Control Controlling is determining what is being accomplished

Control • Controlling is determining what is being accomplished, that is , evaluating the performance and , if necessary , applying corrective measures so that the performance takes place according to plans. It means control is the process that measures current performances and guides them towards some predetermined objectives.

Features of Control • • • Control is a positive force Control is a continuous process Control is forward looking Control process is universal Control process is dynamic Control is based on planning

Importance of control • • • Achievement of goals Execution and revision of plans Brings order and discipline Facilitates decentralization of authority Promotes coordination Cope with uncertainty and change

Steps of control Establishment Of standards Measurement of Actual performance Comparison of Actual performance With the standards Feedback Corrective Action where required

Steps of control (cont. ) • Establishment of standards: a) Quantitative standard: - Time standard Cost standard Productivity standard Revenue standards

Steps of control (cont. ) b) Qualitative standard c) How to set the standards : a) Before setting the standard , an executive must study the characteristics of the work. b) Executives must consider ordinarily flexible and generally acceptable levels of good performance in terms of work characteristics c) As the nature of work differs with every operation, the characteristics are different and so are the standards. d) Standards are set, thus, depending on the characteristics of the task.

Steps of control (cont. ) • Measurement of actual performance: 1) what to measure 2) How to measure 3) How to solve the problem of measurement in less technical and qualitative job? 4) The techniques of measurement: - a) Personal observation b) Sampling c) Managerial accounting and computer science

Steps of control (cont. ) • 5)When to measure: Standards Measurement Feedback Adjustment Performance • Comparison of actual performance with standards. • Taking corrective action.

Types of control • Feed forward or Predictive control • Concurrent control • Feedback control

Types of control (cont. ) • Feed forward Control – prevents anticipated problems – most desirable type of control – requires timely and accurate information that often is difficult to get • Concurrent Control – takes place while activity is in progress – corrects problem before it becomes too costly – best-known form is direct supervision

Types of control (cont. ) • Feedback control : -- takes place after the activity is done -- problems may already have caused damage or waste ---- the most popular type of control feedback may be only viable form of control available feedback has two advantages: • provides meaningful information on the effectiveness of planning • can enhance employee motivation

Types Of Control Input Processes Output Feedforward Control Concurrent Control Feedback Control Anticipates problems Corrects problems as they happen Corrects problems after they occur

Principles or Guidelines for developing an effective control system • Controls should be based on objective and plans • Controls must be understandable • Controls must be flexible • Controls must be economical • Controls must be timely • Controls must be objective

Principles or Guidelines for developing an effective control system (cont. ) • • Controls should be forward looking Controls should be selective Controls should aim at corrective action Controls should reflect the organization structure and needs