22509 –

MANAGEMENT
Unit : Directing and Controlling
at
Forsupervisory level
MSBTE DIPLOMA
(Engineering) Students
(Fifth & Sixth semester)
 CO-3 - Use principles of
directing and controlling for
implementing the plans
UO-1 - Justify the chosen
needs of the directions and
instructions to the subordinates
to complete the specific task

Written by

Pravin Pathak , HOD (ADIS), Lecturer in

Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.
After this session, you
should be able to
 Describe
answer :- the
Importance of
 Directing in functions
List out the
Management
of Supervisor
CONTENT / AGENDA

PART ONE
► Key takeaway
► Need for Direction

► Characteristics of Direction • Direction (Need, Characteristics,

► Importance of Direction Importance, Principles &
Elements)
► Principles of Direction
• Functions of Supervisor
► Elements of Direction

PART TWO
PRESENTER
► Functions of Supervisor

► Requisites of Effective
Supervision
► Pravin Pathak ,
HOD (ADIS), Lecturer in
Page 4 February 25, 2025 Presentation title Chemical Engineering,
 PART 1

• Need for Direction

Section divider over two lines or
• Characteristics
three lines of
Direction
• Importance of
Direction
• Principles of
Direction
• Elements of
Direction

Page 5 February 25, 2025 Presentation title

Need for Direction

Following situations may arise due to lack of directions,

► Unable to execute planned work.
► Unable to identify resources.
► Chances of repetitive mistakes.
► Deviations may be arises in finished job.
► Unable to maintain Disciplinary standard.

Page 6 February 25, 2025 Presentation title

Characteristics of Direction
► It is managerial function.
► It ensures maximum contribution of individual.
► It coordinates group efforts.
► It provides stability.
► It helps to achieve the objectives of organization.
► It provides balance in organization.

Page 7 February 25, 2025 Presentation title

Importance of Direction

Page 8 February 25, 2025 Presentation title

Principles of Direction

Page 9 February 25, 2025 Presentation title

Elements of Direction

Page 10 February 25, 2025 Presentation title

 PART 2

• Functions of
Section divider over two lines or
supervisor
three lines

• Requisites of
Effective
Supervision

Page 11 February 25, 2025 Presentation title

Functions of supervisor

 Coordinate between  Compare the worker’s

employees and work performance with the
schedules. standards.
 Plan work as per schedule.  Introduce Modern work
 Achieve desired goal. methods.
 Issuing orders  Maintain Discipline.
 Motivate the subordinates.  Provide healthy
 Maintaining records. environment.
 Liaison between
 Replace broken tools and
management and workers. equipment.
 Sort out operational issues
on a day-to-day basis.

Page 12 February 25, 2025 Presentation title

Requisites of Effective Supervision

► Technical and Managerial knowledge.

► Use of authority.
► Knowledge of rules and regulations.
► Skill in leading.
► Skill for Human orientation.
► Issue clear instructions.

Page 13 February 25, 2025 Presentation title

Summary

► Direction
► Need
► Characteristics
► Importance
► Principles &
► Elements
► Functions of Supervisor

Page 14 February 25, 2025 Presentation title

Thank You
Pravin Pathak
9579026488
[email protected]
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO2
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO2 - Select the appropriate

method of communication from
the available methods with
motivation.
CONTENT / AGENDA

Key takeaway
Motivation
Motivation Process and Types of
► Definitions of Motivation Communication
► Motivation Process
► Positive motivation by means of PRESENTER
Incentive

► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 18 Maharashtra State Board of Technical Education February 25, 2025

Motivation

► Motivation means inspiring, stimulating or encouraging the sub-

ordinates with zeal to work.

► Positive, negative, monetary, non-monetary incentives may be used for

this purpose.

► Motivation is a process of influencing people.

► Motivation is the process of stimulating people to accomplish desired

goals of organization.

► Motivation helps individuals and groups in the organization for improved

Page 19 Maharashtra State Board of Technical Education February 25, 2025
Performance.
Definitions of Motivation

► According to William G. Scout, Motivation means a process of stimulating

people to action to accomplish desired goals.
► According to Fred Luthans, Motivation is a process which begins with a
physiological or psychological need or deficiency which triggers
behaviour or a drive that is aimed at a goal or incentive.
► According to Mc Farland, Motivation refers to the way in which urges,
drives, desires, aspirations, strivings or needs direct, control and explain
the behaviour of human beings.

► Following factors affect an employee's motivation,

► Attitude,

► Interests

Page 20 ► Needs Maharashtra State Board of Technical Education February 25, 2025
Motivation Process:

► Motivation process is based on how unsatisfied human need gets satisfied and
result in reduction of tension.
► Unsatisfied need :The need of an individual which is not satisfied.
► Tension :Unsatisfied need creates tension

► Drives :Tension creates drive and an individual start searching for alternative
to satisfy the need .
► Satisfied need: After opting the chosen alternative his need gets satisfied.

► Reduction of tension: The fulfilment of need results in relieving of tension.

Page 21 Maharashtra State Board of Technical Education February 25, 2025

Positive motivation by means of Incentive (Types of
Motivation)

Page 22 Maharashtra State Board of Technical Education February 25, 2025

 FINAL TAKEAWAY…..
• Motivation acts as a catalyst to increase the efficiency of
Management activity.

Page 23 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES
• Learning manual by MSBTE
• http://www.bimkadapa.in/materials/7-BC-UPTO%202.5-PDF.pdf

Page 24 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh

Polytechnic,
M.E. (ChemicalNashik.
Engineering),
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO2
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO2 - Select the appropriate

method of communication from
the available methods with
motivation.
CONTENT / AGENDA

Key takeaway
Communication
► Communication and it’s
Motivation Process and Types of
elements Communication
► Types of communication

► Upward communication
PRESENTER
► Downward communication

► Horizontal / Lateral
communication
► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 28 Maharashtra State Board of Technical Education February 25, 2025

Communication:

► It is transfer of information from the sender to the receiver .

► Communication plays key role in the success of a manager.
► Effective communication requires information and understanding.
► Directing abilities of manager mainly depend upon his communication
skills.
► Communication refers to process of exchange of ideas between persons.
► Successful communication causes desired changes.

► Elements of Communication Process

The proper sequence of elements in
the expanded communication model is as -
► Sender

► Message
► Transmission

► Recipient

► Meaning
Page 29 Maharashtra State Board of Technical Education February 25, 2025
Page 30 Maharashtra State Board of Technical Education February 25, 2025
Communication……………..

Page 31 Maharashtra State Board of Technical Education February 25, 2025

Communication……………..

In organisations, both formal and informal communications simultaneously take

place.
► Formal communications:
► Orders

► Memos

► Appeals
► Notes

► Circulars

► Agenda
► Minutes etc.
► Informal or grapevine communications:

► Rumours

► Whispers etc.

Page 32 Maharashtra State Board of Technical Education February 25, 2025

Types of communication

Based on the direction of flow of information communications are classified

as :

► Upward communication:
Upward communication flows from subordinates to superiors which involves
1. The grievance redressal procedure
2 .Open-door policy
3. Counselling, attitude questionnaires and exit interviews
4. Participative techniques
5. The ombudsperson

Page 33 Maharashtra State Board of Technical Education February 25, 2025

Downward communication & Horizontal /Lateral communication

► Downward communication
Downward communication flows from upper level to those at the lower level in the
organization.
Downward communication has five purposes:
► To give instruction to employees regarding their jobs and specific tasks.
► To provide information about organizational procedures and practices to new employees.

► To explain the rationale of a job to a new employee.

► To provide subordinates feedback about their job performance.
► To give information required by different teams and departments for the achievement of
goals.

► Horizontal /Lateral communication

► It refers to transmission of information
among positions of the same level.
► Horizontal communication aids to
Page 34
coordinates the activities of various departments.
Maharashtra State Board of Technical Education February 25, 2025
Forms (Types) of communication

Broadly there are three forms of communication

Oral Communication – face to face, video conferencing, telephone, in meeting,
lectures, interviews, etc

Face to Face communication Oral communication Presentation

Page 35 Maharashtra State Board of Technical Education February 25, 2025

Written communication

• Written communication - report, statement, circular, manual handbook, letter or memo.

Page 36 Maharashtra State Board of Technical Education February 25, 2025

 Nonverbal Communication actions

Page 37 Maharashtra State Board of Technical Education February 25, 2025

Nonverbal Communication

Expressed through the body – the facial expression, posture, gestures eye contact, touch etc.

Page 38 Maharashtra State Board of Technical Education February 25, 2025

Non Verbal Signs

Page 39 Maharashtra State Board of Technical Education February 25, 2025

 FINAL TAKEAWAY…..
• Choice of Appropriate method of Communication is very
important in Management.

Page 40 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES
• Learning manual by MSBTE
• http://www.bimkadapa.in/materials/7-BC-UPTO%202.5-PDF.pdf

Page 41 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh

Polytechnic,
M.E. (ChemicalNashik.
Engineering),
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO3
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO3 -Predict the possible

mistake for completing the
activities and
Elaborating the decision
CONTENT / AGENDA

Personal Counselling
Key takeaway
► Personal Counselling

► Need for personnel counselling

Motivation Process and Types of
► Qualities of supervisor as a Communication
counsellor
► Advanced predictions of possible
PRESENTER
mistakes

► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 45 Maharashtra State Board of Technical Education February 25, 2025

Personal Counselling

► Counselling of staff is becoming an essential function of the Supervisor.

► Supervisor is counsellor, mentor, and advisor of the workers.
► If he does not get connected with the workers by above roles, it is
difficult to achieve the objectives.
► Counselling at workplace is a way of the organization to care about its
employees.
► Apart from their personal problems, there are various reasons which can
create stress for the employees at the workplace.

Page 46 Maharashtra State Board of Technical Education February 25, 2025

Need for personnel counselling

► Unrealistic targets or work-load

► Constant pressure to meet the deadlines
► Responsibility and accountability
► Conflicts or bad inter-personal relations with
superiors and subordinates
► Problems in adjusting to the organizational culture
► Workers lose confidence in job
► Workers make repetitive mistakes
► Stress in work is affecting mental condition
► Counselling helps the employee to share and look at his problems from a
new perspective
Page 47 Maharashtra State Board of Technical Education February 25, 2025
Qualities of supervisor as a counsellor

► A counselling supervisor must demonstrate leadership skills

► Must have expertise in his / her field
► Motivational approach
► Problem solving nature
► Counsellor should possesses positive thinking
► Good communication skill
► Ethical manner

Page 48 Maharashtra State Board of Technical Education February 25, 2025

Advanced predictions of possible mistakes

► As a successful supervisor one must have logical skill and thinking ability
to predict what mistakes are possible in near future at work place.
Mistakes may be predicted by :
► Supervising the current working condition
► Comparing deviation with standards
► Analyzing workers general work attitude
► Complexity of used technology

Page 49 Maharashtra State Board of Technical Education February 25, 2025

 FINAL TAKEAWAY…..
• Personal counselling is very essential in Management.

Page 50 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES
• Learning manual by MSBTE

Page 51 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh

Polytechnic,
M.E. (ChemicalNashik.
Engineering),
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO3
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO3 -Predict the possible

mistake for completing the
activities and
Elaborating the decision
CONTENT / AGENDA

Key takeaway
Elaborating decision
Motivation Process and Types of
► Need to elaborate decision Communication
► Ways to elaborate decision
► Laying Disciplinary Standards PRESENTER

► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 55 Maharashtra State Board of Technical Education February 25, 2025

Elaborating decision (Decisions Making by Supervisor)

Page 56 Maharashtra State Board of Technical Education February 25, 2025

Need to elaborate decision.

► To create awareness about decision.

► To emphasis policies of management.
► To avoid confusion.
► To get clarity about their future work.
► To understand duties and responsibilities regarding these decisions.

Page 57 Maharashtra State Board of Technical Education February 25, 2025

 Ways to elaborate
decision

Respective management at their level can elaborate decision by following

ways:
► On notice board
► Written format
► In meetings
► During counselling
► By common Circular

Page 58 Maharashtra State Board of Technical Education February 25, 2025

Decisions that can be elaborated regarding following issues

► Uniform of workers
► Overtime times working hours
► Bonus and benefits
► Changes of Scheduled work
► Transfer of employee within organization
► Need of training to the employees

Page 59 Maharashtra State Board of Technical Education February 25, 2025

Laying Disciplinary Standards in overall working / Importance
of disciplinary standards

► Maintains Workplace Standards

► Controls Problem
► Quality in work performance
► Time factor followed
► Prevents More Serious Problems
► Standardization of work gets improved.
► Avoids Lawsuits
► Losses are reduced
► Avoids Misconduct

Page 60 Maharashtra State Board of Technical Education February 25, 2025

 Ways of laying disciplinary standards

► Disciplinary action
► Training for discipline
► Awards to disciplined practices
► Punishment to non- disciplined employee
► Time-in time, Out time , Before time
► Quality – zero error

Page 61 Maharashtra State Board of Technical Education February 25, 2025

 FINAL TAKEAWAY…..
• Personal counselling and elaborating decision is very essential
in Management.

Page 62 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES
• Learning manual by MSBTE

Page 63 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh

Polytechnic,
M.E. (ChemicalNashik.
Engineering),
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO4
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO4 -Describe the managerial

control action and remedial
measures required.
CONTENT / AGENDA

Controlling methods
Key takeaway
► Steps in control process

► Controlling methods
Motivation Process and Types of
► Different types of Budget & it’s Advantages Communication

► Controlling Tools

PRESENTER

► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 67 Maharashtra State Board of Technical Education February 25, 2025

 Steps in control process

Controlling is a systematic process involving the following steps.

► Setting performance standards

► Measurement of actual performance

► Comparison of actual performance with standards

► Analysing deviations

► Taking corrective action

Page 68 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process ……………….in details

1) Setting performance standards

► The first step in the controlling process is setting up of performance standards.

► Standards are the criteria against which actual performance would be measured.
► Standards serve as benchmarks towards which an organisation strives to work.

► Standards can be set in both quantitative as well as qualitative terms.

Quantitative Standards set in terms of

► Cost to be incurred.

► Revenue to be earned.

► Product units to be produced and sold.

► Time to be spent in performing a task/

Qualitative standards should-

► Improve goodwill and motivation level of employees

► Be flexible enough to be modified whenever required.

Page 69 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process ……………….in details

2) Measurement of Actual Performance:

► Once performance standards are set, the next step is

► measurement of actual performance. There are several

► techniques for measurement of performance.

► These include personal observation, sample checking,

performance reports.
Following are the ways for measuring performance:
► Preparing performance report of an employee.

► Measure Company’s performance by calculating

► gross profit ratio, debtor turnover ratio, return on investment, current ratio at periodic intervals
► Inspect every unit or sample checking to ensure the quality standards

3) Comparing Actual Performance with Standards:

► This step involves comparing the actual performance with standards laid down in order to find
the deviations. For example, performance of a salesman in terms of unit sold in a week can be
easily measured against the standard output for the week.

Page 70 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process

4) Analyzing Deviations:
► Deviations in key areas of business need to be attended more urgently as compared to deviations in certain
insignificant areas. Critical point control and management by exception should be used by a manager

5) Taking Corrective Action:

The final step in the controlling process is to take corrective action.
Causes of deviation Corrective action taken
Defective material Change the quality specification for the
material used
Defective machinery Repair the existing machine or replace the
machine if it cannot be repaired
Obsolete machinery Undertake technological upgradation of
machinery
Defective process Modify the existing process

Defective physical Improve the physical conditions of work

conditions of work

Page 71 Maharashtra State Board of Technical Education February 25, 2025

Controlling methods

Traditional Techniques
a) Personal observation
b) Statistical reports
c) Breakeven analysis
d) Budgetary control

a) Personal observation
► Personal observation enables the manager to collect first-hand information.

► It also creates a psychological pressure on the employees to perform well as they are aware that
they are being observed personally on their job.
► it is a very time-consuming exercise and cannot effectively be used in all kinds of jobs.

Page 72 Maharashtra State Board of Technical Education February 25, 2025

Controlling methods

b) Statistical reports
► It can be defined as an overall analysis of reports and data which is used in the form of averages,
percentage, ratios, correlation, etc., present useful information to the managers regarding the
performance of the organization in various areas.
► Various forms like charts, graphs, tables, etc., enables the managers to read them more easily &
allow a comparison to be made with performance in previous periods & also with the
benchmarks.

c) Breakeven analysis
► This technique used by managers to study the relationship between costs, volume and
profits.
► It determines the probable profit and losses at different levels of operations.

► The sales volume at which there is no profit, no loss is known as breakeven point.

► It is a useful technique for the managers as it helps in estimating profits at different levels of
activities.
Page 73 Maharashtra State Board of Technical Education February 25, 2025
Controlling methods

► Break even Analysis

► Breakeven Point =
Fixed Costs /Selling price per unit –
Variable cost per unit

Page 74 Maharashtra State Board of Technical Education February 25, 2025

Controlling methods

(d) Budgetary control

► Budgetary control is a technique in which all operations are planned in advance in the form of
budgets and actual results are compared with budgetary standards.
► It helps to take necessary actions so that organisational objectives are accomplished

► A budget is a quantitative statement for a definite future period of time for the purpose of
obtaining a given objective.
► It will contain figures of forecasts both in terms of time and quantities.

Page 75 Maharashtra State Board of Technical Education February 25, 2025

Different types of Budget

Research and
Production Material Cash Capital
Sales Budget Development
Budget Budget Budget Budget
Budget

A
Estimate
A statement A statement statement Estimate
Anticipated spending
states an states an of spending for
cash in flow on long-
organisation organisation estimated the
and out flow term assets
expects to sell plans to quantity development
for the like new
in terms of produce in the and cost of or refinement
budgeted factory or
quantity as budgeted materials of products
period major
well as value period required for and processes
equipment
production

Page 76 Maharashtra State Board of Technical Education February 25, 2025

Advantages of Budgeting

► Budgeting focuses on specific and time-bound targets and thus, helps in attainment of
organisational objectives.
► Budgeting is a source of motivation to the employees who know the standards against which
their performance will be appraised and thus, enables them to perform better.
► Budgeting helps in optimum utilisation of resources by allocating them according to the
requirements of different departments.
► Budgeting is also used for achieving coordination among different departments of an
organisation and highlights the interdependence between them. For instance, sales budget
cannot be prepared without knowing production programmes and schedules.
► It facilitates management by exception by stressing on those operations which deviate from
budgeted standards in a significant way.

Page 77 Maharashtra State Board of Technical Education February 25, 2025

Controlling Tools

These include:
► Return on investment
► Ratio analysis
► Responsibility accounting
► Management audit
► PERT and CPM
► Management information system

Page 78 Maharashtra State Board of Technical Education February 25, 2025

FINAL TAKEAWAY…..

► The managerial control action and remedial measures required.

Page 79 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES

• Learning manual by MSBTE

Page 80 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh Polytechnic, Nashik.
M.E. (Chemical Engineering), ADIS
 ME/EE/EP/EU/CH/PS
_22509 - MANAGEMENT
_CO3 – UO4
Pravin Pathak, HOD (ADIS),
Lecturer in Chemical Engg,
K.K.Wagh Polytechnic, Nashik.
MSBTE LEAD: Learning at your
Doorstep
CO3 -Use principles of
directing and controlling for
implementing the plans

UO4 -Describe the managerial

control action and remedial
measures required.
CONTENT / AGENDA

Controlling methods
Key takeaway
► Steps in control process

► Controlling methods
Motivation Process and Types of
► Different types of Budget & it’s Advantages Communication

► Controlling Tools

PRESENTER

► Pravin Pathak ,
HOD (ADIS), Lecturer in
Chemical Engineering,
K. K. Wagh Polytechnic, Nashik.

Page 84 Maharashtra State Board of Technical Education February 25, 2025

 Steps in control process

Controlling is a systematic process involving the following steps.

► Setting performance standards

► Measurement of actual performance

► Comparison of actual performance with standards

► Analysing deviations

► Taking corrective action

Page 85 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process ……………….in details

1) Setting performance standards

► The first step in the controlling process is setting up of performance standards.

► Standards are the criteria against which actual performance would be measured.
► Standards serve as benchmarks towards which an organisation strives to work.

► Standards can be set in both quantitative as well as qualitative terms.

Quantitative Standards set in terms of

► Cost to be incurred.

► Revenue to be earned.

► Product units to be produced and sold.

► Time to be spent in performing a task/

Qualitative standards should-

► Improve goodwill and motivation level of employees

► Be flexible enough to be modified whenever required.

Page 86 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process ……………….in details

2) Measurement of Actual Performance:

► Once performance standards are set, the next step is

► measurement of actual performance. There are several

► techniques for measurement of performance.

► These include personal observation, sample checking,

performance reports.
Following are the ways for measuring performance:
► Preparing performance report of an employee.

► Measure Company’s performance by calculating

► gross profit ratio, debtor turnover ratio, return on investment, current ratio at periodic intervals
► Inspect every unit or sample checking to ensure the quality standards

3) Comparing Actual Performance with Standards:

► This step involves comparing the actual performance with standards laid down in order to find
the deviations. For example, performance of a salesman in terms of unit sold in a week can be
easily measured against the standard output for the week.

Page 87 Maharashtra State Board of Technical Education February 25, 2025

Steps in control process

4) Analyzing Deviations:
► Deviations in key areas of business need to be attended more urgently as compared to deviations in certain
insignificant areas. Critical point control and management by exception should be used by a manager

5) Taking Corrective Action:

The final step in the controlling process is to take corrective action.
Causes of deviation Corrective action taken
Defective material Change the quality specification for the
material used
Defective machinery Repair the existing machine or replace the
machine if it cannot be repaired
Obsolete machinery Undertake technological upgradation of
machinery
Defective process Modify the existing process

Defective physical Improve the physical conditions of work

conditions of work

Page 88 Maharashtra State Board of Technical Education February 25, 2025

Controlling methods

Traditional Techniques
a) Personal observation
b) Statistical reports
c) Breakeven analysis
d) Budgetary control

a) Personal observation
► Personal observation enables the manager to collect first-hand information.

► It also creates a psychological pressure on the employees to perform well as they are aware that
they are being observed personally on their job.
► it is a very time-consuming exercise and cannot effectively be used in all kinds of jobs.

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Controlling methods

b) Statistical reports
► It can be defined as an overall analysis of reports and data which is used in the form of averages,
percentage, ratios, correlation, etc., present useful information to the managers regarding the
performance of the organization in various areas.
► Various forms like charts, graphs, tables, etc., enables the managers to read them more easily &
allow a comparison to be made with performance in previous periods & also with the
benchmarks.

c) Breakeven analysis
► This technique used by managers to study the relationship between costs, volume and
profits.
► It determines the probable profit and losses at different levels of operations.

► The sales volume at which there is no profit, no loss is known as breakeven point.

► It is a useful technique for the managers as it helps in estimating profits at different levels of
activities.
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Controlling methods

► Break even Analysis

► Breakeven Point =
Fixed Costs /Selling price per unit –
Variable cost per unit

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Controlling methods

(d) Budgetary control

► Budgetary control is a technique in which all operations are planned in advance in the form of
budgets and actual results are compared with budgetary standards.
► It helps to take necessary actions so that organisational objectives are accomplished

► A budget is a quantitative statement for a definite future period of time for the purpose of
obtaining a given objective.
► It will contain figures of forecasts both in terms of time and quantities.

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Different types of Budget

Research and
Production Material Cash Capital
Sales Budget Development
Budget Budget Budget Budget
Budget

A
Estimate
A statement A statement statement Estimate
Anticipated spending
states an states an of spending for
cash in flow on long-
organisation organisation estimated the
and out flow term assets
expects to sell plans to quantity development
for the like new
in terms of produce in the and cost of or refinement
budgeted factory or
quantity as budgeted materials of products
period major
well as value period required for and processes
equipment
production

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Advantages of Budgeting

► Budgeting focuses on specific and time-bound targets and thus, helps in attainment of
organisational objectives.
► Budgeting is a source of motivation to the employees who know the standards against which
their performance will be appraised and thus, enables them to perform better.
► Budgeting helps in optimum utilisation of resources by allocating them according to the
requirements of different departments.
► Budgeting is also used for achieving coordination among different departments of an
organisation and highlights the interdependence between them. For instance, sales budget
cannot be prepared without knowing production programmes and schedules.
► It facilitates management by exception by stressing on those operations which deviate from
budgeted standards in a significant way.

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Controlling Tools

These include:
► Return on investment
► Ratio analysis
► Responsibility accounting
► Management audit
► PERT and CPM
► Management information system

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FINAL TAKEAWAY…..

► The managerial control action and remedial measures required.

Page 96 Maharashtra State Board of Technical Education February 25, 2025

REFERENCES

• Learning manual by MSBTE

Page 97 Maharashtra State Board of Technical Education February 25, 2025

 THANKS!
Pravin Pathak
+91 9579026488
[email protected].
in

Written by

Pravin Pathak, HOD (ADIS), Lecturer in Chemical Engineering, K. K. Wagh Polytechnic, Nashik.
M.E. (Chemical Engineering), ADIS