Controlling

MG 6851 PRINCIPLES OF
MANAGEMENT
UNIT 5
CONTROLLING AS A FUNCTION OF
MANAGEMENT
Compiled by Dr.M.Balasubramanian

Qualities of an effective control system
• Control is the process of monitoring
activities to ensure that they are being
accomplished as planned and correcting
any significant deviations.
Unit 5 : Controlling
• Accuracy
• Timeliness
• Economy
• Flexibility
• Acceptability
• Integrity
• Strategic placement
• Corrective action
• Emphasis on the
exception

1. Accuracy: Accurate information is essential for effective managerial decisions. Inaccurate controls
would divert management efforts and energies on problems that do not exist or have a low
priority and would fail to alert managers to serious problems that do require attention.
2. Timeliness: If information about problems does not reach management in a timely manner, then
such information may become useless and damage may occur.
3. Flexibility: Technological changes occur very fast. A rigid control system would not be suitable for
a changing environment. An effective control system is one that can be updated quickly as the
need arises.
4. Acceptability: A control system that is difficult to understand can cause unnecessary mistakes and
frustration to workers. Employees must agree that such controls are necessary and will not have
any negative effects on their efforts to achieve their personal as well as organizational goals.
5. Integration: When the controls are consistent with corporate values and culture, they work in
harmony with organizational policies and hence are easier to enforce. These controls become an
integrated part of the organizational environment and thus become effective.
6. Economic feasibility:
The cost of a control system must be balanced against its benefits. The system must be
economically feasible and reasonable to operate.
7. Strategic placement:
Effective controls should be placed and emphasized at such critical and strategic control points
where failures cannot be tolerated and where time and money costs of failures are greatest.
8. Corrective action:
An effective control system not only checks for and identifies deviation but also is programmed
to suggest solutions to correct such a deviation.
9. Emphasis on exception:
Only important deviations are brought to the attention of management, In other words,
management does not have to bother with activities that are running smoothly. This will ensure
that managerial attention is directed towards error and not towards conformity.

• Market control emphasizes the use of external
market mechanisms such as price competition
and market share.
• Bureaucratic control emphasizes authority and
relies on administrative rules, regulations,
procedures, and policies.
• Clan control designs control systems in which
employee behaviors are regulated by the shared
values, norms, traditions, rituals, beliefs, and
other aspects of the organization’s culture.
Control approaches

What is the control process? Controlling
– The process of measuring performance and taking action to ensure
desired results.
– Has a positive and necessary role in the management process.
– Ensures that the right things happen, in the right way, at the right
time.
– Organizational learning and after-action review.
 Steps in the control process:
Step 1 — Establish objectives and standards.
Step 2 — Measure actual performance.
Step 3 — Compare results with objectives and standards.
Step 4 — Take corrective action as needed.

Control process
 Step 1 — establishing objectives and standards
– Output standards
• Measure performance results in terms of quantity, quality, cost, or time.
– Input standards
• Measure effort in terms of amount of work expended in task performance.
 Step 2 — measuring actual performance
– Goal is accurate measurement of actual performance results
and/or performance efforts.
– Must identify significant differences between actual results and
original plan.
– Effective control requires measurement.

Control process contd..
 Step 3 — comparing results with objectives & standards
– Need for action reflects the difference between desired
performance and actual performance
– Comparison methods:
• Historical comparison, Relative comparison & Engg. Comparison
 Step 4 — taking corrective action
– Taking action when a discrepancy exists between desired
and actual performance.
– Management by exception
• Giving attention to situations showing the greatest need for action.
• Types of exceptions
Problem situation (below standard)
Opportunity situation (above standard)

CLASSIFICATION OF CONTROLS
Managers have two broad options with respect to control.
• They can rely on people to exercise self-control (internal)
over their own behavior.
• Alternatively, managers can take direct action (external) to
control the behavior of others.
• Internal Controls
The potential for self-control is enhanced when capable
people have clear performance objectives and proper
resource support.
• External Controls
Performance appraisal systems, compensation and benefit
systems, employee discipline systems, and management-by-
objectives

TYPES OF CONTROLS
 Feedforward controls …
– Employed before a work activity begins.
– Ensures that:
1. Objectives are clear 2. Proper directions are established. 3. Right resources
are available.
Focuses on quality of resources.
 Concurrent controls …
– Focus on what happens during work process.
– Monitor ongoing operations to make sure they are being done according to
plan.
– Can reduce waste in unacceptable finished products or services.
 Feedback controls …
– Take place after work is completed.
– Focus on quality of end results.
– Provide useful information for improving future operations.

The role of feedforward, concurrent, and
feedback controls in organizations.

CONTROL TECHNIQUES

TRADITIONAL CONTROL TECHNIQUES
• Statistical Data
Statistical analysis involves collecting and scrutinizing every data sample in a set of
items from which samples can be drawn. A sample, in statistics, is a representative
selection drawn from a total population. Information is presented in the form of tables,
graphs, charts etc., it facilitates comparison of performance with the standards laid and with
previous years’ performance.
• Break even point analysis
A break-even analysis is an analysis to determine the point at which revenue received
equals the costs associated with receiving the revenue. Break-even analysis calculates
what is known as a margin of safety, the amount that revenues exceed the BEP
Operational Audit
Operational auditing, in its broadest sense, is the regular and independent appraisal,
by a staff of internal auditors, of the accounting, financial, and other operations of a
business
• Personal Observation
Manager collect first hand information about the performance of the employees. It
also creates psychological pressure on the employees to improve their performance as
they are aware that they are being observed personally by the manager. However, this
technique is not to be effectively used in all kinds of jobs as it is very time consuming.
• Budgetary Control
Budgetary control refers to how well managers utilize budgets to monitor and control
costs and operations in a given accounting period.

CLASSIFICATION OF BUDGETS
1–13

Types of Budget
• Revenue and Expense budget
The most common budgets spell out plans for revenues and operating expenses in rupee terms. The
most basic of revenue budget is the sales budget which is a formal and detailed expression of the
sales forecast. The revenue from sales of products or services furnishes the principal income to pay
operating expenses and yield profits.
• Time, Space, Material and Product budget
Many budgets are better expressed in quantities rather than in monetary terms. e.g.direct-labor-
hours, machine-hours, units of materials, square feet allocated, and units produced
• Capital Expenditure budget
Capital expenditure budgets outline specifically capital expenditures for plant,machinery,
equipment, inventories, and other items
• Cash Budget
The cash budget is simply a forecast of cash receipts and disbursements against which actual cash
"experience" is measured
• Variable Budget
The variable budget is based on an analysis of expense items to determine how individual costs
should vary with volume of output. Some costs do not vary with volume, particularly in so short a
period as 1 month, 6months, or a year. Among these are depreciation, property taxes and
insurance.
• Zero Based Budget
By starting the budget of each package from base zero, budgeters calculate costs afresh for each
budget period; thus they avoid the common tendency in budgeting of looking only at changes from
a previous period

MODERN TECHNIQUES
(a) Return on Investment.
(b) Ratio Analysis.
(c) Responsibility Accounting.
(d) Management Audit.
(e) PERT and CPM.
(f) Management Information System.

a) Return on Investment:
Return on investment is very useful technique for determining whether the capital invested in the
business has been effectively used or not for generating reasonable amount of return.
Return on Investment= (Net Income / Total Investment) X 100
It acts as an effective control device in measuring and comparing the performance of departments.
(b) Ratio Analysis:
Ratio Analysis is a technique of analyzing the financial statements of a business firm by computing
different ratios.
(i) Liquidity Ratios:
Liquidity ratios are calculated to know short term financial position of business and its ability to pay
short term liabilities. It includes current ratio and quick ratio.
a. Current Ratio = Current Assets/Current Liabilities. b. Quick Ratio = Cash + Bills Receivable
(ii) Solvency Ratios:
Solvency ratios are calculated to know long term solvency of the business and its ability to pay its long
term debts. It includes debt equity ratio, proprietary ratio, interest coverage ratio etc.
a. Debt Equity= Debt/Equity Share Holders Fund. b. Proprietary Ratio = Shareholders fund/Total Assets
(iii) Profitability Ratios:
Profitability ratios like gross profit ratio, net profit ratio, operating ratio, etc.
a. Gross Profit Ratio = Gross Profit/Net Sales × 100. b. Net Profit Ratio = Net Profit/Net Sales x 100
(iv) Turnover Ratios:
The various turnover ratios help in knowing whether the resources are effectively used for increasing
the efficiency of operations of business or not. Higher turnover indicates better utilization of
resources.
Inventory Turnover Ratio = Cost of goods sold/Average Stock

(c) Responsibility Accounting:
Under this system of accounting, various sections, departments or divisions of an
organisation are set up as ‘ Responsibility Centers’. Each centre has a head who is
responsible for attaining the target of his centre.
The various responsibility centres are as follows:
(i) Cost Centre:
Cost centre, also known as expense centre, refers to a department of an organisation whose
manager is held responsible for the cost incurred in the centre but not the revenues. For
example, Production department of an organisation may be classified as Cost Centre.
(ii) Revenue Centre:
A revenue centre refers to a department which is responsible for generating revenues. For
example, marketing department.
(iii) Profit Centre:
A profit centre refers to a department whose manager is responsible for both cost and
revenues. For example, Repair and Maintenance department.
(iv) Investment Centre:
An investment centre is responsible for profits as well as investments made in the form of
assets. For judging the performance of investment centre, return on investment (ROI) is
calculated and compared with similar data for previous years for one’s own centre as well
as other similar enterprises. It is also compared with current data of competing
enterprises.

(d)Management Audit:
Management Audit is a process of judging the overall performance of an organisation. It aims at
reviewing the efficiency and effectiveness of management and improving its future performance.
Following are the main advantages of management audit:
(i) It identifies the deficiencies in the performance of management functions.
(ii) It helps in improving coordination among the functions of various departments.
(iii) It ensures required modification in the existing managerial policies and techniques according to
environmental changes.
(iv) The continuous monitoring of the performance of management helps in improving control
system.
There is no proper technique of management audit and also it is not compulsory under any law.
(e) PERT and CPM:
PERT (Programme Evaluation and Review Technique) and CPM (Critical Path Method) are two
important techniques used in both planning and controlling. These techniques are used to
compute the total expected time needed to complete a project & it can identify the bottleneck
activities that have a critical effect on the project completion date. Such techniques are mainly
used in areas like construction projects, aircraft manufacture, ship building etc.
(f) Management Information System (MIS):
Management Information System (MIS) is a computer based information system which provides
accurate, timely and up-to-date information to the managers for taking various managerial
decisions. Thus, it is an important communication tool as well as an important control technique.
It provides timely information to the managers so that they can take appropriate corrective
measures in case of deviations from standards.

PERT/CPM
S.NO PERT CPM
1. The term PERT means Programme
evaluation and review technique
CPM means critical path
method
2 PERT is a probabilistic model CPM is a deterministic model
3 PERT model deals with uncertainty CPM model deals with
certainty
4 Time taken to complete the project
is highly uncertain
Time taken to complete the
project is certain
5 There are three types of time
estimates .They are pessimistic ,
optimistic and most likely time .
te=[ tp+4tm+to/6]
There is only one time assigned
.

Activity Description Immediate
predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C
1 3 4
2
A
B C
D
Example of PERT

COST CONTROL
Cost control is the measure taken by management to assure that the cost
objectives set down in the planning stage are attained and to assure that all
segments of the organization function in a manner consistent with its policies.
Steps involved in the cost control system:
• Establishing norms:
Establishing norms, targets or parameters which may serve as yardsticks to
achieve the ultimate objective. These standards, norms or targets may be set
on the basis of research, study or past actual.
• Appraisal:
The actual results are compared with the set norms to ascertain the degree
of utilization of men, machines and materials. The deviations are analyzed so
as to arrive at the causes which are controllable and uncontrollable.
• Corrective measures:
The variances are reviewed and remedial measures or revision of targets,
norms, standards etc., as required are taken.
• Advantages of cost control
• Better utilization of resources• To meet future competitive position.• Reason
able price for the customers •Improved methods of production
and use of latest manufacturing techniques.

PRODUCTIVITY
• Productivity refers to the ratio between the
output from production processes to its input.
Productivity may be conceived of as a
measure of the technical or engineering
efficiency of production. As such quantitative
measures of input, and sometimes output, are
emphasized

• a)Physical Productivity
This is a ratio of the amount of product to the resources consumed
(usually effort). Typically, effort is measured in terms of staff hours, days,
or months. The physical size also may be used to estimate software
performance factors (e.g., memory utilization as a function of lines of
code).
b) Functional Productivity
This is a ratio of the amount of the functionality delivered to the resources
consumed(usually effort). Functionality may be measured in terms of
requirements, features, or function points. Typically, effort is measured in
terms of staff hours, days, or months. Traditional measures of Function
Points work best with information processing systems.
• c)Economic Productivity
This is a ratio of the value of the product produced to the cost of
the resources used to produce it. Economic productivity helps to
evaluate the economic efficiency of an organization. Economic
productivity usually is not used to predict project cost because the
outcome can be affected by many factors outside the control of the
project, such as sales volume, inflation, interest rates, and
substitutions in resources or materials, as well as all the other
factors that affect physical and functional measures of productivity.
EP = Value/Cost

FACTORS AFFECTING PRODUCTIVITY
• National Productivity
Human Resources (basic education, training, good
working condition, pay scale, etc)
Technology and capital investment (R&D, attractive tax
reduction and ease of policy to attract investment)
Government regulation
• Manufacturing Industry
Product design
Equipment & machinery
Skill & effectiveness of workers
Energy
Type of production

Productivity Improvement Tools• JIT (Just-In-Time)
reduce lead times
minimise inventory
reduce the defect rate to zero and
Accomplish all of the above at minimum cost
• KANBAN
Kanban is a visual process and project management
tool first developed in Japan by Toyota.
Kanban is a way to visualize your work and limit the
amount of work in progress at any one time.
Kanban is a Japanese word that simply translates to
“signal.”
kanban card work system allows teams to
communicate and collaborate on what work needs to
be done and when.
Kanban has three core principles:
• Start with what you know - Don't try to reinvent the
wheel right away. Visualize what you have now.
• Pursue incremental, evolutionary change - Once you
can see the current state of your work, visualize how
to improve it.
• Respect the current process, roles, responsibilities &
titles - Don't make drastic, sweeping changes without
getting buy-in from the rest of your team. Kanban is a
collaborative process.
•5 S
The five S’s stand for five Japanese words;
Seiri (proper arrangement)
Seiton (orderliness)
seiso(cleanliness)
seiketsu(standardising)
Shitsuke (discipline)
KAIZEN
Define the area for improvement.
Analyse and select the
appropriate problem.
Identify its causes.
Plan counter measures.
Implement countermeasures.
Confirm the result.
Standardize.

PURCHASE CONTROL
• Purchase control is an element of material
control. Material procurement is known as the
purchase function. The functional responsibility
of purchasing is that of the purchase manager or
the purchaser. Purchasing is an important
function of materials management because in
purchase of materials, a substantial portion of the
company's finance is committed which affects
cash flow position of the company. Success of a
business is to a large extent influenced by the
efficiency of its purchase organization.

The advantages derived from a good and adequate system of the purchase control are
as follows
• a)Continuous availability of materials:
It ensures the continuous flow of materials. So production work may not be held up for
want of materials. A manufacturer can complete schedule of production in time.
• b) Purchasing of right quantity:
Purchase of right quantity of materials avoids locking up of working capital. It minimizes
risk of surplus and obsolete stores. It means there should not be possibility of
overstocking and understocking.
c) Purchasing of right quality:
Purchase of materials of proper quality and specification avoids waste of materials and
loss in production. Effective purchase control prevents wastes and losses of materials
right from the purchase till their consumptions. It enables the management to reduce
cost of production.
d) Economy in purchasing:
The purchasing of materials is a highly specialized function. By purchasing materials at
reasonable prices, the efficient purchaser is able to make a valuable contribution to the
success of a business.
• e) Works as information centre:
It serves as a function centre on the materials knowledge relating to prices, sources of
supply, specifications, mode of delivery, etc. By providing continuous information to the
management it is possible to prepare planning for production.
• f) Development of business relationship:
Purchasing of materials from the best market and from reliable suppliers develops
business relationships. The result is that there may be smooth supply of materials in
time and so it avoid disputes and financial losses

QUALITY CONTROL
Quality control refers to the technical process that gathers, examines,
analyze & report the progress of the project & conformance with the
performance requirements
• The steps involved in quality control process are
1) Determine what parameter is to be controlled.
2) Establish its criticality and whether you need to control before, during or
after results are produced.
3) Establish a specification for the parameter to be controlled which provides
limits of acceptability and units of measure.
4) Produce plans for control which specify the means by which the
characteristics will be achieved and variation detected and removed.
5) Organize resources to implement the plans for quality control.
6) Install a sensor at an appropriate point in the process to sense variance
from specification.
7) Collect and transmit data to a place for analysis.
8) Verify the results and diagnose the cause of variance.
9) Propose remedies and decide on the action needed to restore the status
quo.
10) Take the agreed action and check that the variance has been corrected

QUALITY CONTROL TOOLS
• Fish Bone Diagram – cause and effect diagram
• Pareto Chart - left y axis numbers, right cumulative percentage
X axis various reasons
• Histograms - Frequency of occurrence of samples
• Control Charts - deviation about mean
• Check Sheets - defects over a period (may be in a week)
• Scatter Plot - relationship between 2 variables

SCATTER PLOT
Positive Correlation
Negative Correlation
No Correlation

PARETO CHART
#
Problem (Step 1)
Complaints
Cause (Step
2)
No. of
Complaint
s
(Step 3)
1
Phones aren't answered quickly
enough.
Too few
service center
staff. 15
2
Staff seem distracted and under
pressure.
Too few
service center
staff. 6
3
Engineers don't appear to be well
organized. They need second visits to
bring extra parts.
Poor
organization
and
preparation. 4
4
Any time Engineers may arrive.
Customers may have to be in all day for
an engineer to visit.
Poor
organization
and
preparation.
2
5
Service center staff don't always seem
to know what they're doing.
Lack of
training. 30
6
When engineers visit, the customer
finds that the problem could have been
solved over the phone.
Lack of
training. 21
Jack then groups problems together
(steps 4 and 5).
He scores each group by the number
of complaints, and orders the list as
follows:
•Lack of training (items 5 and 6) – 51
complaints.
•Too few service center staff (items 1
and 2) – 21 complaints.
•Poor organization and
preparation (items 3 and 4) – 6
complaints.

HISTOGRAMS
The histogram below shows the
heights (in cm) distribution of 30
people.
a) How many people have heights
between 159.5 and 169.5 cm?
b) How many people have heights
less than 159.5 cm?
c) How many people have heights
more than 169.5 cm?
d) What percentage of people have
heights between 149.5 and 179.5
cm?

INFORMATION TECHNOLOGY IN CONTROLLING
• Management Information System (MIS) provides the
communication link that makes controlling possible.
• MIS is defined as a formal system of gathering, integrating,
comparing, analyzing and dispersing information internally
and externally to the enterprise in a timely, effectively and
efficient manner.
• Electronic equipment permits fast and economical processing
of large data without confusions and make them readily
available for decision making.
• The applications of computer are found in material
requirement planning, computer aided manufacturing,
project costing, inventory control and purchasing.

Role of Management Information System
• Helps in Decision making: - Management Information System (MIS) plays a
significant Role in Decision making Process of any Organization. Because in Any
organization decision is made on the basis of relevant Information and relevant
information can only be Retrieving from the MIS.
• Helps in Coordination among the Department: - Management information
System is also helping in establishing a sound Relationship among the people
between department to department through proper exchanging of
Information’s.
• Helps in Finding out Problems: - We know that MIS provides relevant
information about the every aspect of activities. Hence, If any mistake is made
by the management then Management Information Systems (MIS) helps in
Finding out the Solution of that Problem.
• Helps in Comparison of Business Performance: - MIS stores all Past Data and
information in its Database. That is why management information system is
very useful to compare Business organization Performance. With the help of
Management information system (MIS) Organization can analyze their
Performance whatever they did last year or Previous Years and whatever
performance in this year and also measures organization Development and
Growth.

CAUSES OF NEGATIVE DEVIATIONS IN THE
PROCESS OF CONTROLLING
• Uncertainty
• Lack of knowledge, experience, or judgment
Direct control: the procedure that traces the causes of
an unsatisfactory result back to the persons responsible
for it and get them to correct their practices.
Preventive control: the procedure that traces the
causes of an unsatisfactory result back to managers’
management skill and knowledge.
TWO GENERAL APPROACHES TO NEGATIVE
DEVIATIONS

PREVENTIVE CONTROL
• The basic philosophy of preventive control
system is that the best way to correct
deviations is not to let these take place at all.
• The basic tool of the system is to develop
better managers, who can manage problems
from a wider and intelligent perspective.
Highly qualified managers will make fewer
mistakes, thus reducing the need for direct
control

ASSUMTIONS UNDER DIRECT AND PREVENTIVE
CONTROL
Direct
• All performance can be measured
• Personal responsibility exists
• Time expenditure is warranted
• Mistakes can be discovered in time
• Person responsible will take corrective steps
Preventive
• Qualified managers make a minimum of errors
• The management fundamentals can be used to
measure performance
• Application of management fundamentals can be
evaluated

42
Advantages of Preventive Control
• Greater accuracy is achieved in assigning personal
responsibility.
• Preventive control encourages self-control and make
corrective action more effective.
• Preventive control may lighten the managerial
burden caused by direct controls.
• Employees may be motivated to improve themselves
continuously.

POPULAR TECHNIQUES OF DIRECT CONTROL
• Budget summaries and report
Budget summary is a resume of all individual
budgets. It reflects company in terms of profit,
cost, sales volume, etc.
• Profit and loss control
Income expenditure statement, at times may
be for each and every division
• Return on investment (ROI)
Ratio of earning to investment of capital of a
company

Why do People do Reports for Controlling?
• The controls team is established to manipulate the
delivery of the project’s products outputs.
• Controlling reports allow the control team to compare and
contrast information, analyze and interpret data, make
inferences and conclusions, and make rational decisions.
• Control teams also make reports to present the team’s
achievements, plans, and problems on a regular basis.
Achievements can be a source of inspiration and
motivation to the team members who feel frustration
when they do not meet their goals. The team’s
accomplishments can also boost the control team’s
momentum. Problems are also presented in the
controlling report for the team to know the existing and
potential threats the group is facing and is going to face.

How do Teams usually do Reports for Controlling?
• Reports for controlling provide vital data on the activities,
performance, status, and progress of the team and the project.
• The controlling report should be factual, complete, accurate, and
updated. This is to ensure that the team and its members always
get the newest information within a specific time frame. Also,
reports allow control teams to formulate plans, establish
strategies, implement actions, and evaluate outcomes.
• The report can indicate essential information on the team’s issues,
plans, and achievements. With this information, the team will be
able to discuss its future goals while solving and preventing actual
and potential issues. Moreover, the team members will be able to
inspire and motivate their teammates with the team’s
achievements that are included in the controlling report.
• Quantitative data on the controlling report may also be presented
using tables, graphs, charts, and diagrams. This is to facilitate
faster appreciation and comprehension of data, unlike a plain
narrative output. These tools in presenting data can be effective in
showing the link between the past, present and the future report.

Typical questions/metrics/topics that are usually covered
in a Report for Controlling
• What are the available resources to the team?
• What are the actual threats that you see? How are you going to solve
them?
• What are the potential problems that you foresee? How are you going to
prevent them?
• Do you have other concerns or issues?
• What are your achievements for today?
• What short and long term goals do you have in order to meet the
company’s objectives?
• What strategies and actions will you implement to meet the plans?
• Were the strategies and actions previously implemented successful?
• What are your strong and weak points when it comes to managing the
team?
• Do you see any open opportunities for improving your management skills?
• What are the feedbacks of your subordinates on how you handle them?
• What is the trend in your performance? What is its implication to your
future performance?

Advantages & Best Practices of doing Reporting
for Controlling
• Communication is the primary benefit of a control report. It
connects the members of the team with the reports and updates
on their status, progress, and performance.
• The control report also connects teams, which has members from
various locales and time zones. Aside from updates, the team
members can also communicate urgent information to the team,
along with new and changed information.
• Control reports help the team in its business plan. The reports have
assessment clues, which help the team formulate concrete plans,
develop efficient strategies, implement effective actions, and
evaluate outcomes
• The team’s momentum is set to be boosted by the achievements
listed in the control report.
• Problem identification is another advantage of reports for
controlling. Team members will be able to spot existing and
potential threats to the team, allowing them to discuss the possible
ways to solve actual problems and prevent potential problems.

Disadvantages & Pitfalls of doing Reporting
for Controlling
• Control reports has to indicate essential pieces of information,
such as problems, achievements, and plans. Also, information
like strategies, actions, weakness, strengths, opportunities and
threats can be also included in the report. This can be time-
consuming as team members have their regular tasks and
duties.
• Online control reports are easy sent and distributed to the
members and leaders of the team. However, these online
reports have one issue – reliance to a stable internet
connection.
• Some teams only focus on the present or current updates on
the project, which means that the past and future aspects of
the business can be neglected. This may compromise the
team’s performance as the present performance of the team is
linked and comparable to its past and future performance.
Failure to include past data may lose the team’s baseline data
while not including the future aspect may lose the team’s
preparedness to threats.Compiled by Dr.M.Balasubramanian

STEPS IN OPERATIONS MANAGEMENT
• Planning to plan
• Performing a values scan
• Mission formulation
• Strategic business Modeling
• Performance audit and gap analysis
• Integrating action plans
• Contingency plans
• Strategy implementation

END….

Controlling

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