BYKRISHNA SOUJANYAM120002MS

CONTROLLING

TYPES OF CONTROL• Based on elements to be controlled :Strategic control.Operational control.• Based on stage at which control can be exercised in controlling the work outcome :Feed-forward control.Concurrent control.Feedback control.

BASED ON ELEMENTS TO BE CONTROLLED1. STRATEGIC CONTROL

• Process of taking into account, the changing planning

premises, both external and internal to the organization,

on which the strategy is based.

• Continuous evaluation of strategy along with its

implementation.

• Taking corrective actions to adjust the strategy to the new

requirements.

• Time lag between strategy formulation and its

implementation- strategy may not work effectively.

2. OPERATIONAL CONTROL

• Concerned with action or performance.

• Aimed at evaluating the performance of the organization

as a whole or its different components – strategic business

units, divisions, and departments.

• Can be exercised at different stages of work performance.

FACTORS STRATEGIC CONTROL OPERATIONAL CONTROL

Basic question

Are we moving in the right direction ?

How are we performing ?

Aim Proactive, continuous questioning of the basic direction of strategy.

Allocation ad use of organizational resources.

Main concern

Steering the future direction of the organization.

Action Control.

Focus External Environment. Internal Environment.

Time horizon

Long – term. Short – term.

Exercise of control

Exclusively by top management, may be through lower level support.

Mainly by executive or middle management on the direction of top management.

Main techniques

Environmental scanning, information gathering, questioning and review.

Budgets, schedules.

BASED ON STAGE AT WHICH CONTROL CAN BE EXERCISED1. FEEDFORWARD CONTROL

• Control of inputs that are required in an action.

• Evaluation of inputs and taking corrective measures

before a particular sequence of operation is completed.

• Attempts to remove the limitations of time lag.

• Monitors inputs into a process to determine whether the

inputs are as planned or not.

• Analogous to hunting a duck.

2. CONCURRENT CONTROL

• Exercised during the operation of the program.

• Provides measures for taking corrective action or making

adjustments while the program is still in operation and before

any major damage is done.

• E.g. Quality control during the operation, safety check in a

factory.

• Focus is on the process itself.

• Data provided by this control system is used to adjust the

process.

3. FEEDBACK CONTROL

• Based on the measurement of the results of an action.

• Based on the above, if any deviation between performance standards

and actual performance is found, then corrective action is undertaken.

• Sometimes, feed-forward or concurrent control is not possible to apply.

E.g. Personal characteristics of an individual which go into behavioural

processes are not measurable.

• Top management control is mostly based on feedback.

• To make feedback control effective, it is essential that corrective action

is taken as soon as possible.

STAGES OF CONTROL

FEEDFORWARD CONTROL

CONCURRENT CONTROL

INPUTS PROCESSING OUTPUTS

FEEDBACK CONTROL

CONTROLLING AND MANAGEMENT BY EXCEPTION• The important ways of tailoring controls for efficiency

and effective ness is to make them without pointing out

of exception.

• In the other words, by concentrating on exceptions

from planned performance, and time honored exception

will lead managers to frame effective controlling in the

organization.

MANAGEMENT BY EXCEPTION• Management by exception constitutes of six basic

ingredients. They are

1. MEASUREMENT

2. PROJECTION

3. SELECTION

4. OBSERVATION

5. COMPARISION

6. DECISION MAKING

MANAGENT BY EXCEPTION

•MEASUREMENT :- assigns values to past and present

performance.This is to identify an exception.

• PROJECTION :- analyze the measurements and turns

them out into future expectations.

• SELECTION :- Involves the criteria which management

will use to progress towards organizational objectives.

MANAGEMNT BY EXCEPTION

• OBSERVATION :- involves measurement of current

performance

• COMPARISION :- makes comparison of actual and

planned performance and identifies the exceptions that

require attention and reports the variances to

management.

• DECISION MAKING :- prescribes the action that must

be taken in order to bring performance back into control.

To adjust exceptions to reflect changing conditions. To

exploit opportunities.

BENEFITS OF MANAGEMENT BY EXCEPTION• Saves time

• Concentrates on executives efforts on major problems.

• Better delegation authority,

increases span of management and provides better opportunities for self motivated personnel.

• Makes use of trends, history and available business data.

• Identifies crisis and avoids uninformed,

impulsive pushing of panic button.

• It provides qualitative and quantitative yard sticks for judging people and situations.

• It helps in performance appraisal.

• It enhances the degree of communication between different segments of organization.

QUALITY CONTROLQUALITY – a SENSE OF APPRECIATION that SOMETHING IS BETTER THAN SOMETHING else

It changes in a LIFETIME, and it changes from GENERATION TO GENERATION, and it varies by facets of HUMAN ACTIVITY

Operational point of view

QUALITY means focusing on the PRODUCTION of increasingly BETTER PRODUCTS AND SERVICES at progressively more COMPETITIVE PRICES

TOTAL QUALITY MANAGEMENT

(TQM)• FIEGANBAUM’S DEFINITION :- Total composite of product and

service characteristics of marketing, engineering, manufacturing,

maintenance through which the product and service induced will

meet the expectations of the customers.

• INDIAN STATISTICAL INSTITUTE’S DEFINITION:- TQM is an

integrated organizational approach in delighting customers(both

external and internal) by meeting their expectations on a

continuous basis through everyone involved with the organization

working on continuous improvement in all products, services and

processes along with proper problem solving methodology.

PROCESSES OF TQM• QUALITY PROCESS :- involves the understanding of who the customer is, what is his needs, how are they satisfied.

• CONTINUOUS IMPROVEMENT:- It is a continuous process of improving product quality and its delivery. It comprises of plan-to-check-do-check-act(PDCA).

Evolving policiesObjectives and methods to achieve goalsTraining to employeesImplementationChecking causes for low quality.Taking appropriate actionPreventing recurrence.

• PEOPLE PROCESS :- Deals with initiating and maintaining

TQM. Involves employee in three steps. Intellectual

honesty. Self-control. Respect for others.

• PROBLEMS AGAINST TQM

ORGANIZATIONAL BARRIERS. LACK OF SUPPORT

ATTUDINAL BARRIERS. ATTITUDE TOWARDS TRAINING,

MANAGEMENT STYLES, APPROACH TOWARDS QUALITY.

SUMMARY

• TYPES OF CONTROL

• CONTROLLING AND MANAGEMENT BY EXCEPTION

• BENEFITS OF MANAGEMENT BY EXCEPTION

• QUALITY CONTROL

• TOTAL QUALITY MANAGEMNT