Concept and process

Establishing performance standards

Measuring performance
Corrective Action
Types of Control
Human Aspects
Principles
Techniques
Concept of Control
Control is one of the basic managerial function.
It is intimately related with other management
functions.
It ensures that plans are being implemented and goals
are being achieved effectively and efficiently.
It seem to be the last function, but it is really not so.
Process of Control
Establishment of performance standards
Measurement of performance against standards
Identification of deviations and analysis of their causes
Corrective action
Establishment of Standards
Establishment of performance standards is a
prerequisite for the operation of the control system.
Every organization uses numerous kinds of standards for
measuring performance. These standards fall into two
main categories :
(i) Tangible
(ii) Intangible
Tangible/Objective Standards

Cost standards
Revenue standards
Capital standards
Programme standards
Intangible/Subjective Standards

These are numerous

These can not be measured by objective or tangible
standards
Measuring Performance
Sampling Technique
Personal Observation
Predictive measures
Reports and summaries
Prior Approval
Corrective Action
This step may involve changing certain conditions,
revision of objectives, strategies, policies, procedures,
methods, etc.
Types of Control
Operational
Managerial
Financial
Predictive
Concurrent
Historical
Principles of Control
Based on objectives and plans
Understandable
Flexible
Economical
Established at strategic points
Timely
Objective
Adjusted for individual differences
Related to Position
Related to organizational design
Aimed at corrective action
Reviewed periodically
Techniques

Control techniques may be broadly categorized as:

Those aimed at measuring the overall performance
Those aimed at measuring certain specific aspects of
performance
Techniques of Partial Control
BEP Analysis
Budgets
Cash Flow Statements
PERT
Statistical Data
Logistics Control Systems
Operational Control
Observation
Techniques of Control of Overall
Performance
Profit and Loss Control
Control through ROI
Budget Summaries
Financial Ratios
Operational Audits
Management Self Audit
MIS
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