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Controlling Full Chapter Part 2

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14 views

Controlling Full Chapter Part 2

Uploaded by

Bhavya Lumbhani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONTROLLING

PART- 2
XII BUSINESS STUDIES
2022-2023

SUNIL PANDA- THE EDUCATOR

SUNIL PANDA COMMERCE CLASSES


CONTROLLING PROCESS

Setting up standards (Target)

Measuring Actual performance

Comparison of performance

Analysing deviation

Taking corrective measures

Feedback in Controlling
Controlling Process
1. Setting up standards (target) :-
Standards mean target against which
the actual performance is measured this
is basis for comparison. The standards
must be achievable, high or very high
standard which can not be achieved are
no use. Standards must be setup
keeping in mind the resources of the
organization.

SUNIL PANDA COMMERCE CLASSES


2. Measurement of Actual performance :-
After setting up of standards the performance
of the employees are measured i.e. how
much work done by the employees
numerically performance is easily measured.
The performance must be measured
periodically in short period of time

SUNIL PANDA COMMERCE CLASSES


3. Comparison of Actual Performance with
standard performance :- After measuring the
performance the manager compares the
actual performances with planned
performances. If there is match in both then
the controlling function end there only but if
there is mismatch or deviation then the
manager tries to find out the reasons of
deviation and extent of deviation minor
deviation should be ignored but take timely
action for major deviation.

SUNIL PANDA COMMERCE CLASSES


4. Analysis deviation :- All deviation need
not be brought to the notice of top
management. A range of deviation should
be established and only cases beyond this
range should be brought to the knowledge
of top level management deviation must be
divided into two categories
A. Critical point control
B. Management by exception

SUNIL PANDA COMMERCE CLASSES


it means keeping focus on some key
areas (KRAS) and if there is any
deviation in these key areas then it
must be attended urgently. Key areas
are those which have impact on whole
organization.

Critical Point Control


(CPC)
it means a manager who tries to control
everything may end up controlling nothing.
The deviation which are beyond the
specific range should only by handled by
manager and small or minor deviation can
be ignored. Manager should not waste
time and energy in finding solution for
minor deviations should concentrate or
remaining deviation of high degree

Management By Exception
(MBE)
5. Taking corrective measures :-
on comparing the actual performance
with planned performance. The
manager will come to know about the
deviation between plan and actual
performance then next steps into know
the reasons for such deviation and try
to remove deviation in future manager
must take the corrective measures only
by finding the root casus of the
deviation and try to remove that cause

SUNIL PANDA COMMERCE CLASSES


6. Feedback in controlling :- After
making corrective measure a feedback
report is prepared it refers to list of
reasons for deviation of plan or for
inefficiency in overall working of
organisation. Feedback acts as a base
to establish the standard for next year.
Deviation may be positive and negative
Positive :- actual output 110, planned
output 100 (+10)
Negative :- actual output 90, planned
output 100 (-10)

SUNIL PANDA COMMERCE CLASSES


Relationship between Planning & Controlling

Nature & Both are Planning is


Both are
concept Forward and Prescriptive
Interdepend
Backward & Controlling
& Interlinked
looking is Evaluate
Two Aspect of Controlling:

Planning and Controlling both are supplementary functions.


Planning makes controlling effective and efficient, whereas controlling
improves future planning.
SUBS
CRIBE

SUNIL PANDA COMMERCE CLASSES

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