CONTROLLING

Acc to Terry & Franklin, controlling is determining what is being accomplished- that is evaluating performance and, if necessary, applying corrective measures so that performance takes place according to plans.

Relationship between Controlling & Planning

RELATIONSHIP

PLANNING

ACTIONS

CONTROLLING

CONTROL & OTHER MANAGERIAL FUNCTIONS

Planning as the basis Action as the essence Delegation as the key Information as the Guide

Importance of Control
Adjustment in Operations. Policy Verification Managerial Responsibility Psychological Pressure Coordination in Action Organizational Efficiency & Effectiveness

MANAGEMENT CONTROL PROCESS

ANALYSIS OF CAUSES OF DEVIATIONS

DESIRED PERFORMANCE

IMPLEMENTATION OF CORRECTIONS

CORRECTIVE ACTION PLAN

ACTUAL PERFORMANCE

MEASUREMENT OF PERFORMANCE

COMPARISION OF ACTUAL & STANDARD

IDENTIFICATION OF DEVIATION

STEPS IN CONTROLLING
Establishment of control standards. Measurement of Performance Comparing Actual & Standard Performance Correction of Deviations

Diff b/w Strategic & Operational Control

FACTORS BASIC QUESTION STRATEGIC CONTROL Are we moving in right direction? Proactive, continuous questioning of the basic direction of the strategy Steering the future direction of the organization External Environment Long-Term Top Management OPERATIONAL CONTROL How are we performing? Allocation and use of organizational resources

AIM

MAIN CONCERN

Action Control Internal Organization Short-Term Executive or Middle Management

FOCUS Time Horizon Exercise of Control

Stages of Control
Depending on the stage at which control is being exercised, it is of three types
Feedforward Control: Control of Inputs that are required in an action Concurrent Control: Control at different stages of action process Feedback Control: Post action control based on the feedback from the completed action

Stages of Control
Flow of Information

FFEDFORWARD CONTROL

CONCURRENT CONTROL

INPUTS

PROCESSING

OUTPUTS

FEEDBACK CONTROL

CONTROL AREAS
Control Over Policies Control over Organization Structure Control over Personnel Control over Wages and Salaries Control over Costs Control over Foreign Operations Overall Control

Management By Exception & Controlling

If a manager wants to control everything, he can control nothing Concentration on exceptions from planned performance, controls based on the timehonoured exception principle allow managers to detect those places where their attention is required and should be given. Management by exception is a system of identification and communication that signals to the manager when his attention is needed.

Design of Effective Control System

Integrating Strategic Planning and Control System Identifying Strategic Control Points Organizational Communication Motivational Dynamics

Essentials of Effective Control System

Certain things should be kept in mind
Reflecting Organizational Needs Forward Looking Promptness in reporting divisions Pointing out Exceptions at Critical Points Objective Flexible Economical Simple Motivating Reflecting Organizational Pattern