179206880-Copy-of-controlling-techniques-ppt.ppt

The Presentation on
Control Systems and Control Techniques
Faculty-
Mrs. Anamika Sharma
Principles And Practices Of Management
By-
Pooja Boolani
Mohd. Arshad
Neelu Bhuria
MS sunita
Mahendra
MBA SEM-I
1

CONTROL AND CONTROL SYSTEMS
“What gets measured happens”
• What is
important to
know about the
control process? •What are some
organizational
control systems
and techniques?
2

Control Systems
• Controlling is one of the four management
functions.
• Control begins with objectives and standards.
• Control measures actual performance.
• Control compares results with objectives and
standards.
• Control takes corrective action as needed.
• Control focuses on work inputs, throughputs, and
outputs.
3

Control Systems
• Controlling
– The process of measuring performance and taking action
to ensure desired results
4

Control Systems
• Output Standard
– Measures performance results in terms of quantity,
quality, cost, or time.
• Input Standard
– Measures work efforts that go into a performance
task
5

Types of controlling techniques
§ - General Techniques of Control
§ - Special Techniques Of Control
6

General Techniques of Control
7

1.Personal Observation
Through Direct observation and personal observation
a manager can periodically observe his subordinates ,
their work methods and their results.
Observation leads to evaluation of work and
encourages employees to perform well.
8

2.Setting examples
manager should put his ideal behavior in directing his
subordinates.a manager can teach by his actions and
behavior.
9

3.Records and reports
Through records and reports a manager can measure
performance and results.He can maintain that also for
future use.
10

4.Policies and procedures
These reflect the past experiences of many managers
and act as guides for managers to use in controlling
the behavior and output of workers.
Policies provide means of self-control and are primary
instrument to coordination and control.
11

5.charts and manuals
Progress charts permit each department to measure the
performance of its employees against the past results.
Manuals also serve the purpose of management
control.
12

6.Standing rules and limitation
Standing orders-tell employees what to do under given
set of conditions.
Standing procedures-tell employees spell out the
sequence of given conditions.
Definite limits are placed beyond which employees
with decision making power cannot go without
express permission.
13

7.Written Instructions
Written instruction through circular letters ,bulletin
,notes etc are used to check the subordinate's
performance.
14

8.Censure
It is any form of criticism or disapproval .It may be
reprimand or ridicule for the careless employees .
Should be used with wisdom and understanding.
15

9.Disciplinary Action
when an employee makes mistakes or has become a
chronic absentee ,may be given a warning of action
against him . In serious matters employees can be
suspended to control their irregular behavior.
16

10.control unit or control selection
it is used to control overall performance of the
organization. Also known as management control
department. Supplies facts ,recommendations to have
orderly and efficient management. It reviews
directives ,methods and policies.
17

11.Social Control Devices
Are the norms ,customs ,conventions ,unwritten laws
,habits ,practices ,status ,and prestige systems etc.
which are organizationally determined value to check
employee’s behavior.
18

12.Rewards
It is related to verbal form or linked with performance
and motivation Or performance evaluation or work
satisfaction. Work targets achieved in accordance with
present targets.
19

13.Budgets
Give the effective means of controlling operations.
Actual performance is measured and compared against
budgeted standards.
20

14.Accounting
it lays down for recording the business transactions
and operations. This system helps to check past figures
and decide the best action to be taken in future.
21

15.Internal Auditing
it is an examination of how well an organization is
functioning. It involves a careful look at operations
compared with plans. It is concerned with finding out
the effectiveness of management policies.
22

16.Statistical data
Can be useful in following processes
ώPurchasing Control
buying what is needed at the right quality, at a good
price, and for on-time delivery.
ώ Supply Chain Management
uses information technology to link suppliers and
purchasers in cost efficient ways.
ώ Inventory Control
ensures that inventory is only big enough to meet ώ
immediate needs.
23

ώ Economic Order Quantity
places new orders when inventory levels fall to
predetermined points.
ώ Just-in-time Scheduling
routes materials to workstations just in time for use.
ώTotal Quality Management (TQM)
commits to quality objectives, continuous
improvement, and doing things right the first time.
ώQuality Circle
is a small group that meets regularly to discuss ways
of improving work quality
24

17.Break-even analysis
It shows the relation between different volumes ,costs
,sales price and sales mix to profits.
Breakeven is that level of volume at which revenue is
exactly equal to the cost and helps to identify the
minimum sales volume to prevent a loss or achieve
established profit objectives.
How to Calculate a
Breakeven Point
Breakeven Point =
Fixed Costs / (Price -
Variable Costs)
25

18.Self-control
It occurs through proper orientation and training.
Employees’ work attitude also serves to reinforce their
self control.
26

Special Techniques Of Control
27

1.Human Asset Accounting
Costs associated with recruiting ,selecting and training
employees are treated as expense rather than
investment. To control cost of human resources this
technique is developed and used.
28

2.Standard Costing
in this system standards for materials ,labor ,overheads
,and other components are laid down and actual costs
are compared with standard costs.
29

3.Cash Flow Analysis
It helps in the assessment of the cash resources
available to a firm ,their uses ,and their timing.
30

4.Management Information System
It is developed to collect ,process and distribute
information about the operations of the firm to its
managers and others.
31

5.Cybernetic Control System
based on self-regulating procedures that automatically
detect and correct deviations from planned activities
and effectiveness levels.
32

Characteristics of a good control system /
techniques
Specially designed
Economical
Flexible
Accurate
Timely
Impartial And Coordinated
Focus On Results
Follow Organizational Patterns
Forward Looking
Periodic Review 33

179206880-Copy-of-controlling-techniques-ppt.ppt

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