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Concept: meaning, definition
Major control techniques
Essentials of an effective control system
Meaning, definition and features
Importance and Principles
Major coordination techniques
- Management control refers to setting of predetermined standards, comparing actual
performance with these standards and if required, taking corrective actions to ensure the
achievement of organizational goals.
‘‘Managerial control implies the measurement of accomplishment against
the standard and the correction of deviations to assure attainment of
objectives according to plans.’’
-Koontz and O’Donnell
Determines standards, norms and
Fundamental management function.
It is all pervasive.
It is related to results.
STEPS IN THE PROCESS OF
1.Setting performance standards
2.Measurement of actual performance against
3.Identification of deviations.
4.Analysis of deviations.
5.Initiating corrective actions.
Techniques of controlling:
a) Past oriented and future
b)Market control, bureaucratic
control and clan control
c)Old control and new control
1. Personal Observation
2. Statistical Reports
3. Break – even analysis
4. Budgetary control
1. Return on Investment (ROI)
2. Management Audit
3. Management Information System(MIS)
4. Zero-based Budgeting (ZBB)
5. PERT (Programme Evaluation and
6. Ratio Analysis
7. Responsibility Accounting
Essentials of an effective control system
• Timely and forward looking
• Objective and comprehensible
• Prescriptive and operational
• Acceptable to organization members
• Reveal exceptions at strategic points
• Motivate people to high performance
• Should not lead to less attention to other aspects
• Should be periodically reviewed and evaluated
Importance of controlling:
Accomplishing organizational goals
Judging accuracy of standards
Making efficient use of resources
Improving employee motivation
Ensuring order and discipline
Facilitating coordination in action
RELATIONSHIP BETWEEN PLANNING AND CONTROLLING
PLANNING identifies action and CONTROLLING ensures that those actions are
carries out properly.
Poor control system is followed by failure of plans and effective control system
reinforces the present plans.
Controlling helps the managers in either revising their plans or abandoning them
Framing plans presume the existence of a well designed control system and the
controlling function similarly presumes the existence of plans which are well
within the reach of the organization
- an orderly arrangement of group efforts to maintain harmony among individuals efforts
towards the accomplishment of common goals of an organization.
‘‘Coordination is balancing and keeping together the team by ensuring suitable allocation
of tasks to the various members and seeing that the tasks are performed with harmony
among the members themselves.’’
Integrates group efforts
Responsibility of all managers
Ensures unity of action
A deliberate function
Mary Parker Follet has suggested the following principles of
Principle of Early Start
Principle of Direct Contact
Principle of Reciprocal Relationship
Principle of Continuity
1. Rules, Procedures
RULES, PROCEDURES AND POLICIES
Standard policies, procedures and rules are laid down to
cover all possible situations.
Planning ensures coordinated effort. Strategic planning
does the task of relating the organization to the
environment so as to reduce uncertainty and the need for
It is the oldest as well as simplest device for achieving
coordination. By putting interdependent units under one
boss, some coordination among their activities is
Importance of Coordination:
To harmonize conflicts
Emphasizes human relation
Retention of good personnel
Promotes stability, growth and prosperity of the organization
Efficiency and economy
“COORDINATION IS THE VERY ESSENCE OF