PRESENTED BY
MALA GUPTA
NEHA VERMA
PANKAJ SINGH
NEERAJ SHARMA
AJAY KUMAR
 Max
Weber a German sociologist is known as The
Father of Bureaucracy.
 About 1910 he made a study of different types of
business and government organisations and
distinguished 3 basic types of administration in
them
 Leader – oriented
 Tradition – oriented
 Bureaucratic.
“Management is a process involving planning,
organising, staffing, directing, and controlling
human efforts to achieve stated objectives in an
organisation.”
“Controlling is checking current performance
against predetermined standards contained in
plans, with a view to ensuring adequate progress
and satisfactory performance.”
E.F.L. Brech
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Control is a basic function of management
Control relates to people , things and actions
Control is a continuous process
The controlling process aim at taking corrective
measures
Controlling on future events
Attainment of goal
To find out the time consumed in a certain amount
of work
 To find the available resources and facilities for the
performance of different works
 To find out weather the desired result have been
achieved of the desire quality in the standard time
or not
 The main object of controlling to get the work done
by a manager from his subordinate according to
pre- determine standards
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Adjustment in operation
Verification policy
Managerial responsibility
Psychological pressure
Coordination in action
Organisational efficiency and effectiveness
Protection against risks
Helpful in coordination and motivation
There are three basic steps in a control process.
 Establishing standards
 Measuring and comparing actual results against
standards
 Taking corrective action
Desired
performance
Actual
performance
Implementation
of correction
Measurement
of performance
Corrective
action plain
Comparison of
actual and
standard
Analysis of
causes of
deviation
Identification
of deviation
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The control process begins with planning and the
establishment of performance objectives.
Performance objectives are defined and the
standards for measuring them are set.
There are some standards tend to be following
 Physical standards
 Cost standards
 Revenue standards
 Capital standards
 Intangible standards
 Working practice standards
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Measurements must be accurate enough to spot
deviations or variances between what really occurs
and what is most desired.
Without measurement, effective control is not
possible.
The comparison of actual performance with desired
performance establishes the need for action
To determine the correct causes for deviation.
( poor machinery, inadequate communication system
, lack of motivation of subordinates etc.)
 The remedial action that should be taken depends
on the nature of causes for variation.
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Past oriented controls – these are known as past –
action controls and measure results after the process.
Examples of such controls are most according records
inspection of goods and services and area reports etc.
 Future oriented controls – these are also known as
steering controls or feed – forward controls and are
designed to measure results during the process so that
can be taken before the job is done on the period is
over.
Examples of such controls are cash flow and funds flow
analysis , networks planning etc.
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INFORMATION
A control system is need for there
purposes
 To measure progress
 To uncover deviations
 To indicate corrective action
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Suitable
Timely and forward looking
Objective and comprehensible
Flexible
Economical
Prescriptive and operational
Acceptable to organisation members
Reveal exceptions at strategic points
Motivate people to high performance
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Control over policies
Control over organisation structure
Control over personnel
Control over wages and salaries
Control over costs
Control over methods and manpower
Control over capital expenditure
Control over service departments
Control over line of products
Control over R & D
Control over foreign operations
Control over external relations
Over all control
These are divided in two types of
control techniques
1. Old control techniques
2. New control techniques
TRADITI
ONALCO
NTROL
TECHNIQ
UES
BUDGETARY CONTROL
RESPONSIBILITY ACCOUNTING
BREAK EVEN ANALYSIS
FINANCIAL STATEMENTS AND RATIO
ANALSIS
RETURN ON INVESTMENT
REPORTS
MANAGEMENT AUDITING
PERSONAL OBSERVATION
A budget is a statement of anticipated
results during a designated time period
expressed in financial and non- financial
terms.
Responsibility accounting can be
defined as a system of accounting under
which each department head is made
responsible for the performance of his
department.
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Break even analysis is another control
device used in business firms.
it involves the use of chart to depict the
overall volume of sales necessary to cover
costs.
it is that point at which the cost and
revenue of the enterprise are exactly equal.
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Financial statements indicate what financial
events occurred since the last statement.
Depending on the company period covered
by a financial statement could be the
previous year, previous quarter , or the
previous month.
Ratio analysis seeks to extract information from
a financial statement in a way that will allow an
organisations financial performance or
condition to be evaluated.
The ratios must commonly used by
organisations are the following –
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Liquidity ratios
Debt ratios
Profitability ratios
Operating ratios
 ROI
also known as the Du Pont system
of financial analysis.
this ratio computed on the
basis of capital turnover (sales divided
by investment) multiplied by earnings as
proportion of sales (profit divided by
sales).
The following are certain types of reports
which are prepared and submitted to the
management regularly
 Top management report
 Sales management report
 Production report
 Special reports
INTERNAL AUDITING - internal auditing also
called operational control is an effective tool of
managerial control.
2. EXTERNAL AUDITING – external auditing is an
independent appraisal of the organisation
financial accounts and statements.
The purpose of it is to ensure that the interests of
shareholders and other outside parties connected with
the company are safeguard against the malpractices
of the management.
1.
Quality control can be applied at two distinct
phases of operations
 statistical quality control of an operation in
process
 Inspection control of raw material semi
finished product & finished products
A manager can also exercise fruitful control
over his subordinates by observing them
while they are engaged in work.
 Personal observation helps the manager not
only in knowing the workers attitude
towards work but also in correcting their
work and methods.
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MODERN
CONTROL
TECHNIQUES
PERT & CPM
HUMAN
RESOURCE
ACCOUNTING
MANAGEMENT
INFORMATION
SYSTEM
PERT/CPM is used either to minimise
total time , minimise total cost for a
given total time , minimise time for
given cost or minimise idle resources.
Identification of activities
Sequential arrangement of activities
Time estimates of activities
Network construction
Critical path
Human resource accounting is accounting
for people as an organisational resource.
 It involves measuring the costs incurred by
business firms and other organisations to
recruit, select, hire, train, and develop
human assets.
 It also involves measuring the economic
valve of people to the organisation.
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An information system can be any
organised combination of people,
hardware, software, communication
networks, and data resources that
collects, transforms, and disestimates
information in an organisation.
The management functions of planning, and
controlling are widely considered to be the best means
of describing the manager’s job, as well as the best
way to classify accumulated knowledge about the
study of management. Although there have been
tremendous changes in the environment faced by
managers and the tools used by managers to perform
their roles, managers still perform these essential
functions.