The Presentation on Control Systems and Control Techniques

FacultyMrs. Anamika Sharma Principles And Practices Of Management ByPooja Boolani Mohd. Arshad Neelu Bhuria MS sunita Mahendra
MBA SEM-I
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CONTROL AND CONTROL SYSTEMS

What gets measured happens

What is important to know about the control process?

What are some organizational control systems and techniques?

Control Systems
Controlling is one of the four management functions. Control begins with objectives and standards. Control measures actual performance. Control compares results with objectives and standards. Control takes corrective action as needed. Control focuses on work inputs, throughputs, and outputs.
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Control Systems
Controlling
The process of measuring performance and taking action to ensure desired results

Control Systems
Output Standard Measures performance results in terms of quantity, quality, cost, or time. Input Standard Measures work efforts that go into a performance task

Types of controlling techniques

- General Techniques of Control - Special Techniques Of Control

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General Techniques of Control

1.Personal Observation Through Direct observation and personal observation a manager can periodically observe his subordinates , their work methods and their results. Observation leads to evaluation of work and encourages employees to perform well.

2.Setting examples manager should put his ideal behavior in directing his subordinates.a manager can teach by his actions and behavior.

3.Records and reports Through records and reports a manager can measure performance and results.He can maintain that also for future use.

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4.Policies and procedures These reflect the past experiences of many managers and act as guides for managers to use in controlling the behavior and output of workers. Policies provide means of self-control and are primary instrument to coordination and control.

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5.charts and manuals Progress charts permit each department to measure the performance of its employees against the past results. Manuals also serve the purpose of management control.

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6.Standing rules and limitation Standing orders-tell employees what to do under given set of conditions. Standing procedures-tell employees spell out the sequence of given conditions. Definite limits are placed beyond which employees with decision making power cannot go without express permission.
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7.Written Instructions Written instruction through circular letters ,bulletin ,notes etc are used to check the subordinate's performance.

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8.Censure It is any form of criticism or disapproval .It may be reprimand or ridicule for the careless employees . Should be used with wisdom and understanding.

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9.Disciplinary Action when an employee makes mistakes or has become a chronic absentee ,may be given a warning of action against him . In serious matters employees can be suspended to control their irregular behavior.

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10.control unit or control selection it is used to control overall performance of the organization. Also known as management control department. Supplies facts ,recommendations to have orderly and efficient management. It reviews directives ,methods and policies.

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11.Social Control Devices Are the norms ,customs ,conventions ,unwritten laws ,habits ,practices ,status ,and prestige systems etc. which are organizationally determined value to check employees behavior.

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12.Rewards It is related to verbal form or linked with performance and motivation Or performance evaluation or work satisfaction. Work targets achieved in accordance with present targets.

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13.Budgets Give the effective means of controlling operations. Actual performance is measured and compared against budgeted standards.

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14.Accounting it lays down for recording the business transactions and operations. This system helps to check past figures and decide the best action to be taken in future.

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15.Internal Auditing it is an examination of how well an organization is functioning. It involves a careful look at operations compared with plans. It is concerned with finding out the effectiveness of management policies.

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16.Statistical data Can be useful in following processes Purchasing Control buying what is needed at the right quality, at a good price, and for on-time delivery. Supply Chain Management uses information technology to link suppliers and purchasers in cost efficient ways. Inventory Control ensures that inventory is only big enough to meet immediate needs.
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 Economic Order Quantity places new orders when inventory levels fall to predetermined points. Just-in-time Scheduling routes materials to workstations just in time for use. Total Quality Management (TQM) commits to quality objectives, continuous improvement, and doing things right the first time. Quality Circle is a small group that meets regularly to discuss ways of improving work quality
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17.Break-even analysis It shows the relation between different volumes ,costs ,sales price and sales mix to profits. Breakeven is that level of volume at which revenue is exactly equal to the cost and helps to identify the minimum sales volume to prevent a loss or achieve established profit objectives.
How to Calculate a
Breakeven Point
Breakeven Point = Fixed Costs / (Price Variable Costs)

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18.Self-control It occurs through proper orientation and training. Employees work attitude also serves to reinforce their self control.

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Special Techniques Of Control

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1.Human Asset Accounting Costs associated with recruiting ,selecting and training employees are treated as expense rather than investment. To control cost of human resources this technique is developed and used.

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2.Standard Costing in this system standards for materials ,labor ,overheads ,and other components are laid down and actual costs are compared with standard costs.

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3.Cash Flow Analysis It helps in the assessment of the cash resources available to a firm ,their uses ,and their timing.

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4.Management Information System It is developed to collect ,process and distribute information about the operations of the firm to its managers and others.

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5.Cybernetic Control System based on self-regulating procedures that automatically detect and correct deviations from planned activities and effectiveness levels.

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Characteristics of a good control system / techniques

Specially designed Economical Flexible Accurate Timely Impartial And Coordinated Focus On Results Follow Organizational Patterns Forward Looking
Periodic Review
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Thank You

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Any queries??????????

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