Presented by: Jehanwash kareem

1
Controlling
The regulation of organizational activities so
that some Targeted element of performance
remains within acceptable Limits Griffin Contr
olling is the measurement and correction of
performance In order to make sure that enterprise
objectives and the plans Devised to attain them
are being accomplished Koontz Controlling is
the process of ensuring that actual
activities Conform to planned activities Greenber
g All activities that manager undertakes in
attempting to ensure That actual results conform
to planned results Gibbson
2
Why control is necessary
To create Better Quality
Limiting the Accumulation Of error
Adapting to Environmental Change
Need For Control
To create Faster Cycles
To facilitate Delegatio And Teamwork
Coping with Organizational Complexity
Minimizing Costs
3
Basic control process
Does Performance Match the Standard?
Take Corrective Action And Reevaluate Standards
No
Establish standards Methods for Measuring
Performance
Measure Performance
Yes
Maintain the Status quo
4
Forms of operations control
Feed back
Output
Transformation
Input
Screening control
Postaction control
Preliminary control
Focus is on Outputs for the Organizational
Systems
Focus is on Inputs to the Organizational System
Focus is on How inputs are Being
transformed Into outputs
5
Types of critical point standards
Physical standards
They may reelect quantity

• Ton-miles of freight traffic carried
• Units of production per machine hour

• Labor hour per unit of output.
• Pounds of ________ per horse power
• produced

They may reflect quality

• Hardness of bearing
• Closeness of tolerance

• Rate of climb of an airline
• Durability of fabric
• Fastness of color

Cost standards

• Indirect cost per unit
• Labor cost per unit
• Machine hour costs

• Direct cost per unit produced
• Labor cost per unit
• Material cost per unit

Capital standards

• Roi
• Profit ratios
• Inventory turnover

• Activity ratios
• Profit ratios
• Inventory turnover

Revenue standards

• Revenue per bus passenger-mile
• Average sales per customer

6
Management levels and control
High
Top
Degree Of Concern
Moderate
Middle
Low
First line
Feedback
Concurrent
Preliminary
Type of control
7
Controlling takes place at all managerial levels
Actual Accomplishment
Standard Or goal
For the president (annually)
Net sales---------------------------------------5
0,000,000 47,671,280 Net return
on investment-------------------19
7 Net profit-------------------------
--------------3,500,000 3,481,688
For the departmental manager (monthly
Tons of m-35 produced-------------------------2,24
0 2,232 Direct labor
hours------------------------------1,520
1,670 Indirect labor
hours-----------------------------200
187
For the individual employee (weekly)
Units produced------------------------------------
--750 681 Quality
ratio------------------------------------------99
98 Scrap--------------
-------------------------------------56
67
8
Feedback loop of management control
Actual Performance
Desired Performance
Measurement Of actual Performance
Implementation Of Corrections
Comparison of Actual performance
Against Standards
Analysis of Causes of Deviation
Program of Corrective Deviation
Identification Of Deviation