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
Thank You