Management Function Controlling Dr. John Abraham Professor UTPA

Controlling Keeping the organization in the right track Keeping it on schedule Making necessary adjustment Controlling devices –Budget –Statistics –Break-even analysis –Internal & external audits

Standards Establish standards –Quantity –Quality –Time –etc. Specific measurable outcomes (such as budget, sales quota, production quota, etc). Establish clear performance expectations

Test results against standards Sampling may be sufficient –Random sampling –Control sample introduced

Correct as needed Check income and expenses against budgeted amounts and adjust. Avoid temptations to spend the budgeted amounts –Most prevalent in large organizations, govt. organizations. –There are fixed costs and variable costs in a budget. Historical statistics comparisons. Audits

Training Training may be a type of corrective action Motivating people to make corrective action Salary structure may be revised to include bonus or commission

Centralized vs decentralized control Central control is not very popular. Self-control or personal control is preferred.

Time control Gantt Milestone Chart PERT chart Program evaluation and review technique

JIT inventory