Professional Documents
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MANAGEMENT
CHAPTER 5 :
MANAGERIAL
CONTROL
INTRODUCTION TO MANAGERIAL
CONTROL
DEFINITION OF MENAGERIAL
CONTROL
CONCEPTS IN CONTROL
employees to
Behavior control
Self-evaluation by managers
Financial statement
RELATIONSHIP BETWEEN
MANAGERIAL CONTROL AND
PLANNING
IMPORTANCE OF
CONTROL
i.
i.
c) Mistakes
i.
i.
i.
i.
i.
i.
EFFECTIVE CONTROL
PRINCIPLES
a) Flexibility
b) Accuracy of information
c) Timeliness
e) Acceptance by employees
CHARACTERISTIC OF
EFFECTIVE CONTROL
a) Accurate information.
b) Comprehensive objectives
c) Timeliness
d) Easy to operate
e) Economical
f) Flexible
g) Acceptance by employees
PROBLEMS IN FORMING
RIGID AND FLEXIBLE
CONTROL SYSTEMS
RIGID CONTROL
FLEXIBLE CONTROL
SYSTEM
SYSTEM
heartedly
Low productivity
Low productivity
Relationship between
Wastage of resources
TYPES OF CONTROL
b)
Concurrent control
c)
Filtering control
d)
Feedback control
CONCURRENT CONTROL
Even though concurrent control can slow down and activity to the minimum
level, however this type of control can avoid bigger problems from occurring
FILTERING OR YES/NO
CONTROL
FEEDBACK CONTROL
This control is also used as the basis for giving rewards or motivating
employees
CONTROL TECHNIQUES
FINANCIAL CONTROL
TECHNIQUES
Financial statements
The different between total sales (total revenue) and total costs
(total expenditure) is the profit or loss earned by the
organization in a certain time period
Balance sheet
AUDIT
BUDGET
Financial budgets comprise balance sheet budget, cash budget, and capital
expenditure budget. These budgets show the financial resources required to
finance the expected operations and other assets required by the
organization
Besides preparing budgets for the purpose of planning, budgets are also
used as a control tool through the preparation of the budget performance
report. This report compares revenues with the actual cost of activities and
the budgeted cost for the operational level that was achieved
Statistical report not only cover computer output, but also include
graphs, charts, and figures in any form that can be used by managers
to evaluate performance
As traditional non financial control techniques have their own strengths and
weaknesses, managers should practise all the techniques so that control can be
conducted comprehensively
Henry Gantt (1861-1919) created the Gantt Chart in order to control the
progress of projects easily. Gannts work is taken from the Taylor incentive
system, a result of his cooperation with Taylor in several projects
The schedule of the whole project is created by setting the starting time and the
completed time for each activity in the project. The activities must be completed
according to the right sequence until the project is over
The managers will be test and compare the actual implementation of activities. If
the project is completed earlier that scheduled, certain resource such as human
and machinery can be loaned to other projects facing a shortage of resources. If
there is a delay in schedule, managers can take prompt action to perform the
delayed activities and ensure that the project is completed within the set time
frame
Form a project team comprising members who have wide knowledge of the
project and will be involved in the whole project. The team can consist of 4
to 6 members
Prepare a list that contains all the activities that will be performance in the
project. For the purpose, the brainstorming technique can be used
Build a chart by listing all the activities that must be performed to complete
the whole project on the first column on the left side of the chart. The
activities are arranged according to its sequence. The first activity to be
performed to start the project will place on the top of the first column. The
last activity that needs to be completed at the final stage of the project will
be place last on the first column
Determine the time unit ( days, weeks, months, and years) that will
be used and build a grid using the selected time unit
MILESTONES BUDGET
PERT was used for the first time in 1958 by the United States of
Americas navy to plan and control of building the Polaris missile
Among all the activities, what are the most critical activities in the project?
Among all the activities, which are the non critical activities in the project?
Will the project be completed on time according to the schedule, earlier or later?
Among all the activities, which activity must be given more attention in order to
complete the project earlier but minimum additional costs?
THANK YOU