controlling and coordination
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Transcript controlling and coordination
Chapter 9
Definitions
Determining what is being accomplished, i.e.
evaluating the performance and if necessary, applying
corrective measures so that the performance takes
place according to plans
Ensuring that actions in an organization are
performed as per the policy
Process of taking steps to bring actual results and
desired results closed together
Process of bringing about conformity of performance
with planned action
Importance
Achieving organizational objectives
Judging precision of standards
Making optimum use of resources
Increases employee motivation and morale
Ensuring order and discipline
Facilitate harmony in action
Control Process
Setting
performance
standards
Measurement of
real performance
Comparing
performance with
plans
Selecting and
Implementing
corrective
measures
Listing out
corrective
measures
Finding the causes
for variations
Control Techniques
Traditional Techniques
Personal Observation
Statistical Data
Special Reports and
Analysis
Breakeven Analysis
Budgetary Control
Modern Techniques
Return on Investment
Ratio analysis
Responsibility
Accounting
Managerial Audit
PERT
CPM
MIS
Traditional Techniques
Personal Observation
Statistical Data
Special Reports and Analysis
Traditional Techniques
Break Even Analysis
Involves calculating the Break Even Point
Point at which there is no profit, no loss
Beyond the point profit, below the point loss
Budgetary control
Budgets: statements of anticipated results
Actual performance can be compared against the
budgeted performance
Modern Techniques
Management Audit:
Systematic evaluation of functioning, performance and
effectiveness of management of an organization
Conducted by a team of experts
Team collects data from management, employees,
customers, suppliers etc.
Collected data analyzed to judge performance of the
management
Helps to judge performance of management objectively
Modern Techniques
PERT and CPM:
PERT( Programme Evaluation and Review Technique)
CPM( Critical Path Method)
Based on expected completion time computed from
three estimates of time: optimistic, pessimistic and most
likely time.
Used for planning, scheduling and executing large
projects involving number of interrelated activities
Modern Techniques
Return On Investment
Provides a basic benchmark for measuring whether or
not invested capital has been used successfully to
generate realistic returns
MIS:
Data collected and stored for future reference
Data bank is maintained
When required managers may use the information
Modern Techniques
Ratio Analysis
For analyzing financial statements
Liquidity ,Solvency, Profitability and Turnover ratios are
commonly used
Responsibility Accounting
Performance of employees judged by assessing how far
they have been able to meet the preset targets
Chapter 10
Definition
Set of human and structural mechanisms designed to
link the parts of the enterprise together to help achieve
the specified objectives
Orderly arrangement of group effort to provide unity
of action in the pursuit of common purpose
Need and Importance
Group effort
Mutual Confidence
Helps to resolve conflicts
Encourages team spirit
Smooth working
High employee morale
Good relations
Optimum utilization of resources
Coordination as an essence of
Management
Planning
Organizing
Staffing
Directing
Communicating
Leading
Motivating
Controlling
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