Unit 6 controlling function, plus rest of the course

Controlling
function of the Management
By – Hijratullah Tahir
Introduction to Management

Control Function with Detail
• To Monitor the Organizational activities to facilitate
Goals achievement.
• Organizations can’t achieve Goals without Control
Function.
• Steps of Control Function:
i. Establishing Control Standard
ii. Measuring the Performance
iii. Comparing Performance with the Standards
iv. Take Corrective Action

1. Establishing Control Standard:
• Control standard is a target against which
subsequent performance will be compared.
2. Measuring the Performance:
• The Second step is measuring the performance.
• For example: Daily, weekly and monthly sale
figures measures sales performance
3. Comparing Performance with the Standards:
• This step compares actual activities to
performance standards.
Controlling function steps

4. Taking Corrective action
• When performance deviates from standards so
Managers must determine that what changes are
imported and have to be apply.
Controlling function steps …

Purposes of Control Function:
• Control Function helps the Organization in the
following (4) different ways…
1. Adopting with Environmental Changes
2. Cooping with Organizational Complexity
3. Limiting the Accumulation
4. Minimizing the Cost

1. Adopting with Environmental Changes
• With the help of Controlling function;
 Managers can easily identify the Environmental
changes
 They will develop proper controlling system
 Manager can; Check , Identify and respond to
changes
Purposes of Control Function …

2. Cooping with Organizational Complexity:
• Proper and sophisticated Controlling system can
help managers to;
• Develop sufficient control system for the
resources
• Assist to control complicated organization

3. Limiting the Accumulation:
• Controlling functions help managers;
• To Identify the small mistakes and errors before
going to worse condition
4. Minimizing the Cost:
• Reduce the organizational cost through proper
controlling system

Areas of Control:
• Focus on the following areas;
i. Physical
ii. Human
iii. Informational
iv. Financial

1. Physical Resources or Areas:
• Control over;
• Stocking, Quality Control, Equipment Control like;
Supplies management or Error in machinery
2. Human Resource or Areas:
• Control over;
• Selection and placement, training and
development and performance appraisal and
compensation.
Areas of Control …

3. Informational Resources or Areas:
• Control over Information;
• Organization internal information and External
market environment
4. Financial Resource or Areas:
• Control over Financial resources like;
• Organization Debts required or Debts are pay
back period
Areas of Control …

Features of the Control Function:
1. Integration with Planning
• Controlling must be linked with planning function
• More clear the linkage, the controlling system
will be more effective
• During the planning;
• Set the goal
• Set controlling process
• Align controlling with planning or goal

2. Flexibility:
• Controlling system must be flexible to adopt change
• Like; the company inventory control system have 75
raw materials for current product line
• In case, the increase in product line occurred. So,
the company Inventory control system must be
flexible to adopt this change
Features of the Control Function …

3. Accuracy:
• Information needed or required for the
controlling must be accurate.
4. Time line:
• For controlling system the time should be assign
or given to any phase
Features of the Control Function …

Levels of Control:
1. Operational Level
• Operational level Focuses on the process of the
Organization and uses to transform the sources
into product and services.
2. Structural Level
• Structural control is concern with how the
elements of an Organization are serving the
intended purposes or desired objectives.

Staffing
function of the Management
Introduction to Management
By – Hijratullah Tahir

Staffing Function with Detail
• Right person for right job at a right time
• Nature of Staffing Function:
i. Staffing function is non-stop activity because it
continuous through the life or Organization.
ii. Staffing Function helps in placing Right person
for the Right place.

Recruitment and Selection
1. Recruitment
• Refers to the process of attracting qualified
people for a job at an Organization
2. Selection
• Involves the serious of steps by which the most
suitable Candidates are screened for the job.

Recruitment sources:
i. Internal Source
ii. External Source

1. Internal Source
• Considering the current Employees
• Promotion within the organization
• To increase moral and to motivate the staff
Recruitment sources …

Advantages of Internal Sources:
1. The person who has given higher position in the
Organization are tested and trained.
2. The promoted person has or contains a lot of
knowledge about the Organization.
3. The promoted person requires minimum training,
which minimizes the cost of firm.
4. Internal Source causes the efficient utilization of
employees’ skill.

Disadvantages of Internal Sources:
1. In internal source Rejection of an employee can
affect his/her moral.
2. Internal source causes disordering the normal
function of the Organization.
3. Internal source causes Ripple effects of the internal
Recruitment.

2. External Source
• Hired employees from outside of the
organization
• Through Advertisement
• Reasons for External Hiring;
a. Bringing innovative ideas and suggestion to the
Organization.
b. New technology requires new skills.

Stages in Selection Process:
1. Application Blank
2. Test
3. Interview
4. Reference Checking
5. Final Selection
6. Medical Examination
7. Induction

1. Application Form
• First step in the selection process
• Candidates asked to fill out an application form
• Getting information about;
• Work history, Educational background and other job
related data
• Used to evaluate Candidates according to
requirements
Stages in Selection Process …

2. Test:
• To understand the applicants level of ;
• Abilities, Skills and knowledge
• Relevant for particular jobs
3. Interview:
• Very essential step in Selection process
• Two way communication process
• Interviewers ask and obtain information about
candidates
• In order, to identify best applicant

4. Reference Checking
• Step after interview
• This will be from successful candidate
• Check with previous employers
• Assist Employer to know the past performance of
the Candidates

5. Final Selection:
• Final option whether to accept or reject the
Candidate.
Decision Making:
• Process of choosing the best way among the
different alternatives
Stages in Selection Process…

Types of Decision Making:
1. Centralize Decision making:
• Authority of Decision making is with the top Level
of Management
• Only top Managers can make decisions.
2. Decentralize Decision making:
• All the Management Levels are involved in
decision-making.

1. Certainty
• Decision maker must know the outcome of
decision.
• Like; installing new machinery, promoting of an
employee to higher post.
2. Uncertainty
• Decision maker cannot estimate the outcome of
the decision
• Because they have no way of measuring the
probability of those alternatives.
Decision making Conditions:

3. Risk:
• When the coming situations are not known in
advance.
• In this case manager follow;
i. Depending on past experience
ii. If the Probability estimate is assign on the Basis of
Get fell
• Get fell; using perception of your own mind for
taking decision
Decision making Conditions …

Types of Decision Making
1. Routine and Non Routine Decisions
2. Organizational and personal decision
3. Programmed and non programmed decision
4. Strategic, operation and administration decision

1. Routine and Non Routine Decisions:
A. Routine
• Follow the established rules, structured and
standardized policies
B. Non Routine
• Not follow the rules, structured and policies
• Problems require individual analysis and
solutions
Types of Decision Making …

2. Organizational Decisions and Personal Decisions
A. Organizational Decision
• The members of the Organization make
organizational decisions in their official
Organizational Rules
• Like; Decisions for promoting employees.
B. Decisions for promoting employees.
• Personal decision are dealing with the personal life
of the members of Organization.

3. Programmed and Non Programmed Decisions
A. Programmed Decisions
• Same as Routine decisions
• Procedure or structure have role in the decision
B. Non- Programmed Decisions
• Different from Non – Routine Decisions
• Because here polices play important role.
• Like; selection and training of sales persons

4. Strategic decisions, Operating decisions and
Administrative decisions:
A. Strategic Decisions
• Relationship of an organization with its external
environment. Like, Opportunities and Threats.
B. Operating decisions
• Work for the efficiency of internal situation.
• Like: (Production, Marketing, Financing and etc.)
C. Administrative decisions
• Deal with the information flow, organization
structure and facilities.

Steps in Decision making Processes:
i. Definition of Problem
ii. Analyzing of the Problem
iii. Developing alternative
iv. Evaluate the alternative
v. Selecting the best solution
vi. Implementing the solution
vii. Monitor your solution

1. Definition of Problem:
• First step toward decision making
• No need of making decision without any problem
2. Analyzing of the Problem:
• Once the problem is defined the next step is to
analyze the problem.
• We can analyze the problem by gathering the all
facts and figures
• Required for solving the problem.
Steps in Decision making Processes …

3. Developing alternative:
• Here the decision maker should consider as
many alternatives as possible.
4. Evaluate the alternative:
• Have to analyze each alternative.
• Here the decision maker finds out advantages
and disadvantages of each option.

5. Selecting the best solution:
• After analyzing the alternatives
• Select the best possible solution
6. Implementing the solution:
• After choosing the best option
• Implementing the solution

7. Monitor your solution:
• Decision maker must keep close eye on the
progress of the solution taken and
• Also to monitor that whether it leads towards
expected result or not.

Decision making techniques
i. Marginal Analysis
ii. Financial Analysis
iii. Break-even Analysis
iv. Ratio Analysis
v. Operation research Techniques

1. Marginal Analysis:
• Process of identifying the benefits and Cost of
different alternatives
• By examining the incremental effects on total
Revenue and total Cost by changing on unit of
input.
2. Financial Analysis:
• Decision-making, which is used for profitability of
the investment
• Like, Calculating Payback Period
• Means that which project will be completed soon.
Decision making techniques …

3. Break-even Analysis:
• Mathematical relationship between Cost and
Sale Revenue
• It determines the numbers of products that must
be sold at given price to cover the cost.
• Break-even analysis means to see that whether
our Revenue completes the expenses or not.

4. Ratio Analysis:
• Important technique of financial analysis
• Quantities are converted into Ratio
• For meaning full comparison with the past ratio
of the firm and ratio of other firms.
• It determines the strength or weakness of the
firm.
• Like, Current Ratio = Currents Assets / Current
Liability

5. Operation research Techniques:
• Involves application of Quantitative methods for
decision making
• Also called Applied Decision Theory
• Decision makers seeks to achieve rationality in
dealing with problem

Unit 6 controlling function, plus rest of the course

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