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Management Control
CONTROL
One of the managerial functions like planning,
organizing, staffing and directing.
It is an important function because it helps to
check the errors and to take the corrective
action so that deviation from standards are
minimized and stated goals of the
organization are achieved in desired manner.
Control in management means setting
standards, measuring actual performance and
taking corrective action.
Characteristics of Control
• Control is a continuous process
• Control is a management process
• Control is embedded in each level of
organizational hierarchy
• Control is forward looking
• Control is closely linked with planning
• Control is a tool for achieving
organizational activities
PURPOSES OF CONTROLS
 Controls make plans effective.
 Controls make sure that organizational
activities are consistent.
 Controls make organizations effective.
 Controls make organizations efficient.
 Controls provide feedback on project
status.
 Controls aids in decision making.
TYPES OF CONTROL
1. Feedforward controls, sometimes called
preliminary or preventive controls, attempt to
identify and prevent deviations in the standards
before they occur.
• Feedforward controls focus on human, material,
and financial resources within the organization.
• These controls are evident in the selection and
hiring of new employees. For example,
organizations attempt to improve the likelihood
that employees will perform up to standards by
identifying the necessary job skills and by using
tests and other screening devices to hire people
with those skills.
2. Concurrent controls monitor ongoing employee
activity to ensure consistency with quality
standards.
 These controls rely on performance standards,
rules, and regulations for guiding employee tasks
and behaviors.
 Their purpose is to ensure that work activities
produce the desired results.
 As an example, many manufacturing operations
include devices that measure whether the items
being produced meet quality standards. Employees
monitor the measurements; if they see that
standards are not being met in some area, they
make a correction themselves or let a manager
know that a problem is occurring.
3. Feedback controls involve reviewing
information to determine whether performance
meets established standards.
• For example, suppose that an organization
establishes a goal of increasing its profit by 12
percent next year. To ensure that this goal is
reached, the organization must monitor its profit
on a monthly basis. After three months, if profit
has increased by 3 percent, management might
assume that plans are going according to
schedule
CONTROL PROCESS
1. Establish standards to measure
performance.
2. Measure actual performance.
3. Compare performance with the
standards.
4. Take corrective actions.

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Management Control

  • 2. CONTROL One of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner. Control in management means setting standards, measuring actual performance and taking corrective action.
  • 3. Characteristics of Control • Control is a continuous process • Control is a management process • Control is embedded in each level of organizational hierarchy • Control is forward looking • Control is closely linked with planning • Control is a tool for achieving organizational activities
  • 4. PURPOSES OF CONTROLS  Controls make plans effective.  Controls make sure that organizational activities are consistent.  Controls make organizations effective.  Controls make organizations efficient.  Controls provide feedback on project status.  Controls aids in decision making.
  • 5. TYPES OF CONTROL 1. Feedforward controls, sometimes called preliminary or preventive controls, attempt to identify and prevent deviations in the standards before they occur. • Feedforward controls focus on human, material, and financial resources within the organization. • These controls are evident in the selection and hiring of new employees. For example, organizations attempt to improve the likelihood that employees will perform up to standards by identifying the necessary job skills and by using tests and other screening devices to hire people with those skills.
  • 6. 2. Concurrent controls monitor ongoing employee activity to ensure consistency with quality standards.  These controls rely on performance standards, rules, and regulations for guiding employee tasks and behaviors.  Their purpose is to ensure that work activities produce the desired results.  As an example, many manufacturing operations include devices that measure whether the items being produced meet quality standards. Employees monitor the measurements; if they see that standards are not being met in some area, they make a correction themselves or let a manager know that a problem is occurring.
  • 7. 3. Feedback controls involve reviewing information to determine whether performance meets established standards. • For example, suppose that an organization establishes a goal of increasing its profit by 12 percent next year. To ensure that this goal is reached, the organization must monitor its profit on a monthly basis. After three months, if profit has increased by 3 percent, management might assume that plans are going according to schedule
  • 8. CONTROL PROCESS 1. Establish standards to measure performance. 2. Measure actual performance. 3. Compare performance with the standards. 4. Take corrective actions.