controlling with examples

1Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

CONTROLLING-With Live Example

A Group Presentation by:

1.Harshad Katikar

2.Aniket Ghodke

3.Atul Chavan

4.Amar Nikam

5.Sandeep Ekande

2Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Control

Process of monitoring activities to ensure that what is being accomplished matches plans and corrects significant

deviations

3Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Definition Of Control

Henry Fayol: Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles established.

4Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Definition Of Control

Koontz and O’Donnell: Controlling implies measurement of accomplishment against the standard & the correction of deviations to assure attainment of objectives according to plans.

5Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Characteristics :1.Continuous process.

2.Flexible and dynamic process.

3.Future oriented.

4.Planning and controlling are closely related.

5.Function of management.

6.Essence of control is action.

6Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Planning-Controlling

Linkage

Planning

OrganizingLeading

Controlling

7Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Purpose of Controls• Measuring PerformanceMeasuring Performance

• Comparing to StandardsComparing to Standards

• Taking Corrective ActionTaking Corrective Action

Goals and Goals and

ObjectivesObjectives

OrganizationalOrganizational

DivisionalDivisional

DepartmentalDepartmental

IndividualIndividual

8Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

The Control ProcessThe Control Process

IdentifyCauses

CorrectPerformance

VarianceAcceptable?

ReviseStandard

StandardAttained?

StandardAcceptable?

Yes

Yes

Yes

No

No

No

ComparePerformanceto Standard

MeasurePerformance

Objectives

Standard

Do Nothing

Do Nothing

9Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

What Does A Manager Measures?

• Information

• Operations

• Finances

• People

10Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

How Do Managers Measure Performance?

• Personal observations– MBWA

(management-by-walking about)

• Statistical reports• Oral reports• Written reports

11Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Discrepancies Between Goals and Performance

AcceptableAcceptableUpper LimitUpper Limit

StandardStandard

AcceptableAcceptableLower LimitLower Limit

AcceptableAcceptableRange ofRange ofVariationVariation

12Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Do NothingDo Nothing

TakingTakingManagerialManagerial

ActionAction

Immediate/BasicImmediate/BasicCorrectiveCorrective

ActionAction

ReviseRevisethe Standardthe Standard

13Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Input Processes Output

Three Types of Control

Feed forwardControl

Anticipates problems

Corrects problemsas they happen

FeedbackControl

Corrects problemsafter they occur

ConcurrentControl

14Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Control Techniques: “The tools, closely related to recent

advances in planning techniques, have brought the systems approach to problem of control a recognition that better planning is of no avail without better control.

- Koontz and O’Donnel.

Control techniques may be broadly classified into two categories:-

1. Traditional control techniques.

2. Advance control techniques.

15Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Traditional Control Techniques:-

a)Personal observation.

b)Statistical reports and analysis.

c)Break-even analysis.

d)Budgetary control.

e)Cost control.

f) Production control.

g)Inventory control.

16Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Advance control techniques:-

a.Management Audit.

b.Return On Investment.

c.Responsibility Accounting

d.Programme Evaluation and Review Techniques (PERT).

e.Critical Path Method (CPM).

f. Management Information Systems (MIS).

g.Zero-based Budgeting.

17Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Feedback Control

• Meaningful information

• Enhance employee motivation

18Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Flexibility

Qualities Of An Effective Control System

StrategicPlacement

UnderstandabilityReasonable

Criteria

EFFECTIVECONTROLSYSTEM

TimelinessMultipleCriteria

CorrectiveAction

Accuracy

EconomyEmphasis onExceptions

FOM 7.17

19Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Contingency Factors in Control Systems

Organization Size

Position and Level

Degree of Decentralization

Organizational Culture

Importance of an Activity

Small

Large

Informal, personnel management

Formal, personnel management

High

Low

High

Low

Open

Closed

High

Low

Contingency Variable Control Recommendations

Many complex criteria

Few, easy-to-measure criteria

Increased number of controls

Reduced number of controls

Informal, self-control

Formal, external controls

Comprehensive controls

Loose, informal controls

20Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Dysfunctional Controls

InflexibleControls

Unreasonable

Standards

21Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Contemporary Issues in Control

• Rights that manager has to monitor employee behavior

• Rights that manager has to control private lives of employees.

• Employers MAY be able to control employee behavior outside the work environment

22Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

You and Your Computer

• Employers can read your e-mail

• Employers can listen to your phone calls

• Employers can monitor your work by computer

23Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Employee Theft

• Ranges from embezzlement to fraudulent filing of expense reports to equipment removal

• Nearly 85% of all organizational theft and fraud is committed by employees

• Ready availability of information technology has made employee stealing an escalating problem

24Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

InformInformEmployeesEmployees

Written PolicyWritten Policy

Monitor forMonitor forBusiness ReasonsBusiness Reasons

Control and Control and EthicsEthics

25Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Entrepreneurs Controlling for Growth

• Plan for growth

• Organize for growth

• Control for growth

26Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Entrepreneurs Managing Downturns

• Recognizing crisis situations

• Things can turn worse

• Exit the venture

• Business evaluation

27Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Limitations of Controlling:-

1.External factors cannot be controlled.

2.Determinants cannot be controlled.

3.Responsibility cannot be fixed.

4.Difficulty in finding out causes of variation.

5.Determination of standard is difficult.

28Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

MUKESH AMBANI-Chairman, Reliance Industries

•Mukesh Ambani (April 19, 1957 Aden, Yemen) is the chairman, managing director and the largest shareholder

of Reliance Industries, India's largest private sector company and a Fortune 500 Company.

29Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

• Mukesh Ambani joined Reliance in 1981

• Took over Reliance Industries on 18 July 2005 • Initiated backward integration from textiles into polyester

fibres and further into petrochemicals. • He directed and led the creation of the world's largest

grassroots petroleum refinery at Jamnagar

30Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

• Mukesh Ambani has set up the largest and most complex information and

communications technology initiative in the world in the form of Reliance Infocomm

Limited.

• Successfully developed RIL from the 51% stake he held after the split.

31Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

The combined market capitalisation of the four Mukesh Ambani Group companies -- RIL, Reliance Petroleum (RPL), IPCL and Reliance Industrial Infrastructure Ltd (RIIL) has crossed the Rs 400,000 crore mark.

32Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

• On 26th Sept 2007, he was declared 4th richest person in the world, next to Carlos Slims, Bill Gates and Warren Buffet

• Is worth a staggering Rs. 2,20,463 or $ 55.8 million

33Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

• Before the split the annual turnover was estimated at $12bn. After it, on the basis of the 51% stake in RCC he generates an annual turnover of US $19.976 billion and profit of $2.033 billion.

34Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

BAJAJ AUTO LIMITED

• Bajaj Auto Limited (BAL) is the fourth largest 2-wheeler and the largest 3-wheeler manufacturer in the world. BAL is also the second-largest manufacturer and the largest exporter of two wheelers in India. It has manufacturing plants at Pune and Aurangabad in India and has plans for setting up plants in Indonesia and Brazil

35Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

BAL’S GROWTH

• During August 2006, Bajaj Auto reported motorcycle sales of 1,80,570 units, a growth of 21%.

• Total 2-wheeler & 3-wheeler sales grew by 11% from 1,86,802 units in 2005 to 208,163 units in 2006.

• The total 2-wheeler exports jumped 112% while 3-wheeler exports also increased by 59%.

• The Management believes that the motorcycle industry would touch 10 million units by 2010, which would further intensify BAL’s growth in its two-wheeler segment.

36Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

ACHIEVEMENT AREA

37Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

CONCLUSION

• Thus, we can conclude that control whether managerial or otherwise is an important principle and part of modern management.

• It is a vital link between the goals set, the performance put in, and the goals achieved.

38Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

BIBLIOGRAPHY

• Internet: Google, Wikipedia.

• Organizational Behavior & Principles& Practices Of Management - Prof. Ujagare

• Organizational Behavior & Principles & Practices Of Management- - Dr P.C.Pardeshi.

• The Times Of India

• Fundamentals Of Management- Robbins

39Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

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