UNIT V Controlling System and Process of Controlling - Requirements
UNIT V Controlling System and Process of Controlling - Requirements
UNIT V Controlling System and Process of Controlling - Requirements
System and process of controlling – Requirements for effective control – The Budget
as control Technique – Information Technology in controlling – use of Computers in
handling the Information – Productivity – Problems in Management – Control of
Overall performance – Direct and Preventive Control – Reporting – The Global
Environment – Globalisation and Liberalisation – International Management and
Global Theory of Management.
Definition
- as the process of analyzing actual operations and seeing that actual
performance is guided towards expected performance.
- Comparing operating results with plans and taking corrective actin when
results deviate from plans
- Def. Koontz and O’Donnell “ The managerial function of controlling is the
measurement and correction of the performance of activities of subordinates
in order to make sure that enterprise objectives and the plans devised to attain
them are being accomplished.
Elements of Control
1. Planning
2. Information Feedback
3. Delegation of Authority
4. Remedial action
Control Process
1. Fixation of Standard
2. Measurement of Performance
3. Comparing performance with standards
4. Correction of Deviations
Merits
Optimum use of resources
Fixation of Responsibility
Effective coordination
Planned approach
6. Profit & loss control
7. External audit Control
8. Overall Control criteria ( BEP Analysis)
9. Return on Investment Control
10. Management Audit
Organisation Structure
Executive appraisal
Functioning of the management board
Soundness of Earning
Economic Functioning
Service to stock holders
R&D
Fiscal Policy
Production Efficiency
Techniques of Management
MBO
MBE
MBP – Management by Participation implies the mental and emotional
involvement of employees, share holders, investors, consumers and other
stake holders in the decision making process.
Forms
1. Work Committee
2. Joint Management Councils
3. Worker Directors
4. Co-partnership
Information
Technology
Raw Materials
Main Power Planning, operating & Product
Management Controlling production Services
Physical Factors ( like land, System
Building, Machines, etc)
Globalisation
Drawbacks of Globalisation
1. Globalisation increases the problems of unemployment
2. Domestic Industries finds difficulty in survival
Only group of people who participate in the process of Globalisation will be benifitted,
this creates income inequality within the country
3. Control on domestic economy becomes more difficult
4. Developing country suffers from the problem of brain-drain
International Business
- Involves commercial activities that cross national frontiers
- It is a process of Entrepreneur conducting business activities across national
boundaries
- It consist of Exporting, Importing, lIcensing, opening of Sales office
- The activities necessary for ascertaining the need and want of target consumer
often takes place in more than one country. When an Entrepreneur executes
his or her business model in more than one country International Business
Occuring.
PART B
1. “ The essence of control is action” Comment
2. “Planning & Controlling functions are two sides of the coin” comment
3. Discuss the control process and types of control
4. “ Planning is looking ahead but controlling is looking back.” Explain
5. Briefly explain the Control techniques
6. “ Budgeting is basically an instrument of planning but it also serves as a technique
of control – comment
7. Explain the concept of Global Environment
8. Explain the role in IT in present scenario