This document discusses directing and controlling as management functions. It defines directing as giving instructions and guiding staff to achieve organizational goals, similar to a teacher guiding students. Controlling is defined as monitoring actual performance against plans and taking corrective actions if needed. Some control techniques discussed include budgets, management audits, PERT/CPM, MBO, and break-even analysis. Effective control systems can guide operations, improve performance appraisal and morale, while ineffective systems may face resistance from employees and have high costs.

1. GANDHINAGAR INSTITUTE
OF TECNOLOGY
PAWAR PARTH J.
BUTANI PARTH D.
SURANI KISHAN J.
Prepared By :-
 Sub :- Engineering Economics & Management
 Topic :- Directing & Controlling.
 Guided By :- Prof. Prashant R Pandya
 Branch :-Electrical (B3)
 Academic Year :-2015-16

3. DIRECTING
DIRECTING MEANS GIVING INSTRUCTIONS, GUIDING,
COUNSELLING, MOTIVATING AND LEADING THE STAFF IN AN
ORGANISATION IN DOING WORK TO ACHIEVE ORGANISATIONAL
GOALS.
THE MANAGERIAL FUNCTION OF DIRECTING IS LIKE THE
ACTIVITIES OF A TEACHER IN A CLASSROOM. IN ORDER TO
TEACH, A TEACHER HAS TO GUIDE HIS STUDENTS, MAINTAIN
DISCIPLINE, INSPIRE THEM AND LEAD THEM TO THE DESIRED
GOAL
IN ENTERPRISE. IT HELPS THE MANAGERS IN ENSURING QUALITY
PERFORMANCE OF JOBS BY THE EMPLOYEES AND ACHIEVEMENT
OF ORGANISATIONAL GOALS. IT INVOLVES
SUPERVISION,COMMUNICATION AND PROVIDING LEADERSHIP TO
THE SUBORDINATES AND MOTIVATING THEM TO CONTRIBUTE TO
THEIR BEST OF CAPABILITY.

4. MEANING OF DIRECTING
• telling people what is to be done and explaining to them
how to do it;
• issuing instructions and orders to subordinates to carryout
their assignments as scheduled;
• supervising their activities;
• inspiring them to meet the mangers expectation and
contribute towards the achievement of organisational
objectives; and
• providing leadership.

5. IMPORTANCE OF DIRECTING
• It guides and helps the subordinates to complete the given
task properly and as per schedule.
• It provides the necessary motivation to subordinates to
complete the work satisfactorily and strive to do them best.
• It helps in maintaining discipline and rewarding those who do
well.
• Directing involves supervision, which is essential to make sure
that work is performed according to the orders and instructions.

6. • Different people perform different activities in the organisation.
All the activities are interrelated. In order to co-ordinate the
activities carried out in different parts and to ensure that they are
performed well, directing is important. It thus, helps to integrate
the various activities and so also the individual goals with
organisational goals.
• Directing involves leadership that essentially helps in creating
appropriate work environment and build up team spirit.
IMPORTANCE OF DIRECTING

8. Controlling
Meaning – Controlling is a end function of
management .
In brief controlling is a process of monitoring
actual performance and taking corrective
measure if required .
It is a process of checking to determine whether
or not plans are being properly implemented and
objectives are achieved .

9. Steps in Controlling process.
Setting Targets ComparisonMeasurementImplementation
Deviation Follow-ups
Implementing
Measure
Control
Measures

10. Steps in Controlling process.
1. Setting targets
2. Implementation of targets
3. Measurement
4. Comparison
5. Deviation
6. Corrective Measures
7. Implementing Measures
8. Follow-Ups

11. Control Techniques
1.Budgetary control :
Budgets are statement of anticipated results either in monetary or non- monetary
terms.
There are various types of budgets such as :-Cash Budget , Production budget ,Capital
expenditure budget , etc.
2.Management Audit :
Management audit refers to systematic evaluation of the functioning and
performance of management .
It reviews the quality of management.

12. Control Techniques
3.PERT and CPM :
They are based on same principles , the only difference is that CPM is based on a
single estimate of time requires for the completion of activities.
While the PERT is based on completion time computed from – Optimistic,
Pessimistic & Most likely time.
4.MBO :
In MBO superiors and sub-ordinates jointly decides the Goals , plan out the
activities.
The sub-ordinate managers implement the plan and finally there is a joint review
of performance

13. Control Techniques
5.Direct Supervision :
In every organization supervisors directly supervise and observe the sub-ordinates the
performance ,if they found any deviation they can suggest immediate corrective
actions.
6.Self Control :
This is specially applicable at higher level.
Here the managers set their own targets , observe the performance , find out the
deviations and take necessary actions to improve the performance.

14. Control Techniques
7.Break Even Analysis :
It indicates at what cost and volume a firm would make a profit .
It helps to decide break even point .
The break even point is that point where cost is exactly same as revenue i.e. no profit no loss
point .
8.MIS :
In MIS information is collected from internal and external environment .
Analysis is done and date is stored for future reference .
Managers can use this information whenever required.

15. Merits of an effective Control System.
1. Guide to operations .
2. Facilitates performance appraisal.
3. Improves Morale.
4. Facilitates Coordination.
5. Facilitates optimum utilization of resources.
6. Minimization of wastages.
7. Fixes responsibility.
8. Higher Efficiency.
9. Direction for Employee.
10. Corporate Image.

16. Demerits of an effective Control System.
1. No control on external factors:
An enterprise cannot control the external factors such as government policy, technological changes,
change in fashion, change in competitor’s policy, etc.
2. Resistance from employees:
Employees often resist control and as a result effectiveness of control reduces. Employees feel
control reduces or curtails their freedom. Employees may resist and go against the use of cameras,
to observe them minutely.
3. Costly affair:
Control is an expensive process it involves lot of time and effort as sufficient attention has to be paid
to observe the performance of the employees. To install an expensive control system organizations
have to spend large amount. Management must compare the benefits of controlling system with
the cost involved in installing them. The benefits must be more than the cost involved then only
controlling will be effective otherwise it will lead to inefficiency.