Controlling

PRINCIPLES & PRACTICES OF

MANAGEMENT
Dr. Rahul Pratap Singh Kaurav
Prestige Institute of Management, Gwalior
Total
Quality
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.

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 Feedforward controls
Employed before a work activity begins.
Ensures that:
Objectives are clear.
Proper directions are established.
Right resources are available.
Focuses on quality of resources. 4
 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.

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 Feedback controls

Take place after work is completed.

Focus on quality of end results.

Provide useful information for improving future

operations.
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Internal and external control
Internal control
Allows motivated individuals and groups to
exercise self-discipline in fulfilling job
expectations.

External control
Occurs through personal supervision and
the use of formal administrative systems. 8
 Bureaucratic control
influences behavior through authority, policies, procedures, job
descriptions, budgets, and day-to-day supervision

Clan control
influences behavior through norms and expectations set by the
organizational culture.

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 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.
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Four steps in the
control process.

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 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.
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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.

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 Step 3 comparing results with objectives and standards
Need for action reflects the difference between desired
performance and actual performance
Comparison methods:
Historical comparison
Relative comparison
Engineering comparison

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 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
Opportunity situation 15
 Employee discipline systems

Discipline is the act of influencing behavior through

reprimand.

Discipline that is applied fairly, consistently, and

systematically provides useful control.

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 Employee discipline systems
Progressive discipline ties reprimands to the severity and
frequency of the employees infractions.
Progressive discipline seeks to achieve compliance with the
least extreme reprimand possible.

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 To be effective, reprimands should
Be immediate.
Be directed toward actions, not personality.
Be consistently applied.
Be informative.
Occur in a supportive setting.
Support realistic rules.
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Project Management
Overall planning, supervision, and control of
projects.
Projects unique one-time events that occur
within a defined time period
Gantt chart graphic display of scheduled tasks
required to complete a project
CPM/PERT combination of the critical path
method and program evaluation and review
technique
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Economic Value Added
a performance measure of economic value created
in respect to profits being higher than the cost of
capital

Market Value Added

a performance measure of stock market value
relative to the cost of capital
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Basic Financial Ratios
Liquidity
The ability to generate cash to pay bills.
Leverage
The ability to earn more in returns than the cost
of debt.
Asset management
The ability to use resources efficiently and
operate at minimum cost.
Profitability
The ability to earn revenues greater than costs.
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Balanced Scorecard
Factors used to develop scorecard goals and
measures:
Financial performance
Customer Satisfaction
Internal process improvement
Innovation and learning
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Gannt
chart

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CPM/PERT

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QUALITY CONCEPT
 The Quality Concept
The totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs.
Factors effecting quality
1. Man, Materials and Machines
2. Manufacturing Conditions
3. Market research in demand of purchases
4. Money in capability to invest
5. Management policy or quality level
6. Product design or Production method
7. Packaging and transportation
8. After Sales Service
 Developing a quality control system
A Quality Control System (QCS) supports effective quality control requirements, quality
customer services and the efficiency of internal management systems.
A QCS is an important tool for integrating best practices for profitability and compliance
with external QA requirements.
The essential requirements for success are:
1. Management commitment
2. Identification of practices that are essential to both quality and efficiency
3. Quantified goals and processes for measurement
4. Assigned QCS responsibilities
5. Employee training and communication
6. A regular process for evaluating how QCS-related practices are being implemented
7. Documentation of need for improvement and Documentation of improvements.
 Developing a quality control system
Five Steps for QCS Development
Step 1: Identify the quality mission and objectives of your organization.
These may include, for example, corporate quality goals, customer
satisfaction objectives, and compliance with external quality
requirements.
Step 2: Assign responsibilities for development of a QCS plan.
Step 3: Develop information that will provide the foundation for the QCS
plan:
1. The most important quality-related activities
2. Goals for managing and improving quality-related activities
 Developing a quality control system
3. Existing or needed processes for measuring and improving quality-related
activities:
1. Fact-based measurement
2. Needs for corrective action
3. Resolution of corrective action requirements
4. Management and staff implementation responsibilities, and
5. Processes for feedback to improve processes based on experience.
Step 4: Based on assessment of material developed in Step 3, create a written
plan for a process-based and consistent quality improvement system.
Ensure that the plan assigns responsibilities for implementation. Create a plan that
is easy for managers and employees to understand; that provides clear measurable
objectives; that clearly identifies responsibilities, and that describes processes for
meeting objectives.
Step 5: Consistently implement the QCS plan. The plan should establish a system
that now requires only periodic at least annual review and modification.
Total Quality Control From Griffin

Definition: A strategic commitment by top management to change its

whole approach to business in order to make quality a guiding factor in
everything it does
Major ingredients of TQM:
1. Strategic commitment
2. Employee Involvement
3. Technology
4. Materials
5. Methods
Total Quality Control

TQM tools and techniques

1. Value added analysis: Evaluation of all work activities, materials
flow and paper work
2. Benchmarking: Competitor analysis
3. Outsourcing: Subcontracting services and operations
4. Reducing cycle time: Input process and output
5. ISO 9000:2000 and ISO 14000: Certification
6. Statistical Quality Control: Acceptance sampling and in process
sampling
 Types of Control
Controls used to standardize performance in order to increase efficiency, lower cost
and optimize performance: standard of performance set by using time and motion
study
Controls devised to safeguard company assets: reduces losses due to waste and
misuse of raw material
Controls used to standardize quality: setting quality standards
Controls used to set limits for the delegated authority: centralization and
decentralization
Controls designed to measure workers performance: setting performance standard
Controls designed to measure and enhance workers attitude: Friendly supervision and
participative leadership
Controls used to monitor total performance and operations: overall control of activities
Controls designed to synchronize all operational activities of the enterprise: master
plans, set procedures and manuals
THANK YOU
Dr. Rahul Pratap Singh Kaurav
+91.9826569573
rsinghkaurav@yahoo.co.in