CONTROL- Meaning & Introduction

An organization without effective control procedures is not likely to achieve its goals. Control keeps the organization moving in the proper direction. Lloyd Baird says, Managers make things happen, and good managers make sure that the right things happen in the right way and at the right time. It is a device for detecting & correcting significant variations in the results obtained from planned activities. A combination of well-planned objectives, strong

CONTROL- Meaning & Introduction

organization, capable direction, and motivation have little probability for success unless there exists an adequate system of control. The word control suggests the operations of checking, testing, regulation, verification, correction and adjustment.

DEFINITIONS
According to George Terry, Controlling is determining what is being accomplished, that is evaluating the performance &, if necessary, applying corrective measures so that the performance takes place according to plans. In the words of Philip Kotler, Control is the process of taking steps to bring actual results and desired results closer together.

NATURE/CHARACTERISTICS OF CONTROL
Managerial Function Circular Process Forward Looking Necessary at all Levels of Management Wide Scope Not an Interference Continuous Process Action oriented Dynamic Process

OBJECTIVES OF CONTROL
It makes certain that goals & plans are being followed It maintains effective coordination between objectives, standards & results It identifies deviations & their reasons It serves as yardstick for evaluating performance It provides a base for future planning and future actions It maintains discipline & cooperation among the employees

OBJECTIVES OF CONTROL
It prevents negligence of duty, corruption, wastage, etc. of work It sets the pace of progress, governs operations & produces the desired results.

SIGNIFICANCE/IMPORTANCE OF CONTROL
Coordination Corrective Action Decision making Better Planning Facilitate Delegation Effective Supervision Efficient Use of Resources Prevents Crisis & Mistakes Improvement in Quality and Output

SIGNIFICANCE/IMPORTANCE OF CONTROL
Facilitates Teamwork & Cooperation Enhances Employees Morale

STEPS/PROCESS OF CONTROL
1.
ESTABLISH STANDARD S

2. 4.
MEASURE PERFORMN CE COMPARE PERFORMA NCE & STANDARDS

3.
EVALUATE PERFORMA NCE & TAKE ACTION

MAINTAIN THE STATUS QUO

CORRECT THE DEVIATION

CHANGE STANDARD S

TECHNIQUES/METHODS OF CONTROL
1. General Techniques Personal Observation Setting Examples Records & Reports Policies & Procedures Disciplinary Action Rewards Budgets Internal Auditing Statistical Data

TECHNIQUES/METHODS OF CONTROL
Break-even Analysis Self-Control 2. Special Techniques of Control Human Asset Accounting Cash Flow Analysis Management Information System 3. Advanced Control Techniques Management Audit Programme Evaluation & Review Techniques (PERT)

TECHNIQUES/METHODS OF CONTROL
Critical Path Method Operations Research Linear Programming Simulation Games Theory

REQUIREMENTS FOR EFFECTIVE CONTROL

Specially Designed Understandable Economical Flexible Accurate Timely Simple & Realistic Impartial & Coordinated Focus on Results

REQUIREMENTS FOR EFFECTIVE CONTROL

Emphasis on Objectives Forward Looking Responsibility for Control Corrective Action Seek Employee Commitment Periodic Review

METHODS OF CONTROL OF OVERALL PERFORMANCE

1. 2. 3. 4. 5. 6. 7. Budget Summaries & Reports Profit & Loss Controls Control through Return on Investment TQM Techniques New Financial Control Systems Open Book Management Balanced Scorecard