Organization and Management: Quarter 2 LAS 6: Different Controlling Methods and Techniques in Accounting and Marketing

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Organization and Management

Quarter 2
LAS 6: Different Controlling Methods and
Techniques in Accounting and Marketing
SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

Eco Athletic Field, F. Pimentel Ave., Daet, Camarines Norte 4600
camarines.norte@deped.gov.ph
DepEd Camarines Norte
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Organization and Management – Grade 11 Quarter 2 – LAS 6: Different Controlling Methods

and Techniques in Accounting and Marketing
Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government
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included in this book are owned by their respective copyright holders. Every effort has been exerted
to locate and seek permission to use these materials from their respective copyright owners. The
publisher and authors do not represent nor claim ownership over them.
Development Team of the Module
Writer : DANNA JEAN P. LATIGAY
Editor : ELIZABETH N. MACALE, APII
Reviewers : DARCY GUY Y. MAŃEBO, EPS
Illustrator : DANNA JEAN P. LATIGAY, TII
Layout Artist: DANNA JEAN P. LATIGAY., TII

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LEARNING ACTIVITY SHEET 6
Name of Student: ____________________________________________________________
Learning Area – Grade Level: Organization and Management- Grade 11______________

Date: ______________________________________________________________________
I. INTRODUCTORY CONCEPT
This learning activity sheet was designed and written to help you understand
the different control methods and techniques in accounting and marketing. The
scope of this is the following: why do you need to control and how these methods
and techniques will help you to achieve your goals? Enjoy reading and
accomplishing the tasks.
II. LEARNING SKILLS FROM THE MELCs
Apply the concept and nature of different control methods and techniques in
accounting and marketing
Information Sheet
Controlling helps managers monitor the effectiveness of their planning,

organizing, and leading activities. Controlling determines what is being
accomplished — that is, evaluating the performance and, if necessary, taking
corrective measures so that the performance takes place according to plans.
Controlling Defined
Controlling is a management function involves ensuring the work performance of

the organizations members are aligned with the organizations values and
standards
through monitoring, comparing, and correcting their actions.
Why we need to Control?
To ensure that activities are completed in ways that lead to accomplishment of

organizational goals.
What are the Steps in the Control Process?

Control process involves the following steps shown in the figure.

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Measuring
Establishing and Taking
Standards Reporting Actions
Actual
Feedback
Establishing standards - This means setting up of the target which needs to be

achieved to meet organisational goals eventually. Standards indicate the criteria of
performance such as sales, unit produced and cost.
Measuring and reporting actual performance-The actual performance of the
employee is measured against the target. These include personal observation,
statistical reports, oral reports and written report.
Comparing the actual performance with standards- Determining the degree of
variation between actual performance and the standard.
Taking actions- involves the correction of deviations from the set standards.
Managers may correct deviations by modifying their plans, by improving the
training of employees, by firing inefficient subordinates, or by practicing more
effective leadership techniques.
Types of Control
a. Feedforward Control- A control that prevents anticipated problems before
actual occurrence of the problems
b. Concurrent Control-A control that takes place while the monitored activity is in
progress
c. Feedback Control- A control that takes place after an activity is done.
Example control measures for employee Theft or Fraud
Feedforward Concurrent Feedback
Careful pre-hiring Openly communicate the Use the services of
screening cost of stealing professional investigator
Establish specific Use video surveillance if Redesign control
policies defining condition necessary measures.
theft
and fraud and
discipline
procedures

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Benchmarking for Best Practices

Benchmarking is an approach of measuring a company’s own services and
practices against those of recognized leaders in the industry in order to identify
areas of improvements.
A control tool for identifying and measuring specific performance gaps and areas
for improvement.
Financial Control
Financial control is the control of financial resources as they flow into the
organization, are held by the organization and flow out of the organization.
A. Budgetary Control
Budgetary control is a technique of managerial control in which all operations are
planned in advance in the form of budgets and actual results are compared with
budgetary standards. Types of budget include cash flow or cash budget, capital
expenditure budget, sales budget, expenses budget, profit budget and production
budget.
Purpose of Budget
1. Helps managers coordinate resources and activity.
2. Helps define the established standards for control
3. Provide guidelines about the organization’s resources and expectations.
4. Enable the organization to evaluate the performance of managers and
organizational units.
B. Ratio Analysis refers to analysis of financial statements through computation of
ratios.
Objectives of Ratio Analysis
1. Standardized financial information for comparison
2. Evaluate current operations
3. Compare current performance with past performance
4. Study the efficiency of operations.
5. Study the risk of operations
Financial Statements represent a formal record of the financial activities of an
entity. These are written reports that quantify the financial strength, performance
and liquidity of a company.
Two statements for ratio analysis
1. Statement of Financial Position also known as the Balance Sheet presents the
financial position of an entity at a given date. It is comprised of the following
three elements: asset- something a business owns, liabilities- something a
business owes to someone, and owner’s equity or capital.

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2. Income Statement, also known as the Profit and Loss Statement, reports the
company's financial performance in terms of net profit or loss over a
specified period. Income Statement is composed of income and expenses.
III. ACTIVITIES
Activity 1. Control System at XYZ Company
XYZ Company is a large company engaged in assembling of air-conditioners.
Recently the company had conducted the ‘Time’ and ‘Motion’ study of their 100
workers in the assembly line. It was concluded that on an average, a worker can
assemble ten air-conditioners in a day. The target volume of the company in a day
is assembling of 1,000 units of air-conditioners. The company is providing attractive
allowances to reduce employee’s turnover and absenteeism. All the workers are
happy. Even then the assembling of air-conditioners per day is 800 units only. To
find out the reason, the company compared actual performance of each worker
and observed through CCTV that some of the workers were busy in gossiping.
Immediately corrective actions have been taken by the management and decided
to redesign job to avoid employee gossiping.
1. What management function is discussed above?

________________________________________________________________
2. What are the different steps taken by the management of XYZ Company
which is related to management function described above?
________________________________________________________________
________________________________________________________________
Activity 2. Based from the control system of XYZ Company identify the proper step
in their control process:
1. Establish standards :
________________________________________________________________
2. Measure actual performance:
________________________________________________________________
3. Compare actual performance with standards:
________________________________________________________________
4. Taking actions :
________________________________________________________________

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IV. EVALUATION
Assessment 1: Steps in the Control Process
Identify the steps of controlling process applicable in the following cases:
1. Ella manager of Halika Food Products is observing the quality of their special
Ham. She realises that there is no need for any action to be taken as long as
variances are within the acceptable limits. A day later when she comes to work
she finds the situation opposite to that of the previous day. This time variance
was beyond the acceptable range and needed immediate action. She called
her employees and told them that this should not happen again.
______________________________
2. In a garments company the manager is trying to find out the deviation between
the actual number of jeans produced and the desired number. He already
knows about the standard as the company has assigned him a definite quantity
of jeans to be produced. __________________________
3. Juan Dela Cruz wants to run his business in a different manner. He wants to
set standards to be achieved in both qualitative as well as quantitative terms.
He wants to judge the motivation, skill levels and satisfaction of the employees.
All these things will require qualitative standards. On the other hand, the
company will have to set quantitative standards for the number of units
produced.______________________
4. Liza prepares performance report of her sales representatives for the month of
May. She gathers all the necessary information to measure performance like
the number of unit sold as well as the market share of the product in the
market._______________
5. The manager of ABC fries and drinks notice some variances on their collection
day by day. The management decided to install CCTV camera to monitor the
activity of the store. Upon observation on the actual CCTV footage they find out
that there is a fraud commit by the cashier. Immediate the manager call the
attention of the concern personnel and corresponding sanction
imposed._____________________________
Assessment 2: Name the Controlling Methods and Techniques

Direction: Identify what controlling method and technique is being described below.
1. It is a technique of managerial control in which all operations are planned in
advance in the form of budgets and actual results are compared with budgetary
standards. _________________________
2. It is a control that takes place after an activity is done.
_____________________
3. It is control that prevents anticipated problems before actual occurrence of the
problems. _____________________________
4. It is the control of financial resources as they flow into the organization, are held
by the organization and flow out of the organization. ___________________
5. It is a control tool for identifying and measuring specific performance gaps and
areas for improvement. ____________________________

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V. RUBRIC FOR SCORING (if necessary)

5 pts Answers completely by citing 2 examples
3 pts Answers completely by citing 1 example
2 pts Answers completely without example
VI. ANSWER KEY

Activity 1
1. Controlling
2. The target volume of the company in a day is assembling of - 1,000 units of
air conditioners. Actual assembling of air condition per day is 800. The
company compared actual performance of each worker
Activity 2
1. Target volume assembly 1,000 units per day
2. Actual assembly of 800 units per day
3. Variance of 200 units
4. Redesign jobs
Assessment 1
1. Taking action
2. Comparing actual performance with standards
3. Setting standards
4. Measurement of actual performance
5. Taking actions
Assessment 2
1. Budgetary control
2. Feedback
3. Feedforward
4. Financial Control
5. Benchmarking
VII. REFERENCES
https://www.dreamstime.com/stock-illustration-books-management-marketing
accounting-isolated-white-background-finance-concept-d-render-image58476245
www.iedunote.com › controlling
Lucio B. Gomez, Organization & Management Quarter II Module 13 Leading


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Organization and Management

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

Organization and Management – Grade 11 Quarter 2 – LAS 6: Different Controlling Methods

Development Team of the Module

Writer : DANNA JEAN P. LATIGAY

Editor : ELIZABETH N. MACALE, APII

Reviewers : DARCY GUY Y. MAŃEBO, EPS

Illustrator : DANNA JEAN P. LATIGAY, TII

Layout Artist: DANNA JEAN P. LATIGAY., TII

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

LEARNING ACTIVITY SHEET 6

Name of Student: ____________________________________________________________

Learning Area – Grade Level: Organization and Management- Grade 11______________

Controlling helps managers monitor the effectiveness of their planning,

Controlling is a management function involves ensuring the work performance of

Why we need to Control?

To ensure that activities are completed in ways that lead to accomplishment of

What are the Steps in the Control Process?

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

Establishing standards - This means setting up of the target which needs to be

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

Benchmarking for Best Practices

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

1. What management function is discussed above?

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

Assessment 2: Name the Controlling Methods and Techniques

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

V. RUBRIC FOR SCORING (if necessary)

VI. ANSWER KEY

SCHOOLS DIVISION OFFICE OF CAMARINES NORTE

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