BASIC CONTROL PROCESS ESTABLISHMENT OF STANDARDS MEASUREMENT OF PERFORMANCE CORRECTION OF DEVIATIONS

CRITICAL-POINT STANDARDS PHYSICAL STANDARDS COST STANDARDS CAPITAL STANDARDS REVENUE STANDARDS PROGRAM STANDARDS INTANGIBLE STANDARDS GOALS AS STANDARDS

BENCHMARKING STRATEGIC BENCHMARKING OPERATIONAL BENCHMARKING MANAGEMENT BENCHMARKING DESIRED PERFORMANCE ACTUAL MEASURE OF PERFORAMNCE COMPARE ACTUAL Vs STANDARDS IDENTIFICATION OF DEVIATIONS ANALYSIS OF CAUSES OF PROGRAMME OF CORRECTIVE ACTIONS IMPLEMENTATION CORRECTION CONTROL AS A FEEDBACK SYSTEM

REAL-TIME INFORMATION AND CONTROL Real-time information for real-time control On-line control Off-line control FEEDFORWARD OR PREVENTIVE CONTROL Control is something that regulates the input for a desired output Speed control in a vehicle Feedforward Vs Feedback Requirements for a feedforward control -Analyse and identify the more important variables -Develop a model of the system -Update the model by changing their input variables and their relationships -Collect the input data -Compare with end result -Take corrective actions

CONTROL OF OVERALL PERFORMANCE Financial records for Overall performance Total revenue Profit PROFIT AND LOSS CONTROL The nature and purpose of profit and loss controls Limitations of profit and loss control

CONTROL OF OVERALL PERFORMANCE Financial records for Overall performance Total revenue Profit PROFIT AND LOSS CONTROL The nature and purpose of profit and loss controls Limitations of profit and loss control

CONTROL THROUGH RETUN ON INVESTMENT MANAGEMENT AUDITS AND ACCOUNTING FIRMS BUREAUCRATIC AND CLAN CONTROLS Bureaucratic -rules, regulations, policies, procedures and formal authority -requires standard tasks Clan control -based on norms, shared values, expected behaviours and organization culture

REQUIREMENTS FOR EFFECTIVE CONTROLS Tailoring controls to plans and positions Tailoring controls to individual managers Designing controls to point up exceptions at critical points Seeking objectivity of controls Ensuring flexibility of controls Fitting the control system to the organizational culture Achieving economy of controls Establishing controls that lead to corrective action

CONTROL TECHNIQUES AND IT The device for accomplishing control BUDGETING Formation of plans Dangers in budgeting -budgets often control the wrong things -they don’t address the quality of products and customer satisfaction Zero based budgeting