controlling (shiva
TRANSCRIPT
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CONTAINS:-
Definition of control
Need of control
Types of Control
Steps in a control process Control Techniques
Problems in the Control process
The Planning-Controlling Link
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DEFINITIONOFCONTROL
-Is the process of monitoring activities to ensure that theyare being accomplished as planned and of correcting any
significant deviations
In the words of E.F.L. Brech, Control is checking current
performance against predetermined standards contained in
the plan, with a view to ensuring that adequate progress
and satisfactory performance.
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DEFINITION CONTD.
In the words of George R Terry, Controlling is
determining what is being accomplished, that theperformance takes place according to plans.
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NEEDFORCONTROL
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1. To measure progress:-
control process measure progress toward goals
2. To uncover deviations :-
Major events which tends to pull an organization offtarget are as follows:
Change
Objective and comprehensible
Flexible
Economic Prescriptive and operational
Acceptable to organization members
Reveal exceptions at strategic points
Motivate people to high performance
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TYPESOF CONTROL
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1. Feedforward Control:-
A type of control that focuses on preventing anticipated problems
since it takes place in advance of the actual work activity.
Taking managerial action before a problem occurs.
Feedforward controls are desirable because they allow manager to
prevent problems rather than having to correct them later after the
damage.
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TYPESCONTD..
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2. Concurrent Control:-
A types of control that takes place while a work activity is inprogress
Manager can correct problems before they become too
costly
3. Feedback Control:-
A types of control that takes place after a work activity is
done.
Major drawback of feedback control is that by the time themanager has the information, the problems have already
occurred and led to waste or damage.
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STEPSINACONTROLPROCESS
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1. Establishing Standards
Standard tends of following types:-
Physical Standards,
Cost standards,
Revenue standards,
Capital standards andIntangible standards
- First step in control process is to established
standards against which result can be measured.
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STEPSCONTD.
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2. Measuring and Comparing Actual results Against
Standards:-
- Second step in the controlling process is to measure the
performance and compare it with the predetermined
standards.
3. Taking corrective action:-
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CONTROLTECHNIQUES
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Old control techniques
Budgeting
Sales Budgets
Selling and Distributing Budget
Capital Expenditure Budget
production Budget
Cash Budget
Master Budgets
Production Cost Budget
- Preparation of budget is, in effect, the step of establishing
standards
Types of Budgets:
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Standard Costing
Standard Costing s the one of the techniques of cost control and it isbeing increasingly used by modern business concerns for the purpose
of the cost reduction and control.
CONTROLLINGTECHNIQUESCONTD
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markup on actual cost
System of accounting under which each departmental head is main
responsible for the performance of his department
Markup on standard cost
Negotiated prices
Market prices
Responsibility Accounting
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CONTROLLINGTECHNIQUESCONTD
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Financial Statement and Ration Analysis
The ratios most commonly used by organization are as follows
Liquidity ratios
Debt ratios
Profitable ratios
Operating ratios
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CONTROLLINGTECHNIQUESCONTD
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Returns on investment
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CONTROLLINGTECHNIQUESCONTD
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Internal and External Audit
Top Management
sale
Internal and External Audit
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PROBLEMSINTHECONTROLPROCESS
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1. Magnitude of change
2. Time rate of change
5. Workers, Resistance
4. Erroneous Standards
3. Information overload
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THE PLANNING AND CONTROLLING LINKS
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