IMPORTANT NOTES SECTION - A FORMS OF BUSINESS ORGNIZATIONExplain various

form of business organization.

Form of business organization:-

1. NON-GOVERNMENT concerns

2. GOVERNMENT or SEMI-GOVERNMENT concern

1. NON-GOVERNMENT concern

• Sole Trading or Sole Proprietorship

• Partnership

• Joint Hindu Family

• Joint Stock Company

• Co-operative Society

2. GOVERNMENT or SEMI-GOVERNMENT concern

• Departmental Undertakings - Indian railway

• Public Corporations - RBI

• Government Company - BHEL

• Board Organization - Joint organization

SOLE PROPRIETORSHIP

What is sole Proprietorship? Explain features, Advantages and

Disadvantages.

"A sole trader is a person who carries on businessexclusively by and for himself. He is not only

the owner of capital of the undertaking.But is usually the organizer and manager and takes all

the profits or responsibility for losses."

FEATURES or CHARACTERSITICS of SOLE PROPRIETORSHIP:-

• Sole owner

• Capital contribution by one man

• No separate legal existence

• One-man management and control

• Unlimited liability

• Limited area of activities

• Ownership and risk go side by side

• No legal formalities

• Easy to start and dissolve

• Freedom of line of business

ADVANTAGES OF SOLE PROPRIETORSHIP:-

• Simple to form and work

• Secrecy of business

• Flexibility in operation

• Quick decision

• Sole claim on profits

• Free form legal restrictions

• Effective management and control

• Personnel relations with customers

• Harmonious relations with Employees

• Reduction in cost of production

• Way of life

• Development of personnel qualities

• inherited goodwill

• Tax advantages

• National importance

• Ease of dissolution

DISADVANTAGES OF SOLE PROPRIETORSHIP:-

• Unlimited liability

• Limited Financial Resources

• Uncertainty of duration

• Limited managerial ability

• Restricted growth

• Singleness of responsibility

• Limited opportunities of employees

• Change of wrong decision

• Absence of owner not tolerated

• Secrecy leads to suspicion

• No bargaining power

• Monotony and hard work

• Passing into incompetent-hands

PARTNERSHIP

Q. What is partnership?Explain features,Advantages and

Disadvantages.

"The relation existing between persons competent to make contracts, who agree to carry on a

lawful business in common with a view to private gain." ELEMENTS or FEATURES or CHARACTERSITICS of PARTNERSHIP:-

• Existence of Business

• Number of persons

• Contractual relationship

• Sharing of profits

• Agency

• Utmost good faith

• Unlimited liability

• Restrictions on transfer of interest

• Capital contribution

• Durationof the partnership

ADVANTAGES of PARTNERSHIP:-

• Easy formation

• Largefinancial resources

• Better managerial talent

• Flexibility

• Promptness in decision-making

• Division of labor

• Lesser risk

• Possibilities of expansion and growth

• Protection of minority interest

• Secrecy

• Incentives for hard work

DISADVANTAGES OF PARTNERSHIP:-

• Limited finances

• Uncertain existence

• Dishonesty of partners

• Unlimited liability

• Lesser Public confidence

• Limited managerial talent

• Restrictions on transfer or interest

• Risks of implied authority of partners

Q. What is partnership? Explain kinds of partnership and partnership

deed or agreement.

"The relation between persons who have agreed to share profits of a business carried on by all

or any of them acting for all."

KINDS OF PARTNERSHIP:-

1. GENERAL Partnership: - a. Partnership at will

b. Particular partnership.

2. LIMITED Partnership

PARTNERSHIP DEED OR AGREEMENT:-

Document containing all matters according to which mutual RIGHTS, DUTIES and LIABILITIES of

the partners in the conduct and management of the affairs of the firm is determined.

CONTENTS OF PARTNERSHIP DEED or AGREEMENT:-

• The name of the FIRM.

• The names and address of all the partners.

• The nature of the business to be carried by the FIRM.

• The amount of capital to be contributed by each partner.

• The duration of partner, if any.

• The amount which can be withdrawn by each partner.

• The ratio of distribution of profits and losses among the partners.

• The rate of interest on capital and drawings made by the partners.

• The amount of compensation or salary payable to any partner for his services rendered

to the firm.

• The mutual rights and dutiesof partners.

• Maintenance and audit of books of accounts.

• The loans and advance made by the partners to the firm and the rate of interest payable

on them.

• The mode of valuation of goodwill on admission, retirement and on death of a partner.

• The procedure of dissolution and mode of settlement of accounts among the partners

after dissolution.

• Arrangement in case a partner becomes insolvent.

JOINT STOCK COMPANY

Q. What is Joint Stock Company? Explain features, Advantages and

Disadvantages.

"It is a voluntary association of individuals, for profits having capital dividend into transferable

shares, the ownership of which a condition of membership."

FEATURES or CHARACTERSITICS of JOINT STOCK COMPANY:-

• A company is an association of persons.

• The association of persons must be incorporated.

• Artificial legal persons.

• Distinct legal entity.

• Continuous Existence.

• Limited Liability.

• Transferability of shares.

• Diffused ownership.

• Separation of ownership and management.

• Common Seal.

• Corporative Finance.

• Business.

• Centralized and Delegated Management.

• Publication of Accounts.

ADVANTAGES OF JOINT STOCK COMPANY:-

• Permanent Existence.

• Limited Liability.

• Transferability of shares.

• Availability of Large Resources.

• Better Management.

• Economics of scale.

• Ability to cope up with the changing Business Environment.

• Diffusion of risk.

• Scope for Expansion.

• Greater Public Confidence.

• Better use of Economic Resources.

• Democratic Organization.

• Social Benefits.

• Statutory Regulation.

DISADVANTAGES OF JOINT STOCK COMPANY:-

• Lack of Personnel Interest.

• Difficulty of formation.

• Lack of secrecy.

• Chances of fraud by Directors.

• Ineffectiveness of the shareholders.

• Excessive Regulation.

• Conflict of interest.

• Encouragement to speculation.

• Grouping the power.

• Evils form the social point of view.

PUBLIC ENTERPRISES AND PUBLIC UTILITIES

What are Public Enterprises? Explain features, Advantages and

Disadvantages.

"Public enterprises mean state ownership of operation of industrial, agricultural, financial, and

commercial undertaking."

FEATURES or CHARACTERSITICS of PUBLIC ENTERPRISES:-

• Financed by the government.

• Management by government.

• Financial Independence.

• Public Services.

• Useful to all.

• Monopoly Enterprises.

• Direct channel to use foreign funds.

• Helpful for execution of government plans.

• Undertake Strategic Projects.

ADVANTAGES OF PUBLICENTERPRISES:-

• Charges low prices.

• Provide essential facilities like education, health, free or at reduced prices.

• Ensures efficient control of industry.

• Expert administrative services.

• Money can be made available for R&D.

• Private monopoly which would cause high prices is avoided.

• Foreign denominations of the economy are avoided.

DISADVANTAGES OF PUBLIC ENTERPRISES:- • Government must bear losses or this could lead to higher taxation.

• Consumers’ choice is restricted to the state if the business is a monopoly.

• Regulations may be passed to curb the progress of private business.

• Lack of competition may lead to inefficiency and higher prices.

• Government interference.

• Don’t care attitude.

• Political pressure.

• Corruption and embezzlement of funds.

• Foreign investment may be discouraged due to fear of nationalization.

NATURE, IMPORTANCE AND SCOPE OF

MANAGEMENTwhat is Management? Explain nature and function

of management.

"Management is the process of reaching organizational goals by working with and through people and other organizational resources."

NATURE OF MANAGEMENT:-

• Management as a PROCESS: - Management is a process which includes all the activities--starting from the setting up of objectives of business enterprises to the taking up of steps which ensure the attainment of these objectives.

FEATURES OF MANAGEMENT AS A PROCESS:-

1. Continuous process.

2. Integrating process.

3. Social process.

4. Universal process

5. Interactive process.

• MANAGEMENT AS A GROUP: - management as a group refers to those who carry the activities of management.

FEATURES OF MANAGEMENT AS A GROUP:-

1. It comprises persons right from chief execution to the supervisor, who have been assigned managerial duties.

2. It refers to TOP MANAGEMENT only.

• MANAGEMENT AS DISCIPLINE: - MANAGEMENT has been done developed as a full-fledged discipline in the due course of time. Itincludes the specialized functional courses - "FINANCIAL management”, “PERSONNELmanagement”, “MARKETING management".

FEATURES OF MANAGEMENT AS DISCIPLINE:-

1. It is organized body of knowledge.

2. It can be learnt through teaching and training.

3. Its study produces qualified professionals.

• MANAGEMENT AS ACTIVITY:-The functional aspect of management is to organize the human and the material resources to achieve the objectives of the enterprises. In this process, the managers have to perform many activities.

These activities are:-

• COMMUNICATION

• DECISION MAKING

• HUMAN RELATIONS.

Discuss the levels of management.

"Levelsof management refer to a line of demarcation between various managerial position in

an organization."

-TOP management. -MIDDLE management. -LOWER management. TOP MANAGEMENT: -Owners or shareholder, Boardof Director, Managing Director or

General Manager, or Executive Committee.

MIDDLELEVELMANAGEMENT: - a. Department Managers or Section Officers

• PRODUCTION

• SALES

• PURCHASES

• PERSONNEL

• FINANCE

LOWER LEVELMANAGEMENT: - Superintendents, foremen and Supervisor.

PLANNING -NATURE, OBJECTIVES TYPES AND PROCESS

Q. What is planning? What is Nature AND purpose ofPlanning?

“Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.”

NATURE OR CHARACTERISTICS OF PLANNING: -

Planning is primary function of management.

Planning focuses on objectives.

Planning is a function of all managers.

Planning is an intellectual process.

Planning is a continuous process.

Planning is dynamic (flexible).

Planning secures efficiency, economy and accuracy.

Planning involves forecasting.

Planning and Limited factors.

Planning is realistic.

NEED, OBJECTIVES OR PURPOSE, IMPORTANCE OR SIGNIFICANCE OR

ADVANTAGES OR FUNCTIONS OF PLANNING:-

Achievement of objectives.

Planning avoids haphazard actions.

Planning minimizes future uncertainties.

Planning brings economy in operations.

Planning facilitates control.

Planning and technological development.

Planning helps in proper utilization of resources.

Achieves co-ordination.

Make Management by exception possible.

Q. What is planning? Discuss the steps in planning process?

“Planning is fundamentally choosing and a planning problem arises only when an alternative

course of action is discovered.”

Steps in planning process:-

Determination of objectives.

Determining planning premises or limitations.

Collection, analysis and classification.

Searching for alternative courses.

Evaluating alternative course of action.

Selecting the best alternatives.

Formation of derivative plans.

Communication of plans.

Controlling the plans.

DECISION-MAKING -IMPORTANCE, TYPES, PROCESS,

AND APPROACHES

What is Decision-making? Explain the Decision-making process?

“Decision-making is the selection based on some criteria from two or more possible

alternatives.”

Decision-making process:-

Define the problem.

Analyzing the problem.

Developing alternative solutions or course of actions.

Selection of the best type of alternative.

Putting the decision into action or execution of the decision.

Follow up.

Monitoring and feedback.

Q. Discuss the strategic, tactical & operational decision?

STRATEGIC DECISION: - These are important which affect objectives, organizational goals and

other important policy matters.

- Strategic refers to the - “what and the why”.

- Strategic plans involve the vision, the mission, the guiding principles and the goals for the

business.

- To achieve LONG TERM (8-10 years) goals.

TACTICAL DECISION: - The primary goal of tactical decision making in an organization is to

ensure success. This encapsulates more than productivity, and even more than profitability,

which really are operational and transactional concerns.

- To achieve 1 -2 years goals.

OPERATIONAL DECISION: - Decisionsinvolveroutine tasks, such as planning production and

sales.

- To achieve SHORT TERM (5-6 months) goals.

- Operational decision is administrative process.

ORGANISATION -NATURE, IMPORTANCE, OBJECTIVES,

AND PROCESS

Q. What is organization? Discuss its Nature and importance?

“A group of people who are co-operating under the direction of leadership for the

accomplishment of a common end”

NATURE OF ORGANISATION:-

Organization as a process.

Organization as a structure or framework of relationship.

ORGANIZATION AS A PROCESS:-

Division of work.

Grouping of inter-related activities.

Assigning duties to persons with requisite competence.

Delegating authority.

Coordinating the efforts of different persons and groups.

Determining activities necessary for the accomplishment of the business

objectives.

ORGANIZATION AS A STRUCTURE:-

As structure, organization is a network of internal authority and responsibility

relationships.

It is the framework 0f relationships of persons, operating at various levels, to accomplish

Common objectives

IMPORTANCE OF ORGANIZATION:

It facilitates administration.

It promotes growth & diversification.

It fasters co-ordination.

It provides optimum use of technological innovation.

It enhances productivity.

Optimum use of human resources.

It provides scope for training & development.

Q. Discuss organization process?

Organization process:-

Define activities.

Assigning duties.

Delegating authority.

Coordinating activities.

Providing right environment.

Establishment of structural relationship for overall control.

Q. What is organization objective? Differentiate between formal &

informal organization?

“A purpose refers to commitment to desired future objectives.”

FORMAL ORGANISATION: - “An organization is formed when two or more persons are

consciously co-ordinated towards a common objective”

INFORMAL ORGANISATION: -“Informal organization is a joint personal activity without a

conscious joint purpose, even though possibly contributing to joint results”.

---------DIFFERENCE BETWEEN FORMAL ORGNISATION AND INFORMAL ORGNISATION----------

FORMATION: -

BASIS

NATURE

SET UP

EMPHASIS

AUTHORITY

EXISTENCE

RATIONALITY

DEPICTION

DEPARTMENTATION

Q. Define Depart mentation? Discuss its Types?

“It is a process of directing the large monolithic functional organization into smaller and flexible

administrative units”.

Types of depart mentation:-

Depart mentation by function :- SHAREHOLDER

BOARD OF DIRECTORS

CHIEF EXECUTIVE

Production mgr. Purchase mgr. Personnel mgr. Financial mgr.Marketing mgr.

Chief engineer Works & MethodsAdvertisement mgr.sales promotion mgr. Sales mgr.

Study manager Maintenance mgr.

Quality control mgr.Marketing research mgr.Productplanning mgr.

Depart mentation by product :- SHAREHOLDER

BOARD OF DIRECTORS

CHIEF EXECUTIVE

Finance Personnel Manufacturing Marketing

Metal product Division Plastic Product Division

Personnel Accounting Personnel Accounting

Manufacturing Marketing Manufacturing Marketing

Depart mentation by Territory:- SHAREHOLDER

BOARD OF DIRECTORS

Finance Personnel Manufacturing Marketing

WESTERN REGION MANAGER EASTERN REGION MANAGER

Personnel Accounting Personnel Accounting

Manufacturing Marketing Manufacturing Marketing

Depart mentation by Customer or markets :- SHAREHOLDER

BOARD OF DIRECTORS

GENERAL MANAGER

Wholesale trade dept. Retail trade dept. Export trade dept.

Depart mentation by Process:-

SHAREHOLDER

BOARD OF DIRECTORS

GENERAL MANAGER

Spinning dept. Weaving dept. Dyeing and printing dept. Packing dept.

Depart mentationby equipment:- In some enterprises the equipment used determines

Major sub-division. Very often it is identical with Depart mentation by process.

Depart mentation by time :- Division of work may be based on time sequence with the

Work broken down under the categories of planning,

execution and control. The second major division would be devoted to the execution of

the plans and would correspond roughly to the major operating group in a business. The

third major division is devoted to the control of the results of execution in the light of

the objectives and plans of the business.

Depart mentation by matrix :-

Depart mentation on the basis of function

GENERAL MANAGER

Purchase Manufacturing FinanceResearch & developing

Manager Manager Manager Manager

Manager Purchase Manufacturing Finance Research & developing

project X Officer Officer Officer Officer

Manager Purchase Manufacturing Finance Research & developing

project Y Officer Officer Officer Officer

Manager Purchase Manufacturing Finance Research & developing

project Z Officer Officer Officer Officer

Depart mentation on the basis of product or project

AUTHORITY, RESPONSIBILITY AND DELEGATION OF

AUTHORITY

Q. What is Authority? Explain importance and steps of authority.

“Authority is the right to decide, the power to act, to carry out decisions.”

IMPORTANCE OF AUTHORITY:-

Effective Management.

Employee Development.

Motivation of Employees.

Facilitation of growth.

Basis of management hierarchy.

Better Co-ordination.

Leads to quick and better decisions.

Continuity in organization.

STEPS IN AUTHORITY:-

Assignment of duties.

Granting authority to perform the duty.

Creation of an obligation.

CENTRALISATION AND DECENTRALISATION

Q. Centralization vs. decentralization

Basis of Difference Centralization Decentralization

1. Meaning It is systematic reservation of authority at central points.

The delegation of decision making Authority at all levels of organization.

2. Nature Unity of purpose is promoted. Freedom of operation is promoted.

3. Uniformity It brings uniformity in policies and plans.

It may lead to inconsistencies because uniform procedures are not followed in different departments.

4. Suitability It is suitable for a small organization.

It is appropriate for a large organization.

5. Cost It involves low cost because only few official manage the whole business.

Higher cost is involved because the whole organization is divided into self-sufficient departments.

6. Trained and professional managers.

Only few trained and professional at the top management level only.

A large number are required as every department is controlled by independent manager.

STAFFING –CONCEPT, NATURE AND IMPORTANCE

Q. What is Staffing? Explain the Staffing process?

“Staffing as the executive function which involves the recruitment, selection compensating,

training, Promotion and retirement of subordinate managers.”

STAFFING PROCESS:-

Manpower Planning.

Recruitment.

Selection

Placement.

Training.

Development.

Promotion.

Transfer.

Appraisal.

Determination of remuneration.

MENPOWER MANAGEMENT (PLANNING)

Q. Define manpower management. Discuss its objectives and job

specification.

“Manpower planning is the process including forecasting, developing and controlling by which a

firm ensues that it has the right number of people and right kind of people at the right place at

the right time doing work which they are economically most useful.”

OBJECTIVES OF MANPOWER MANAGEMENT:-

Accurate estimates of manpower requirements.

Inventorying of personnel.

Helpful in recruitment and selection.

Achieving and maintaining production level.

JOB SPECIFICATION: -It refers to learn qualities required to perform a job.

It includes:-

Educational qualifications.

Experience.

Training.

Initiative and motivation.

Unusual demands of the job.

Psychological characteristics.

Physical characteristics.

Personal traits.

Responsibilities.

RECRUITMENT

Q. Define recruitment. Discuss sources of recruitment.

“Recruitment forms the first stage in the process which continues with selection and ceases

with the placement of the candidates.”

Sources of recruitment:-

Sources of Recruitment

Internal External

1. Transfers 1. Advertisement

2. Promotions 2. Employment Exchanges.

3. Present employees. 3. Educational Institutions.

4. Recommendations of existing employees

5. Factory gates.

6. Casual Callers.

7. Central application files. (data banks)

8. Labor unions.

9. Labor contractors.

10. Former employees.

SELECTION

Q. Define selection. Explain the selection process.

“Selection is a higher process of one or many go, no go gauges; candidate screened by the

application of these tools.”

Selection process:-

1. Reception of applicants.

2. Scrutiny of application.

3. Preliminary interview.

4. Application blank.

5. Employment tests.

6. Interview.

7. Checking references.

8. Approval of the supervisor.

9. Physical examination.

10. Selection, placement and orientation.

11. Induction.

MOTIVATION

Q. Define motivation. Also explain Theories of motivation.

“Motivation can be defined as a willingness to expand energy, to achieve a goal or a reward.”

Theories of motivation:-

1. Physiological needs.

2. Safety needs.

3. Social needs.

4. Esteem needs.

5. Self-actualization needs.

Maslow’s need hierarchy theory emphasizes three basic ingredients:-

- A man is a social animal and he always wants more and more. His needs are of many

types.

- There is a hierarchy of the occurrence of these needs i.e.. These needs are arranged in

a series of preference. After the lower level needs are satisfied, the needs at the higher

level take their place. A man whose stomach is satisfied becomes conscious of other

needs.

- A Satisfied need can never work as a motivator. Only those needs which are not satisfied

act as a motivator for influencing needs which are not satisfied act as a motivator for

influencing the human behavior.

Theory X-Assumptions:- 1. The ordinary man is not interested in work and he is lazy, passive and tries to

avoid the work.

2. In the absence of direction and control, members of the organization will not

work out relations among their positions.

3. The individual and organizational goals are different.

4. Average man is devoid of self-discipline and self-control and wishes to avoid

responsibility.

5. Average man tends to submit himself to the control and direction of others.

6. The members of the organization prefer security above all.

Theory Y-Assumptions:-

1. The average human being does not dislike the work. Work is , in fact, a source of

satisfaction and an employee will perform it voluntarily or consider it a source of

punishment in which case he will try to avoid it.

2. Man will exercise self-control and self-direction.

3. Commitment to enterprise objectives is a result of rewards associated with their

achievement. People select goals for themselves when they find that their efforts are

being rewarded.

4. The average individuals not only accept responsibility but seek it. Avoidance of

responsibility isnot inherent in the characteristics of human beings.

5. The capacity of exercising a relatively high degree of imagination ingenuity, and

creativity in the solution of organizational problems is widely, distributed in the

population.

6. Under conditions of modern industrial life intellectual potentialities of people are only

partially utilized. Human begins have unlimited potentialities.

COMPARISION BETWEEN THEORY X AND THEORY Y.

Comparison Theory x Theory y

I. communication one way Two way

II. planning top level management Involvement of all

III. Decision-making At top level Involvement of all

IV. Management Autocratic Democratic

V. Delegation and decentralization

Minimum Maximum

VI. Direction and control Form the top Self-control

VII. Assumption regarding people

Dislike work Like work

VIII. Assumption regarding responsibility

Dislike responsibility Accept and seek responsibility

IX. Response to change Resistant of change. They recognize and accept change

X. Creativity Assumption People lack creativity. They process creative potential

LEADERSHIP

Q. What is Leadership? Explain importance and Qualities for effective

leadership.

“Leadership is concerned with influencing the activities of an individuals or a group for the

achievement of a goal in a given situation.

IMPORATANCE OF LEADERSHIP:-

It motivates employees.

It creates confidence.

It boosts morale

QUALITIES FOR EFFECTIVE LEADERSHIP:-

Effective leadership

Personal traits Managerial traits

I. Dynamic personality. I. Technical knowledge.

II. Intellectual capacity. II. Organizing ability.

III. Initiative. III. Ability to deal with people.

IV. Foresight. IV. Ability to judge and decide promptly

V. Emotional stability.

VI. Flexibility.

VII. Sense of responsibility.

VIII. Character.

STYLES OF LEADERSHIP:-

THE AUTOMETIC STYLE:- {AL – Represents Autocratic leader}

AL {S – Represents Subordinates}

S S S S SSSS

THE PARTICIPATIVE STYLE:-

DL

S S S S S S S S

DL- Represents Democratic leader.

S – Represents Subordinates.

LAISSEZ-FAIRE STYLE:-

LFL

S S S S SSSS

LFL- Represents Laissez-Faire Leader ; S - Represents Subordinates.

THE PATERNALISTIC STYLE:-

Paternalism has at times been equated with leadership style.

Explain theories of leadership and managerial grid.

Trait theory:-

- Intelligence.

- Personality.

- Other quality.

Situation theory :-

- Leader-member relations.

- Task structure.

- Power position.

Q. Managerial grid:-

“Managerial grid is the result of massive practical research into the behavioral sciences in

organizational development.”

Diagram:

9 country club team 9, 9

8

7

6 5,5

5 Middle road

4

3

2

1 Impoverished 1, 1 team 9,1

1 2 3 4 5 6 7 8 9

Concern for production

Low High

Concern for people

Low High

THE FIVE STYLES DECRIBE BY BLAKE AND MOUTON ARE:-

Impoverished

Country club

Task

Team

Middle road

NATURE AND PROCESS OF CONTROL

Q. What is control? Explain the various characteristics of managerial

control.

“Control is the process of checking determine whether or not, proper progress is being made

towards the objectives and goals and acting if necessary to correct the deviations.”

Characteristics of Managerial control:-

Important managerial function.

Continuous process.

Mechanism

Dynamic process.

Forward-looking.

Action oriented.

Co-ordinate-integrated.

Economical.

Must Report deviations quickly.

Motivating.

What are the objectives of control?

- To find out what is happening or what has actually happened in the enterprise;

- To assure that the work is performed according to the , pre-determined standards,

and the desired results are achieved;

- To increase the efficiency ofoperation by minimizing irrelevant & wasteful actions;

- To decide the corrective actions, if any, needed for the attainment of goals with a

minimum of time, effort and expense; and

- To co-ordinate different activities and effort.

State the steps in the control process.

Desired level of Measurement and Identification of

Performance evaluation of actual deviation by comparing

Performance actual and standard

Implementing Planning corrective Analyzing causes of

Corrections actions deviations

Flexing standards.

Measurement of actual performance.

Comparing actual and standard performance.

Taking corrective action.

Discuss the essentials of an effective control system.

Suitability. Simplicity. Objectivity. Economical. Flexibility. Quick reporting. Suggestive. Forward-looking. Individual responsibility. Strategic point control.

Self-control. Feedback.

THE END…..