CONTROLLING

The way an organization

works towards excellence and
perfection……
 WHAT IS CONTROLLING ?

“Controlling is determining what is

being accomplished, that is
evaluating the performance and, if
necessary, applying corrected
measures so that the performance
takes place according to plans. “

GEORGE R. TERRY
IMPORTANCE OF CONTROLLING
1. helps in helps
helps in
in accomplishing
accomplishing organizational
organizational goals
goals
accomplishing
organizational goals
2. helps in judging helps
helps in
in judging
judging accuracy
accuracy of
of standards
standards
accuracy of
standards
3. helps in making helps
helps in
in making
making efficient
efficient use
use of
of resources
resources
efficient use of
resources
4. helps employee helps
helps employee
employee motivation
motivation
motivation
5. helps in ensuring
order and discipline helps
helps in
in ensuring
ensuring order
order and
and discipline
discipline
6. Facilitating
coordination in action
Facilitating
Facilitating coordination
coordination in
in action
action
 LIMITATIONS OF CONTROLLING

 1.Difficulty in setting quantitative

standards

 2. Little control on external factors

 3. Resistance from employees

 4. Costly affair
CONTROLLING PROCESS
Measurement
Comparison of
Establishment
of performance
actual
of standards
with standards
performance

1. Establishment of T
standards a
ki
2. Measurement of n
performance g
c
3. Comparison of o
actual rr
e
performance with c
standardized ti
v
performance e
4. Taking corrective a
c
actions ti
o
n
NATURE OF CONTROLLING

1. Controlling is Forwa
rd
forward looking Implie lookin
s g
2. Controlling is taking
action
looking back
3. Controlling is a Look
ing
continuous back
process
Perva
4. Controlling is sive
pervasive functi
on
Contin
function uous
proce
5. Controlling ss
implies taking
actions
 TECHNIQUES OF MANAGERIAL
CONTROL

 There are two types of techniques of

managerial control :

1. Traditional techniques
2. Modern techniques
 TRADITIONAL TECHNIQUES

 Personal observation

 Statistical reports

 Breakeven analysis

 Budgetary control
 TRADITIONAL TECHNIQUES

 Return on investment
 Ratio analysis
 Responsibility accounting
 Management audit
 PERT and CPM
 Management information system
 TYPES OF BUDGETS
 SALES BUDGET :a statement of what an organization expects to sell in terms of
quantity as well as value.

 PRODUCTION BUDGET :a statement of what an organization plans to produce

in the budgeted period.

 MATERIAL BUDGET :a statement of estimated quantity and cost of materials

required for production.

 CASH BUDGET :anticipated cash inflows and outflows for the budgeted period.

 CAPITAL BUDGET :estimated spending on major long – term assets like new
factory or major equipment .

 RESEARCH AND DEVELOPMENT BUDGET :estimated spending for the

development of products and processes.