controlling - management
- 1. CONTROLLING
- 2. CONTROLLING Control refers to the task of ensuring that activities are producing the desired results. Controlling is determining what is being accomplished – that is evaluating the performance and if necessary applying corrective measures so that the performance takes place according to plans.
- 3. CONTROLLING AND OTHER FUNCTIONS 1. Planning as the basis 2. Action as the Essence 3. Delegation as the Key – responsible and having authority to perform controlling functions 4. Information as the Guide
- 4. IMPORTANCE OF CONTROL 1. Reduces uncertainties 2. Eliminates wastages and makes management accountable 3. Prevents misuse of delegated authority 4. Ensure better coordination among the functions of management 5. Making planning effective 6. Organisational Effectiveness
- 5. REQUISITIES OF GOOD CONTROL SYSTEM 1. Reflecting Organisational Needs 2. Forward Looking 3. Promptness in Reporting Deviations 4. Pointing out Exceptions at critical points 5. Objective – definite and clear and positive 6. Flexible 7. Economical 8. Simple 9. Motivating 10. Reflecting Organisational Pattern
- 6. PROCESS OF CONTROL 1. Establishment of standards 2. Measurement of performance 3. Comparing performance with the standards 4. Taking corrective action
- 7. CONTROL TECHNIQUES -OPERATIONAL CONTROL TECHNIQUES -OVEALL ORGANISATIONAL CONTROL TECHNIQUES
- 8. OPERATIONAL CONTROL OC is exercised at the level of various operating units by the concerned operating managers
- 9. OPERATIONAL CONTROL 1. Financial Control 2. Operating Control 3. Inventory Control
- 10. OVERALL CONTROL TECHNIQUES 1. Ratio Analysis 2. Management Audit 3. Human Resource Accounting
- 11. OPERATIONAL CONTROL - FINANCIAL CONTROL Financial control is relevant for those aspects of business operations whose outcomes are expressed in monetary terms.
- 12. OPERATIONAL CONTROL - FINANCIAL CONTROL 1. BUDGETARY CONTROL It is the process of comparing the actual results with the corresponding budget data in order to approve accomplishments or to remedy differences by either adjusting the budget estimates or correcting the cause of the difference
- 13. OPERATIONAL CONTROL - FINANCIAL CONTROL 2. CONTROL THROUGH COSTING Involves the control over costs in the light of certain pre-determined costs usually known as standard costs Standard costs are pre-determined operation costs computed to reflect quantities, prices and level of operations
- 14. OPERATIONAL CONTROL - FINANCIAL CONTROL 3. BREAK-EVEN ANALYSIS Relationships of fixed costs, variable cost, price level of output and sales mix to the profitability of the organisation
- 15. OPERATIONAL CONTROL - FINANCIAL CONTROL 4. RESPONSIBILITY ACCOUNTING -Focuses attention on management by objectives -Each person is responsible for his area of operation and for effective control he must know what is costs should be and what his costs were.
- 16. OPERATIONAL CONTROL - FINANCIAL CONTROL 5. INTERNAL AUDIT Ensuring that accounts properly reflects the facts
- 17. OPERATIONAL CONTROL - OPERATING CONTROL 1. QUALITY CONTROL 2. QUALITY CONTROL THROUGH QUALITY CIRCLE
- 18. OPERATIONAL CONTROL - INVENTORY CONTROL 1. ABC CONTROL A – high value items - quantity less B – Average value and quantity C – low value and quantity in large 2. ECONOMIC ORDER QUANITITY 3. PERT/CPM
- 19. OVERALL CONTROL TECHNIQUES 1. FINANCIAL RATIO ANALYSIS -Liquidity Ratios -Activity Ratios -Leverage Ratios -Profitability Ratios 2. RETURN ON INVESTMENT 3. MANAGEMENT AUDIT 4. HUMAN RESOURCE ACCOUNTING
- 20. ROLE OF INFORMATION TECHNOLOGY IN CONTROL MIS designed to supply information required for effective management of an organisation
- 21. READING Principles of Management – Harold Koontz, A Ramachandra Aryasri Principles of Management – L.M.Prassad Principles & Practice of Management – T.N Chabbra