CONTROLLING YOUR MIND:

Chapter 7: Controlling
Lesson 1:
Definition and Nature of Management Control

CONTROLLING:

 Is a management function that involves ensuring that

the work performance of the organization’s members
are aligned with the organization’s value and
standards through monitoring, comparing, and
correcting their actions.

Chapter 7: Controlling
Importance of Management Control

Management control makes sure:

• That the firm’s operating cash flow is sufficient, efficient,
and if possible profitable when invested.
• That the decision to seek funds should be appropriate, so
as not to incur expenses as well since borrowing would be
subjected to payment of interest.

Chapter 7: Controlling
Importance of Management Control

Management control makes sure:

• That there is a continuous monitoring of the organization’s
activities, followed by corrective actions based on
previously planned programs of action.
• That tasks are completed with less errors by comparing
these with previously set standards or with competitor’s
standards or standards prevailing in their particular
industry setting.

Chapter 7: Controlling
The Control Process:

Control techniques used for controlling financial

resources, office management, quality assurance, and others
are essentially the same. The typical control process involves
establishing standards, measuring and reporting actual
performance, and comparing it with standards, and taking
action.

Chapter 7: Controlling
The Control Process:
Set Performance
Standards

Reward successes, Measure

correct problems Performance

Compare performance
with standards

Chapter 7: Controlling
Lesson 2:
The Link between Planning and Controlling

- The relationship between planning and controlling could be

easily established. Control is integrated planning. Planning
involves a thorough process which is essential to the creation
and refinement of a blue print or its integration with other
plans that may combine forecasting of developments in
preparation for future scenarios in order to eventually react
to them.

Chapter 7: Controlling
 Planning and Control at Different Levels
Top level management
Strategic Planning Strategic Control Organizational wide perspective
Long time frame

Middle level management

Tactical Planning Tactical Control Department perspective
Periodic time frame

Operational Lower level management

Operational Control Unit/individual perspective
Planning
Short time frame

Chapter 7: Controlling
Evaluation:

Bring out ½ sheet of paper and discuss in your

perspective and understanding the control process.

Assignment:

Name one company and explain/discuss/illustrate how

this company does their own control process.

Chapter 7: Controlling
 Thank you and Good Day!!!

Chapter 7: Controlling
Organizational Performance Control

Organizational productivity
- the amount of goods or services produced (output) divided
by the inputs needed in order to produce the said output.
Organizational effectiveness
- is a measure of the organizational goals’ suitability to
organizational needs and how well these said goals are being
attained.

Chapter 7: Controlling
Other Performance Controls in Organizations

Bureaucratic Control
- Makes use of strict rules, regulations, policies, procedures,
and orders from formal authority.
Clan control
- Is based on compliance with norms, values, expected
behavior related to the firm’s organizational culture, and other
cultural variables of the country where the company is
located.

Chapter 7: Controlling