Control :

Concept of Control:
Controlling is the process through which
management assures that the actual
performance confirms with the planned
performance .Control is basic managerial
function which implies measurement and
correction of performance of subordinates to
ensure that the predetermined objectives are
accomplished .
Control :
Control
Provides organizations with indications of
how well they are performing in relation to
their goals.
Provides a mechanism for adjusting
performance to keep organizations moving
in the right direction.
In simple it is the process of ensuring that
actual conform to planned activities

Control Responsibilities differ according to Managerial Level:
Integration with Planning
the more control is linked to planning, the more effective
the control system.
Flexibility
the control system must be flexible enough to
accommodate change.
Accuracy
Inaccurate information results in bad decision making
and inappropriate managerial actions.

Characteristics of Effective Control :
Timeliness
A control system should provide
information as often as necessary.
Objectivity
A control system
must be free from bias
and distortion.

Characteristics of Effective Control (contd)
TYPES OF CONTROL
Past-oriented Controls The Process of Controlling :
They examine what has happened in a particular period in
the past. These controls can be used to plan future
behavior in the light of past errors or successes .
Future-oriented Controls :
These are also known as steering controls or feed-
forward controls and are designed to measure results
during the process so that action can be taken before
the job is done or the period is over. They serve as
warning-posts principally to direct attention rather than to
evaluate e.g.: Cash flow analysis, funds flow analysis,
network planning etc.
Figure 14.3 : Steps in the Control Process
Establish Standards
Control standarda target against which subsequent performance
will be compared.
Control standards should be expressed in measurable terms.
Control standards should be consistent with organizational
goals.
Control standards should be identifiable indicators of
performance.
Measure Performance
Performance measurement is an ongoing process.
Performance measures must be valid indicators (e.g., sales, costs,
units produced) of performance.

Steps in the Control Process :
Compare Performance Against Standards

Define what is a permissible deviation from the performance
standard.
Utilize the appropriate timetable for measurement.
Consider Corrective Action

Maintain the status quo (do nothing).
Correct the deviation to bring operations into compliance
with the standard.
Change the standard if it was set too high or too low.

Steps in the Control Process :
On the basis of Areas of Control
Physical resourcesinventory management, quality
control, and equipment control.
Human resourcesselection and placement, training
and development, performance appraisal, and
compensation.
Information resourcessales and marketing forecasts,
environmental analysis, public relations, production
scheduling, and economic forecasting.
Financial resourcesmanaging capital funds and cash
flow, collection and payment of debts.

Types of Controls :
On the basis of time: i.e., before, during or after
Feed forward controls: it is also known as
preliminary or preventive control.
Concurrent control: it involves the regulation of
ongoing activities that are part of the
transformation process to ensure that conform to
organizational standards.
Feedback controls: it focus on the result of
operations.

Types of Controls :
The control device may be classified as:
Traditional devices
Modern devices


Techniques of control :
Return on investment control
PERT /CPM
MIS-Management Information Systems
Management audit

Modern devices :
CPM :
A critical path consists of that set of dependent tasks (each
dependent on the preceding one), which together take the longest
time to complete. A CPM chart can define multiple, equally critical
paths. The tasks, which fall on the critical path, should be noted in
some way, so that they may be given special attention. One way is to
draw critical path tasks with a double line instead of a single line.
Tasks, which fall on the critical path, should receive special attention
by both the project manager and the personnel assigned to them. The
critical path for any given method may shift as the project
progresses; this can happen when tasks are completed either
behind or ahead of schedule, causing other tasks which may still be
on schedule to fall on the new critical path
Budget is a financial plan for a definite period.
It can be:
Master budget
Periodic budget
Performance budget
Zero-base budget

Budgetary control :

Sales budget
Selling & distribution cost budget
Production budget
Production cost budget
Purchase budget
Labour buget
Capital expenditure budget
Cash budget

Classification on the bases of purpose :
It is an important function of management
It helps in preventing mistakes in future
It is a continuous activity
it aims to achieve results.
It manages both human & physical factors .

To sum up control is :
GLOBAL CONTROLLING & GLOBAL CHALLENGES
Understanding different cultures: According to Richard D Lewis, the different
nations :
and cultures can be put into three groups:

1.Linear-active: In these cultures, people focus on a scheduled timeline
and like to do one thing at a time. The people in these cultures are
task-oriented planners.

2. Multi-active: People belonging to these cultures are more focused
on interactions and dialogues. Meetings are given priorities and
discussions and dialogues help to build relationship and it is this
relationship that determines what comes out of work.
3. Reactive: People belonging to this type of culture are more
introverted. They are respect-oriented listeners and concentrate on
what people have to say without interruption and even if they interrupt
it is rarely done. People in these cultures usually express their ideas
in a passive voice.
Co-ordination
&
Control
20
Co-ordination & Control
21
Coordination is the orderly arrangement of group efforts to
provide unity of action in the pursuit of a common purpose .
22
Coordination :
23
Coordination is considered as a permeating function
of management passing through the managerial
functions of planning ,Organizing , directing &
Control .
Techniques / Methods to Ensure
Effective Co-ordination:
24
Clearly defined Goals
Clear lines of authority & responsibility
Comprehensive programmes and policies
Staff meetings
Special coordinators
Cooperation
Effective Communication
Clearly defined Goals :
The goals of the organization should be laid
down clearly .Every individual in an enterprise
should understand the overall objectives and
contribution by his job to these objectives.

Unity of purpose is a must for achieving
proper coordination .
25
Clear lines of authority and
responsibility:
This would help in reducing the conflicts
among different positions which is essential
for sound coordination .


Comprehensive programmes and policies :
Everybody understands the programmes and
policies in the same sense.
26
Staff meetings :
Periodic staff meeting can be highly effective
in promoting coordination through better
communication .

Special Coordinator :
I n big Organizations , special coordinators
are appointed .
27
Cooperation & Effective Communication :
Coordination must be accompanied by
cooperation.
The individuals in the organization must be
willing to help each other .
Effective Communication :
I t is the key to proper coordination .The
channels in the organization should be reliable
so that they can create proper understanding.
28
liaison role :
Growth of interactions and volume of
information between any two or more
departments may make it necessary to
establish a liaison or linkage role strategy
between them. accordingly, anyone or more
persons may be assigned the duty of resolving
the issues between any two or more interacting
departments to perform liaison role.

29
Control :
30
Concept of Control:
Controlling is the process through which
management assures that the actual
performance confirms with the planned
performance .Control is basic managerial
function which implies measurement and
correction of performance of subordinates to
ensure that the predetermined objectives are
accomplished .
31
Control :
Control
Provides organizations with indications of
how well they are performing in relation
to their goals.
Provides a mechanism for adjusting
performance to keep organizations
moving in the right direction.
I n simple it is the process of ensuring that
actual conform to planned activities

32
Control Responsibilities differ according
to Managerial Level:
33
Characteristics of Effective Control :
I ntegration with Planning
the more control is linked to planning, the
more effective the control system.
Flexibility
the control system must be flexible enough to
accommodate change.
Accuracy
I naccurate information results in bad
decision making and inappropriate
managerial actions.

34
Characteristics of Effective Control
(contd)
Timeliness
A control system should provide information
as often as necessary.
Objectivity
A control system
must be free from bias
and distortion.

35
Steps in the Control Process
36
Steps in the Control Process :
Establish Standards
. Control standarda target against which subsequent
performance will be compared.
Control standards should be expressed in measurable
terms.
Control standards should be consistent with organizational
goals.
Control standards should be identifiable indicators of
performance.
Measure Performance
. Performance measurement is an ongoing process.
. Performance measures must be valid indicators (e.g., .
sales, costs, units produced) of performance.
37
Steps in the Control Process :
Compare Performance Against Standards
Define what is a permissible deviation from the
performance standard.
Utilize the appropriate timetable for measurement.
Consider Corrective Action
Maintain the status quo (do nothing).
Correct the deviation to bring operations into
compliance with the standard.
Change the standard if it was set too high or too
low.

38
Types of Controls :
On the basis of Areas of Control
Physical resourcesinventory management, quality
control, and equipment control.
Human resourcesselection and placement,
training and development, performance appraisal,
and compensation.
I nformation resourcessales and marketing
forecasts, environmental analysis, public relations,
production scheduling, and economic forecasting.
Financial resourcesmanaging capital funds and
cash flow, collection and payment of debts.

39
Types of Controls :
On the basis of time: i.e., before, during or after
Feed forward controls: it is also known as
preliminary or preventive control.
Concurrent control: it involves the regulation of
ongoing activities that are part of the transformation
process to ensure that conform to organizational
standards.
Feedback controls: it focus on the result of
operations.

40
Techniques of control :
The control device may be classified as:
Traditional devices
Modern devices


41
Modern devices :
Return on investment control
PERT
MI S-Management I nformation Systems
Cybernetics
Management audit

42
Budgetary control :

Budget is a financial plan for a definite period.
I t can be:
Master budget
Periodic budget
Performance budget
Zero-base budget

43
Classification on the bases of purpose
Sales budget
Selling & distribution cost budget
Production budget
Production cost budget
Purchase budget
Labour buget
Capital expenditure budget
Cash budget

44
To sum up control is :
I t is an important function of management
I t helps in preventing mistakes in future
I t is a continuous activity
it aims to achieve results.
I t manages both human & physical factors .

45


J apanese management & Z culture of
American companies

Differences between American and J apanese
Management Practices

William Ouchi proposed the concept of theory Z organizations.
The concept was developed in his efforts to understand the best
practices of J apanese management which can be used in
companies of USA. He identified the differences between
American and J apanese organizations in some aspects.



46
American Organizations J apanese Organizations
Short-term employment Lifetime employment
I ndividual decision making Collective decision making
I ndividual responsibility Collective responsibility
Rapid evaluation &
promotion
Slow evaluation & promotion
Explicit control mechanisms I mplicit control mechanisms
Specialized career paths Non specialized career paths
Segmented concern for
employee as an employee
Holistic concern for employee
as a person
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Thoughts for You
God has not promised skies always blues
flowers-strewn pathways all our life through,
God has not promised sun without rain; joy
without sorrow, peace without pain .But God
has promised rest of the labour, strength for
the day, Light for the Way

48
Keys to more efficient study :
P to V Formula
Preview: Browse through the material to get a
general idea of what it is about .
Question: Ask yourself a few question which you
want your reading to answer .
Read: Read the material and make sure that you
understand it. Underline key words and /or
Phrases.
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Summarize: Make notes on what you read.
Test: Test yourself on what you have read by using
the information to answer the questions you
asked under Q above. Answer questions given at
the end of the chapter in your book .
Use: Try to put the material to some practical use in
everyday affairs.
Visualize: Picturise the ideas in your mind`s eye.
All the Best !
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