1. CONTROLLING

2. CONTROLLING
Control refers to the task of ensuring that activities
are producing the desired results.
Controlling is determining what is being
accomplished – that is evaluating the
performance and if necessary applying
corrective measures so that the performance
takes place according to plans.

3. CONTROLLING AND OTHER FUNCTIONS
1. Planning as the basis
2. Action as the Essence
3. Delegation as the Key – responsible and
having authority to perform controlling
functions
4. Information as the Guide

4. IMPORTANCE OF CONTROL
1. Reduces uncertainties
2. Eliminates wastages and makes management
accountable
3. Prevents misuse of delegated authority
4. Ensure better coordination among the
functions of management
5. Making planning effective
6. Organisational Effectiveness

5. REQUISITIES OF GOOD CONTROL SYSTEM
1. Reflecting Organisational Needs
2. Forward Looking
3. Promptness in Reporting Deviations
4. Pointing out Exceptions at critical points
5. Objective – definite and clear and positive
6. Flexible
7. Economical
8. Simple
9. Motivating
10. Reflecting Organisational Pattern

6. PROCESS OF CONTROL
1. Establishment of standards
2. Measurement of performance
3. Comparing performance with the
standards
4. Taking corrective action

7. CONTROL TECHNIQUES
-OPERATIONAL CONTROL TECHNIQUES
-OVEALL ORGANISATIONAL CONTROL
TECHNIQUES

8. OPERATIONAL CONTROL
OC is exercised at the level of various operating
units by the concerned operating managers

9. OPERATIONAL CONTROL
1. Financial Control
2. Operating Control
3. Inventory Control

10. OVERALL CONTROL TECHNIQUES
1. Ratio Analysis
2. Management Audit
3. Human Resource Accounting

11. OPERATIONAL CONTROL
- FINANCIAL CONTROL
Financial control is relevant for those aspects of
business operations whose outcomes are
expressed in monetary terms.

12. OPERATIONAL CONTROL
- FINANCIAL CONTROL
1. BUDGETARY CONTROL
It is the process of comparing the actual results
with the corresponding budget data in order to
approve accomplishments or to remedy
differences by either adjusting the budget
estimates or correcting the cause of the
difference

13. OPERATIONAL CONTROL
- FINANCIAL CONTROL
2. CONTROL THROUGH COSTING
Involves the control over costs in the light of
certain pre-determined costs usually known as
standard costs
Standard costs are pre-determined operation costs
computed to reflect quantities, prices and level
of operations

14. OPERATIONAL CONTROL
- FINANCIAL CONTROL
3. BREAK-EVEN ANALYSIS
Relationships of fixed costs, variable cost, price
level of output and sales mix to the profitability
of the organisation

15. OPERATIONAL CONTROL
- FINANCIAL CONTROL
4. RESPONSIBILITY ACCOUNTING
-Focuses attention on management by objectives
-Each person is responsible for his area of
operation and for effective control he must know
what is costs should be and what his costs were.

16. OPERATIONAL CONTROL
- FINANCIAL CONTROL
5. INTERNAL AUDIT
Ensuring that accounts properly reflects the facts

17. OPERATIONAL CONTROL
- OPERATING CONTROL
1. QUALITY CONTROL
2. QUALITY CONTROL THROUGH QUALITY
CIRCLE

18. OPERATIONAL CONTROL
- INVENTORY CONTROL
1. ABC CONTROL
A – high value items - quantity less
B – Average value and quantity
C – low value and quantity in large
2. ECONOMIC ORDER QUANITITY
3. PERT/CPM

19. OVERALL CONTROL TECHNIQUES
1. FINANCIAL RATIO ANALYSIS
-Liquidity Ratios
-Activity Ratios
-Leverage Ratios
-Profitability Ratios
2. RETURN ON INVESTMENT
3. MANAGEMENT AUDIT
4. HUMAN RESOURCE ACCOUNTING

20. ROLE OF INFORMATION TECHNOLOGY IN
CONTROL
MIS designed to supply information required for
effective management of an organisation

21. READING
Principles of Management – Harold Koontz,
A Ramachandra Aryasri
Principles of Management – L.M.Prassad
Principles & Practice of Management – T.N
Chabbra