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Unit v Control

Control in management refers to monitoring activities to ensure they align with planned objectives, involving error checking and corrective actions. The process includes establishing standards, measuring performance, comparing results, and taking necessary actions. Various types of control exist, including feed-forward, concurrent, and feedback control, each with its own techniques and limitations.

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2 views

Unit v Control

Control in management refers to monitoring activities to ensure they align with planned objectives, involving error checking and corrective actions. The process includes establishing standards, measuring performance, comparing results, and taking necessary actions. Various types of control exist, including feed-forward, concurrent, and feedback control, each with its own techniques and limitations.

Uploaded by

Khusboo Jalan
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CONTROL

UNIT 5
CONCEPT

Control simply means to “monitor”.

Control is a managerial function of management which ensures actual


activities are conform to planned activities. Controlling is helpful in
checking errors for the purpose of taking corrective action.

Control is also known as “change management”, wherein standards are


set, performances are monitored and corrective actions are taken.
FEATURES OF CONTROLLING

• Evaluates Accuracy of Standard


• Ensures future planning by revising standards
• Minimizes Errors
• Optimum Utilization of Resources
• Improves overall performance of an organization
STAGES/PROCESS OF CONTROLLING

Step 1: Establishing Standards


Step 2: Measurement of Actual Performance
Step 3: Comparison of Actual Performance with the Standards
Step 4: Corrective Action (if needed/necessary)
TYPES OF CONTROL

1. Feed-Forward Control: These are future directed in which the


attempt is to detect and anticipate problems or deviations from the
standards in advance.
It anticipates problems and permit action to be taken before a problem
arises.

It is of two types:
Diagnostic Control: Seeks to determine what are the deviations occurring
Therapeutic Control: Seeks to determine what are the deviations as well
as the reason for the deviations
TYPES OF CONTROL

2. Concurrent (Prevention) Control: Also called “steering control”


because it allows people to act on a process or activity while it is
proceeding or occurring.

3. Feedback Control: It is known as post-action control. The measured


activity already occurs and it is impossible to go back and correct
performance to bring it up to standard.
LIMITATIONS/SHORTCOMINGS OF
CONTROL

Difficulty in setting quantitative standards


No control on external factors
Resistance from employees
Costly Affair
PRINCIPLES OF EFFECTIVE CONTROL

Principle of Reflection of Plans


Principle of Prevention
Principle of Future-Directed Control
Principle of Efficiency of Control
Principle of Organizational Suitability
Principle of Action
Principle of Standard
Principle of Assurance of Objective
Traditional Techniques of Managerial
Control

• Personal Observation
• Statistical Reports
• Break-even Analysis
• Budgetary Control
Modern Techniques of Managerial
Control

• Ratio Analysis: Liquidity Ratio, Solvency Ratio, Profitability


Ratio, Turnover Ratio
• Return on Investment (ROI)
• Responsibility Accounting
• Management Audit
• Programmed Evaluation and Review Technique (PERT)
• Critical Path Method (CPM)

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