1. controlling

2. What Is control?
Control is the process of monitoring activities to ensure that they are being accomplished as planned and of correcting significant deviations.

3. The Control Process
A three step process including: 1.Measuring actual performance 2.Comparing actual performance against a standard 3.Taking action to correct deviations or inadequate standards

4. The control process Step 1 Step 2 Step 3 Measuring Actual Performance
GOALS
Organizational
Divisional
Departmental
Individual
Measuring
Actual Performance
Comparing Actual
Performance
Against Standard
Taking
Managerial Action
Step 1
Step 3
Step 2

5. The control process Steps in the control process:
Determine areas to control
Establish standards
Measure performance
Compare performance
Recognise positive performance
Take corrective actions
Adjust standards

6. Types of Control Input Output Feedforward Control Concurrent Feedback
Processes
Anticipates
problems
Corrects
problems as
they happen
problems after
they occur

7. Feed Forward Control
Regulates inputs to ensure that they meet standards necessary for transformation process
Concurrent Control
Regulates ongoing activities to ensure that they conform to orgnaization standards.
Feedback Control
Regulates products or service after completion to ensure final output meets organization standards and goals.

8. Managerial Approaches
Bureaucratic Control Organic / Clan Control Market Control

9. Bureaucratic Control
Managerial approaches relying on regulation through rules, policies, supervision, budgets, schedules, reward systems and other administrative mechanisms aimed at ensuring employees exhibit appropriate behaviors and meet performance standards

10. Characteristics of Bureaucratic Methods
1. Emphasizes organizational authority.
2. Relies on administrative and hierarchical mechanism, such as rules, regulation, procedures,standardization of activities.
3. Well-defined job descriptions.
4. Emphasis on extrinsic rewards (wages, pensions, status symbols) for controlling performance.

11. Organic/Clan Control
Managerial approach relying on values beliefs, traditions, corporate culture, shared norms and informal relationships to regulate employee behaviors and facilitate reaching of organizational goals.

12. Characteristics of Clan Control Methods
1. Results-based job descriptions that emphasize goals to be achieved
2. Regulate employee behavior by the shared values, norms, traditions, rituals and other aspects of the organization’s culture.
3. Emphasis on both extrinsic and intrinsic rewards (meaningful work) for controlling performance.
4. Harnessing of group controls, based on an assumption that group goals and norms assist in achieving organizational goals.

13. Market Control
Emphasizes the use of external market mechanisms to establish the standards used in the control system

14. Characteristics of Market control methods
1.Uses external market mechanisms, such as price competition and relative market share, to establish standards used in system. 2.Useful where marketplace competition is considerable

15. Traditional Financial controls
The budgets provide quantitative standards against which to measure and compare resources consumption.

16. Financial Ratios
Financial ratios compare two significant and express them as a percentage or ratio.
Liquidity Ratio
Profitability Ratio

17. Other financial controls
Other financial control Measures increasing in popularity.

18. Economic value added(EVA)
A financial tool for measuring corporate and divisional performance calculated by taking after tax operating profit minus the total annual cost of capital.

19. Market value added(MVA)
A financial tool that measures the stock market’s estimate of the value of a firm’s past and expected investment.

20. AUTOMATION BASED CONTROLS
Management Information Systems
MIS are used to provide management with needed information on a regular basis.
Organizes data in a meaningful way
Can access the information in a reasonable amount of time.

21. Balance Scorecard
A performance measurement tool that looks at four areas; financial customers, internal processes, and people/ innovation/ growth assets- that contribute to a company’s performance.

22. What to Control? Balanced Scorecard!
Customer perspective
Internal perspective
Innovation and learning perspective
Financial perspective

23. Planning Controlling Link
Goals
Objectives
Strategies
plans
Organizing
Structure
Human resource
mangement
Leading
Motivation
Communication
Individual and group behavior
Controlling standards
Measurements
Comparisons
actions