suman and sunny
TRANSCRIPT
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Prepared By: Suman Singla
Sunny Singla
Controlling
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Traffic Lights: A System of Control
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What is control?
“Control refers to the task of ensuring thatactivities are producing the desired results.Control in this sense is limited to monitoring
the outcome of activities, reviewing feedback information about this outcome, and if necessary, taking corrective action.”
-Reeves & Woodward
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Control Areas
Control over Policies
Control over Organizational Structure
Control over Personnel
Control over Wages and Salaries
Control over Costs
Control over Methods and Manpower
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Continued…
Control over Capital Expenditure
Control over Service Departments
Control over Line of Product
Control over R&D
Overall Control
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Control Process
Actual
Performance
Measurement
of Performance
Comparison
of Actual &
Standard
Identification
of deviation
DesiredPerformance
Implementationof corrections
Correctiveaction plan
Analysis of causes of
deviation
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How this Process of Control Works
Objectives
Measure
Actual
Performance
Correct
Performance
Identify
Cause of
Variation
Do
Nothing
Do
Nothing
Standards
Compare
ActualPerformance
With Standards
Is Standard
Being Attained
Is Variance
Acceptable
Is Standard
Acceptable
Revise
Standard
No
No
No
Yes
Yes
Yes
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Types of Control
Strategic Control and Operational Control
Stages of Control Feedforward Control
Concurrent Control
Feedback Control
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Factors Strategic Control Operational Control
1. BasicQuestion
Are we moving in rightdirection
How are we performing?
2. Aim Proactive, continuousquestioning of the basicdirection of Strategy
Allocation and use of Organizational resources
3. Main
Concerns
Steering the future
direction of theorganization
Action control
4. Focus External environment Internal organization
5. TimeHorizon
Long Term Short Term
6. Exercise of Control
Exclusively by topmanagement
Mainly by executives andmiddle management
7. MainTechnique
Environmental scanning,information gathering,
questioning and review
Budgets, schedules
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Stages of Control
Feedforward
Control
Concurrent
Control
Inputs Processing
Feedback
Control
Outputs
Flow of InformationCorrective Action
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Control Techniques
Financial Control
Operational Control
Inventory Control
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Financial Control
Budgetary Control
Control through Costing
Break Even Analysis Financial Ratio Analysis
Responsibility
Accounting
Internal Audit
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Operating Control
Quality control
TQM
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Inventory Control
ABC Analysis
Economic orderquantity
PERT/CPM
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