMANCEMEASUREMENT OF PERFORMANCE

3.3. COMPARISONCOMPARISON

4.4. CORRECTION OF DEVIATIONCORRECTION OF DEVIATION

THE CONTROL PROCESSTHE CONTROL PROCESS

DESIRED PERFORMANCE

ACTUAL PERFORMANCE

MEASUREMENTOF

ACTUALPERFORMANCE

COMPARISON

IMPLEMENTATIONOF

CORRECTIVEACTIONS

PROGRAM OF

CORRECTIVE ACTIONS

ANALYSISOF

CAUSES OFDEVIATION

IDENTIFICATIONOF

DEVIATIONS

CORPORATE EXAMPLECORPORATE EXAMPLE

The Vantage venture is a new addition to the The Vantage venture is a new addition to the Vantage Healthcare Family of CompaniesVantage Healthcare Family of Companies

ESSENTIALS OF MANAGEMENT ESSENTIALS OF MANAGEMENT CONTROL SYSTEMCONTROL SYSTEM

1.1. SUITABILITYSUITABILITY

2.2. SIMPLICITYSIMPLICITY

3.3. OBJECTIVITYOBJECTIVITY

4.4. ECONOMICALECONOMICAL

5.5. FLEXIBILITYFLEXIBILITY

6.6. QUICK REPORTINGQUICK REPORTING

7.7. SUGGESTIVESUGGESTIVE

8.8. SELF CONTROLSELF CONTROL

9.9. FEEDBACKFEEDBACK

SCOPE OF MANAGEMENT SCOPE OF MANAGEMENT CONTROL SYSTEMCONTROL SYSTEM

1.1. CONTROL OVER POLICIESCONTROL OVER POLICIES2.2. CONTROL OVER ORGANISATIONCONTROL OVER ORGANISATION3.3. CONTROL OVER PERSONNELCONTROL OVER PERSONNEL4.4. CONTROL OVER WAGES AND SALARIESCONTROL OVER WAGES AND SALARIES5.5. CONTROL OVER COSTSCONTROL OVER COSTS6.6. CONTROL OVER METHODSCONTROL OVER METHODS7.7. CONTROL OVER CAPITAL EXPENDITURECONTROL OVER CAPITAL EXPENDITURE8.8. CONTROL OVER PRODUCTIONCONTROL OVER PRODUCTION9.9. CONTROL OVER RESEARCH & DEVELOPMENTCONTROL OVER RESEARCH & DEVELOPMENT10.10. CONTROL OVER EXTERNAL RELATIONSCONTROL OVER EXTERNAL RELATIONS11.11. OVERALL CONTROLOVERALL CONTROL

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