1. Management Function Controlling
Dr. John Abraham
Professor
UTPA

2. 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

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

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

5. 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

6. 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

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

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

9. JIT inventory