Principles of Management for

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Engineers ( UNIT- IV )

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B.Tech(CSE)
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VI-Semester
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Course Code:MS-
302
 Controlling

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Controlling in Management

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Controlling is a critical management function that involves measuring actual

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performance, comparing it against a standard, and taking corrective actions if
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deviations from the standard are found. This function ensures that
organizational goals are consistently being met in an efficient and effective
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manner.

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BVCOE, New Delhi
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Key Aspects of Controlling

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1. Establishing Standards: Setting performance standards that will serve as the basis for
comparison. These standards can be in terms of quantity, quality, cost, or time.

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2. Measuring Performance: Regular assessment of current performance against the established
standards. This measurement can be achieved through various means including financial
statements, productivity reports, and quality checks.
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3. Comparing Performance: Analyzing the deviations between actual performance and the
standards. This involves identifying the differences and determining their causes.

4. Taking Corrective Action: Implementing actions to correct deviations. This could involve
adjusting the performance or modifying the standards if they are found to be unachievable.

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BVCOE, New Delhi
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Examples from India

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1. Tata Motors
• Quality Control: Tata Motors has stringent quality control processes to ensure that all vehicles meet

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specific safety and performance standards before they leave the factory. The performance of these
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vehicles is continuously monitored through customer feedback and service reports. Any deviations
from expected quality standards lead to immediate corrective measures such as recalls or
modifications in the production process.
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2. Infosys
• Project Performance Tracking: Infosys utilizes advanced project management tools to control and
monitor project timelines, budget, and quality of deliverables. Regular status meetings help compare
the actual progress against the project plans. If a project is behind schedule or over budget, corrective
actions are taken, which may include reallocating resources or adjusting project scope to meet the
deliverables.
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BVCOE, New Delhi
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3. Reliance Industries Limited
• Financial Control: Reliance Industries employs a robust financial control system to monitor and

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manage its costs, revenues, and investments. Financial performance reports are generated regularly
and reviewed against the budgets. Variances are analyzed, and measures are taken to address any

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adverse deviations. This might involve cost-cutting measures, shifting investment strategies, or
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improving operational efficiencies.

4. Bharti Airtel
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• Customer Service Control: Bharti Airtel has a feedback mechanism to gauge customer
satisfaction with its telecom services. The company measures performance through customer
surveys and net promoter scores, comparing them against service benchmarks. Any issues
highlighted through these channels are addressed through service improvements or personnel
training, ensuring high levels of customer satisfaction.

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BVCOE, New Delhi
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Importance in Modern Business

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Controlling is vital for ensuring that an organization remains on a path that is aligned with its
strategic objectives. It allows management to intervene in operational activities in a timely

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manner, ensuring that the organization’s resources are being used efficiently and effectively.
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Moreover, in a rapidly changing business environment, such as that of India, controlling
provides the flexibility to adapt operations in response to market or technological changes.
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In conclusion, controlling is not just about correcting past mistakes but is a proactive measure
that helps anticipate issues and adjust strategies accordingly. This function is essential for
maintaining a competitive edge in the dynamic Indian market, where consumer preferences
and market conditions can change rapidly.

MOHIT TIWARI
BVCOE, New Delhi
 Controlling System

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Controlling, as a key management function, involves setting standards, measuring actual
performance, and taking corrective actions to ensure that organizational objectives are met. The

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controlling system and the process of controlling are essential for ensuring that activities are
completed in ways that lead to the achievement of organizational goals.

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Controlling System
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A controlling system refers to the structured set of procedures and tools used by organizations to
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monitor, compare, and correct their activities. It encompasses the mechanisms, processes, and
technologies that managers use to regulate and guide operations.

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BVCOE, New Delhi
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Components of a Controlling System:

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1. Control Environment: The overall attitude, awareness, and actions of directors and
management regarding the internal control system and its importance to the entity.

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2. Control Procedures: These include approval authorizations, verifications, reconciliations,
reviews of operating performance, security of assets, and segregation of duties.
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3. Monitoring and Reporting System: Tools and processes for tracking performance outcomes,
reporting deviations, and ensuring that previous control issues are corrected.

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BVCOE, New Delhi
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Process of Controlling

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The process of controlling involves several systematic steps to ensure effective management and achievement of
organizational goals:

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1. Establishing Performance Standards: Standards are based on the objectives of the organization and should
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be clear, measurable, attainable, relevant, and time-bound (SMART).
2. Measuring Actual Performance: Collecting and analyzing data to determine what the organization has
achieved versus the standards. Performance measurement can be quantitative or qualitative depending on the
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criteria set.
3. Comparing Performance Against Standards: This involves evaluating whether performance meets,
exceeds, or falls short of standards. The comparison identifies the magnitude and reasons for deviations.
4. Taking Corrective Actions: If there are deviations from the standards, corrective actions are necessary to
align performance with goals. This could involve retraining employees, modifying processes, or even
redefining standards.

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BVCOE, New Delhi
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Examples from India

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1. Tata Consultancy Services (TCS)
• Use of IT in Control Systems: TCS utilizes advanced information systems to monitor projects

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and processes. The IT-enabled control system allows for real-time tracking of billable hours, project
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milestones, and client feedback, facilitating immediate adjustments to enhance service delivery.

2. Hindustan Unilever Limited (HUL)

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• Supply Chain Control: HUL implements rigorous control systems in its supply chain to ensure
efficiency and minimize costs. Automated inventory tracking and vendor performance systems are
key components of its controlling system, ensuring product availability and operational efficiency.

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3. ICICI Bank

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• Financial Control Mechanisms: ICICI Bank uses comprehensive financial control systems

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including budgetary controls and financial reporting systems. These controls help the bank manage
its capital more effectively, comply with regulatory requirements, and prevent financial fraud.

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4. Reliance Industries oh
• Performance Dashboards: Reliance Industries employs performance dashboards to control and
monitor various aspects of its operations, from production metrics in its manufacturing divisions to
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sales figures in its retail outlets. These dashboards provide senior management with a real-time
overview of performance across different segments.

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BVCOE, New Delhi
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Conclusion

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The controlling system and process are vital for any organization to ensure that it is moving towards
its strategic goals efficiently and effectively. In India, where the market dynamics are fast-changing,

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organizations like TCS, HUL, ICICI Bank, and Reliance Industries leverage sophisticated controlling
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systems to stay ahead. These systems not only facilitate immediate corrective actions but also help
in strategic decision-making by providing insights into operational performance versus the set
objectives.
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BVCOE, New Delhi
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Requirements for Effective Control

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Effective control systems are essential for organizations to ensure that their operations align with
strategic objectives and that resources are used efficiently. The effectiveness of a control system

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depends on several key factors that must be integrated into its design and implementation.
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BVCOE, New Delhi
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Key Requirements for Effective Control

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1. Clear Objectives: The control system must be based on clear and achievable objectives. These objectives should
be well communicated to all relevant stakeholders to ensure alignment and focus.

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2. Understandable Standards: The standards used for measuring performance must be clear, quantifiable, and
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understandable by all employees who are subject to the control system.

3. Timely Information: The control system must provide timely feedback regarding performance and deviations
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from standards. This allows for quick corrective actions, which is crucial in dynamic business environments.

4. Flexibility: The system should be flexible enough to adjust to significant changes in the operating environment.
Rigid control systems can become obsolete in rapidly changing industries.

5. Integration: The control system should be integrated with other management functions like planning, organizing,
and staffing to ensure coherence and support across departments.

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BVCOE, New Delhi
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Conclusion

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Effective control is crucial for the success of any organization, providing a means to direct,
monitor, and adjust operations towards achieving strategic goals. In India, where diverse

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industries and dynamic market conditions prevail, organizations like Infosys, Tata Steel, Reliance
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Industries, and HDFC Bank demonstrate how tailored, integrated, and flexible control systems
can drive operational efficiency and adaptability.
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MOHIT TIWARI
BVCOE, New Delhi
 Planning-Control Link

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The planning-control link is a fundamental concept in management that connects the planning and
controlling functions in a continuous loop. This linkage ensures that an organization not only sets

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appropriate objectives but also monitors and adjusts its strategies to meet these objectives
effectively. The effectiveness of this link is crucial for organizational success, as it allows for

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dynamic adjustments based on performance feedback and external changes.
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MOHIT TIWARI
BVCOE, New Delhi
 Understanding the Planning-
Control Link

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1. Planning Phase:
• Definition: Planning involves setting goals, determining actions to achieve the goals, and mobilizing

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resources to execute the actions.
• Purpose: The purpose is to establish clear objectives and formulate strategies to achieve them. This

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phase sets the direction for the organization.
2. Control Phase: oh
• Definition: Controlling involves monitoring the execution of plans and making adjustments to align the
outcomes with the planned objectives.
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• Purpose: The purpose of control is to ensure that the organization is on track to meet its goals and to
implement corrective measures when necessary.
3. Feedback Mechanism:
• Role of Feedback: Feedback in the planning-control link acts as a bridge that connects the outcomes of
control to new planning cycles. It provides essential data on the effectiveness of strategies and the
accuracy of plans.
• Adjustments: Based on feedback, organizations can modify their plans to address new challenges,
leverage opportunities, or rectify deviations from expected outcomes.
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Cycle of the Planning-Control Link

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1. Set Objectives: Define clear and measurable targets that align with the organization’s
strategic vision.

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2. Develop Plans: Create detailed action plans that specify the steps needed to achieve the
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3. Implement Plans: Execute the strategies as per the planning.
4. Monitor Performance: Continuously assess performance against the objectives.
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5. Analyze and Adjust: Analyze deviations and take corrective actions. This step feeds back into
the planning phase, where plans may be adjusted based on what has been learned.

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Examples from India

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1. Reliance Industries Limited:
•Planning: Reliance plans its expansion projects, such as entering new markets like telecom with Jio, based
on extensive market research.

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•Control: It monitors market share growth, customer acquisition rates, and service quality.
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•Feedback and Adjustment: Based on performance data, Reliance adjusts its strategies—this might involve
enhancing network infrastructure or revising marketing strategies to boost customer engagement.
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2. Tata Consultancy Services (TCS):
•Planning: TCS plans its IT projects and service expansions by forecasting client needs and technology
trends.
•Control: Project progress and client satisfaction are regularly monitored against performance standards.
•Feedback and Adjustment: Feedback from these evaluations helps TCS refine its service offerings or
improve project management methodologies, ensuring better alignment with client expectations.

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3. Infosys:

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•Planning: Infosys sets annual growth targets based on industry trends and client consultations.

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•Control: It controls through quarterly reviews where performance metrics such as revenue
growth, client acquisition, and operational efficiency are evaluated.

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•Feedback and Adjustment: Based on the quarterly performance data, Infosys may adjust its
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operational strategies or client engagement models to better meet its yearly targets.

Conclusion
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The planning-control link is essential for maintaining the alignment of operations with strategic
objectives. It ensures that organizations, especially dynamic ones like those in India, can adapt to
changes and refine their strategies based on actual performance and external conditions. This
adaptive approach is crucial for thriving in competitive and rapidly changing markets, allowing
businesses to stay focused and efficient in achieving their goals.
MOHIT TIWARI
BVCOE, New Delhi
 The Process of Control

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The process of control in management is critical to ensure that an organization's activities are
aligned with its plans and objectives. It involves a systematic approach to setting performance

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standards, measuring actual performance, comparing this performance against the standards,
identifying deviations, and implementing corrective actions.

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Steps in the Process of Control

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1. Setting Performance Standards:
Standards are quantifiable benchmarks against which actual performance is measured. These standards

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must be clear, measurable, achievable, relevant, and time-bound (SMART).
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•Example: A manufacturing company in India might set a standard to produce 1,000 units of a product
each day with a defect rate of less than 1%.
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2. Measuring Actual Performance:
The actual performance of organizational activities is measured using appropriate tools and techniques.
This measurement should be regular and systematic to provide accurate and timely data.
•Example: An Indian retail chain could use point-of-sale (POS) systems to track daily sales and
inventory levels across its stores.

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3. Analyzing Deviations:
When performance deviates from the standards, it's crucial to determine the causes of these deviations. This

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analysis helps in understanding whether the deviations are due to unforeseen external factors, internal
procedural issues, or perhaps unrealistic standards.

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•Example: If an Indian IT service provider finds that project delivery times are consistently exceeding the set
standards, an analysis may reveal that the cause is unrealistic scheduling, insufficient resources, or perhaps
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scope creep in projects.
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4. Taking Corrective Actions:
Based on the analysis of deviations, appropriate corrective actions are taken to align performance with the
standards. This could involve adjusting the strategies, methods, or even the standards themselves if they are
found to be unattainable.
•Example: If a pharmaceutical company in India notices that the purity level of a drug compound does not meet
the set standard, it might need to adjust its manufacturing process, retrain employees, or inspect and possibly
replace the raw material used.

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Examples of Control in Indian Companies

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1. Tata Steel:
Tata Steel implements a rigorous process of control in its operations to ensure quality and efficiency.

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The company sets high standards for raw material quality, production processes, and final product
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standards. Regular audits and inspections help measure performance, and any deviations lead to
immediate corrective actions such as adjustments in the production process or additional quality
checks.
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2. Bharti Airtel:
Bharti Airtel uses control processes to manage its network operations and customer service effectively.
The company sets standards for network uptime and customer satisfaction scores. Performance metrics
are constantly monitored, and service management teams are tasked with addressing any issues that
arise, ensuring that services remain robust and customer complaints are resolved swiftly.

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3. Infosys:

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Infosys, one of India's leading IT companies, employs a detailed control process to oversee its

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numerous IT projects. The company sets clear benchmarks for project budget, timeline, and
quality at the planning stage. Project managers regularly report on these metrics, and deviations

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are managed through corrective actions such as reallocating resources or modifying project
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scopes to ensure alignment with client expectations and contract terms.

Conclusion
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The process of control is indispensable in the management of any organization. It ensures that an
organization not only sets plans and objectives but also monitors progress towards these goals
and makes adjustments as necessary. In the context of India, with its fast-paced economic
environment and competitive business landscape, effective control processes are vital for
companies to maintain their operational integrity and achieve strategic success.
MOHIT TIWARI
BVCOE, New Delhi
 Control in management

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Control in management is a critical function that helps ensure that organizational
activities align with planned outcomes. It can be implemented in various forms

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depending on the phase of activities, focus, and timing of intervention. Understanding

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different types of control is essential for managers to apply the most effective methods
to monitor and guide organizational operations.
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1. Preventive Control
•Definition: Preventive control is designed to deter problems before they occur. These controls focus on

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proactive measures and are implemented at the beginning of a process.
•Example: A common example in India is the use of quality control in manufacturing. Companies like Tata

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Motors implement rigorous supplier qualification and raw materials inspection processes to prevent quality
issues in vehicle production. This ensures that only high-quality components are used, minimizing the risk of
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defects in the final products.
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2. Concurrent Control
•Definition: Also known as real-time or steering controls, these are used while an activity is ongoing. They
allow managers to correct deviations as they occur.
•Example: In the service sector, particularly in hotels like the Taj Group, concurrent control is exercised
through customer feedback forms and real-time service quality monitoring. If a guest's experience begins to
deviate from the hotel's service standards, immediate corrective actions can be taken, such as offering
complimentary services or quick resolution of their issues.

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3. Feedback Control
•Definition: Feedback control involves gathering information about a completed activity, evaluating it, and

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using this information to guide future performance.
•Example: Infosys, a giant in the IT industry, utilizes feedback control by reviewing completed software

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development projects to identify what went well and what didn’t. This feedback is then used to improve
processes and training for future projects, enhancing efficiency and effectiveness in software delivery.
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4. Feedforward Control
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•Definition: Feed forward control involves monitoring inputs rather than outputs to anticipate and prevent
potential problems before they affect the system. It is proactive and preventive but focuses more on the input
side.
•Example: Pharmaceutical companies in India, such as Sun Pharma, implement feedforward control by
monitoring the storage conditions of sensitive materials during transit. Sensors and IoT devices are used to
ensure temperature and humidity are maintained within required parameters to prevent spoilage and ensure
compliance with safety standards.

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5. Financial Control
•Definition: Financial controls involve the management of costs, revenues, and assets. They are critical for

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ensuring the financial health of an organization.
•Example: Reliance Industries employs financial controls through budgeting and financial reporting systems.

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The company uses variance analysis to compare actual spending against budgets and takes corrective
actions to address any discrepancies.
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6. Budgetary Control
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•Definition: Budgetary control is a method where budgets are prepared in advance and the actual results are
compared with budgetary standards. This allows for corrective action in the management of company
finances.
•Example: Indian Railways, one of the world's largest railway networks, uses budgetary controls to manage
its massive operating expenses. Budgets are set for different departments, and spending is monitored
against these budgets to control costs and improve efficiency.

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7. Statistical Control
•Definition: Statistical controls use statistical methods to monitor variability in process

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performance and identify instances that fall outside of acceptable limits.
•Example: IT companies in India, such as Wipro, use statistical control in their quality assurance

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processes. Techniques like Six Sigma are employed to reduce errors in coding and project
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implementation by identifying and removing the causes of defects.
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8. Management Information Systems (MIS) Control
•Definition: MIS controls involve the use of information systems to collect, process, and report
data that managers use to make decisions and control operations.
•Example: HDFC Bank utilizes MIS to control its lending processes. The system collects data on
loan applications, customer credit scores, and repayment histories to help managers assess risk
and make informed lending decisions.

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Conclusion

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The diverse types of control mechanisms are essential for effective management across various
sectors of the Indian economy. Whether it's manufacturing, IT, pharmaceuticals, or banking,

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each type of control serves to align the actual performance with organizational goals, ensuring
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operational efficiency and strategic success.
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MOHIT TIWARI
BVCOE, New Delhi
 The Budget as a Control Technique

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In management, a budget is one of the most fundamental and widely used control techniques. It

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serves as a financial blueprint for an organization, laying out detailed plans for the anticipated
revenues and expenditures over a specific period. By setting financial targets and limits, budgets
act as a benchmark against which actual financial performance is measured and controlled.

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BVCOE, New Delhi
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How Budgets Control Organizational Activities

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1. Planning Tool:
Budgets are developed as part of the planning process, where financial goals are aligned with operational targets. This
integration ensures that spending is planned and controlled according to the strategic objectives of the organization.

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2. Allocation of Resources:
They dictate how resources are allocated among various departments, projects, or initiatives, ensuring that resources are used
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efficiently and aligned with organizational priorities.
3. Performance Measurement:
By comparing actual financial performance against the budget, managers can monitor organizational performance, identify
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deviations, and understand the underlying causes of these variances.
4. Corrective Actions:
Budgets facilitate corrective actions by providing a clear framework within which financial decisions are made. If actual
spending exceeds budgeted amounts, measures can be taken to adjust operations, reduce costs, or reallocate resources.
5. Motivation:
They also serve as a motivational tool by setting performance benchmarks for departments and individuals, often linked to
rewards or incentives for achieving budget targets.

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Budget Types in Control

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1. Operating Budget:
Covers the income-generating activities of an organization, including revenues and expenses

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related to the core business operations.
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Focuses on investments in long-term assets, such as buildings, machinery, and technology, and
includes the sources of funds used to finance these assets.
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3. Cash Flow Budget:
Projects the cash inflows and outflows over a period, helping manage liquidity and ensuring that
there is enough cash to cover obligations.
4. Master Budget:
A comprehensive budget that includes all of an organization’s individual budgets (operating,
capital, cash flow) and provides a complete financial overview.

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Examples from India

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1. Tata Motors:
•Capital Budgeting: Tata Motors uses capital budgeting to control its investments in new
manufacturing facilities and R&D. By evaluating potential projects through rigorous financial

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analysis, the company ensures that it invests in projects that yield suitable returns and align with
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long-term strategic goals.
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2. Infosys:
•Operating Budget: Infosys meticulously plans its operating budgets to manage costs related to
software development projects, including labor, technology, and overheads. This budgeting helps
control project costs and improve profitability by monitoring expenditures and ensuring they do
not exceed planned limits.

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3. Reliance Industries:

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•Cash Flow Budgeting: Given its diverse operations, Reliance Industries implements strict cash flow
budgeting to manage the liquidity needs of its various business units. This ensures that each unit has

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sufficient funds to operate effectively while optimizing the use of corporate funds.

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4. State Bank of India (SBI):
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•Master Budget: As the largest public sector bank in India, SBI prepares a master budget that integrates
various smaller budgets across its vast network. This comprehensive budget helps SBI control overall financial
performance, making it easier to implement corrective measures across the organization.
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Conclusion

Budgeting is an essential control technique that helps organizations manage their finances effectively, ensure
the efficient use of resources, and achieve their financial and operational goals. In India, where economic
conditions can be volatile and market dynamics complex, effective budgeting is crucial for organizations like
Tata Motors, Infosys, Reliance Industries, and SBI to maintain control over their operations and steer towards
long-term success.
MOHIT TIWARI
BVCOE, New Delhi
 Information Technology in Controlling

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Information Technology (IT) plays a pivotal role in the control processes of modern organizations.
By integrating IT systems into the controlling function, businesses can achieve greater accuracy,

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real-time monitoring, and enhanced decision-making capabilities. This integration facilitates the
effective management of operations, finances, and strategic objectives.

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How IT Enhances the Control Function

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1. Data Collection and Management:
IT systems automate the collection, storage, and processing of vast amounts of data. This

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capability is crucial for maintaining accurate and comprehensive records that are essential for
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effective control.
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2. Real-Time Monitoring and Reporting:
Advanced IT systems enable real-time monitoring of various parameters across the
organization. Real-time reporting tools can instantly alert managers to deviations or anomalies,
allowing for quicker corrective actions.

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3. Performance Dashboards and Analytics:

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IT enables the creation of interactive dashboards that provide visualizations of key

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performance indicators (KPIs). These tools allow managers to analyze trends, compare
metrics against benchmarks, and forecast future performance.

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4. Automated Control Systems: oh
Automation of control processes reduces the likelihood of human error and increases
the efficiency of control operations. Automated systems can enforce rules, check compliance,
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and manage exceptions without manual intervention.

5. Predictive Analytics:
By utilizing machine learning and statistical techniques, IT systems can predict potential
issues before they occur. Predictive analytics can be used to optimize operations, anticipate
market changes, and mitigate risks.
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BVCOE, New Delhi
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Examples from India

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1. Tata Steel:

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Integrated Control Systems: Tata Steel uses advanced IT solutions to control its manufacturing processes. The
company employs automation and robotics controlled by IT systems to ensure precision and efficiency in its

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operations. Real-time data from these systems enables immediate adjustments to improve product quality and
operational efficiency.

2. Infosys:
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Project Management Tools: Infosys utilizes IT project management tools that integrate time tracking, resource
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allocation, and budget management to control software development projects. These tools provide managers with the
ability to monitor project progress against plans and make necessary adjustments to keep projects on track.

3. Reliance Industries:
Supply Chain Management: Reliance leverages IT to control its extensive supply chain operations across different
sectors. Through the use of Enterprise Resource Planning (ERP) systems, Reliance manages inventory levels,
procurement processes, and logistics to reduce costs and improve service levels.

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4. ICICI Bank:

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• Financial Control Systems: ICICI Bank uses IT systems for real-time monitoring of transactions to
detect and prevent fraud. The bank employs sophisticated algorithms that can identify unusual patterns

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indicative of fraudulent activities, thereby controlling financial risks.

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5. Bharti Airtel:
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Customer Service Controls: Bharti Airtel utilizes IT systems to monitor and control the quality of
service provided to customers. These systems track service performance metrics and customer feedback in
real-time, enabling quick resolution of issues and improvements in service delivery.
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Conclusion

In the context of Indian companies, the integration of IT into controlling functions has led to significant
improvements in efficiency, accuracy, and responsiveness. As businesses continue to expand and operate in
increasingly complex environments, the role of IT in control processes becomes even more critical. These
technological advancements not only support operational control but also enhance strategic decision-making,
giving companies a competitive edge in their respective industries.
MOHIT TIWARI
BVCOE, New Delhi
 Productivity in business

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Productivity in business terms refers to the efficiency with which inputs (such as

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labor, capital, materials, and technology) are converted into outputs (goods and
services). It is a crucial measure of performance that impacts an organization's

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profitability, competitive position, and overall success. Higher productivity indicates
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that more output is produced with the same amount of inputs, which often leads to
lower costs and higher revenues.
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Factors Affecting Productivity

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1. Technology and Innovation: The adoption of new technologies and innovative processes
can significantly enhance productivity by automating tasks and improving operational

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efficiencies. oh
2. Employee Skills and Training: Well-trained and skilled employees can perform tasks more
efficiently, contributing to higher productivity.
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3. Work Environment: A conducive work environment that promotes employee well-being can
enhance motivation and efficiency.
4. Quality of Inputs: Higher quality of materials and tools can lead to better outputs and fewer
wastages, improving productivity.
5. Management Practices: Effective management can optimize resource allocation,
streamline processes, and motivate employees, all of which enhance productivity.

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Measuring Productivity

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Productivity can be measured as the ratio of outputs to inputs. In a manufacturing context, this might be the
number of units produced per labour hour. In services, it could be the value of services provided per

it
employee.

Examples from India

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1. Tata Consultancy Services (TCS)
• Automation and Software Tools: TCS has significantly enhanced its productivity by investing in
automation technologies and sophisticated software tools. These technologies allow TCS to handle large-
scale IT projects more efficiently, reducing labour costs and improving service delivery speed.
• Skill Development: The company runs extensive training programs to ensure that its workforce is
skilled in the latest technologies, which enhances their productivity.

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2. Reliance Industries
• Integration and Optimization: Reliance Industries uses state-of-the-art refineries and integrated

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petrochemical complexes which are among the most efficient in the world. The company’s refineries, for
example, are configured to process a wide range of crude oils and manufacture high-value products, which

it
maximizes output and minimizes waste.
• Innovative Practices: Reliance continuously explores innovative ways to enhance its operational
oh
efficiencies, such as using advanced catalysts for better chemical yields.
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3. Amul (The Gujarat Co-operative Milk Marketing Federation)
• Supply Chain Efficiency: Amul has streamlined its supply chain from milk collection to processing
and distribution, which has significantly increased its productivity. The cooperative's use of cold storage
technology and logistics management ensures minimal spoilage and timely delivery of dairy products.
• Farmer Training Programs: Amul also invests in farmer education and cattle management
programs, which improve the quality and quantity of milk production at the source.

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4. Maruti Suzuki

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• Manufacturing Excellence: Maruti Suzuki’s productivity is enhanced through lean
manufacturing techniques, just-in-time inventory management, and continuous process

it
improvement practices, making it one of the most efficient car manufacturers in India.
oh
• Quality Control: Stringent quality control measures ensure that the productivity gains are
not at the expense of product quality.
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5. Infosys

• Digital Transformation Services: Infosys enhances productivity for its clients through
digital transformation services, enabling them to automate routine tasks and optimize various
business processes. For itself, Infosys invests in cloud computing and AI to enhance its own
operational efficiencies.
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Conclusion

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Productivity is a vital measure of economic efficiency and a crucial determinant of an

it
organization’s competitiveness and profitability, especially in a rapidly growing and
oh
competitive market like India. By focusing on technology, employee training, and
efficient management practices, companies like TCS, Reliance, Amul, Maruti Suzuki,
M
and Infosys not only boost their productivity but also set industry benchmarks in
operational excellence.

MOHIT TIWARI
BVCOE, New Delhi
 Problems and Management

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Problems and Management refers to the challenges organizations face in their operations
and the strategies managers use to address these issues. Effective problem management is

Ti
crucial for maintaining organizational efficiency, achieving strategic objectives, and ensuring
long-term sustainability. Problems in management can range from operational inefficiencies

it
and technological disruptions to strategic misalignments and human resource issues.
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Types of Management Problems

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1. Operational Problems:

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Issues related to the day-to-day functions of the business, such as production bottlenecks, supply chain
disruptions, or quality control failures.

it
2. Financial Problems:
Challenges associated with managing an organization's finances, including cash flow issues, excessive debt, or
inadequate funding.
3. Strategic Problems:
oh
Concerns related to the overall direction of the organization, such as entering new markets, product development,
M
or competitive strategy.
4. Human Resource Problems:
Issues pertaining to the workforce, including hiring, retention, employee satisfaction, and performance
management.
5. Technological Problems:
Challenges related to the adoption, integration, and security of technology within the organization.
6. Legal and Regulatory Problems:
Compliance with laws and regulations that govern business operations.
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Strategies for Problem Management

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Ti
1. Problem Identification and Analysis:
Recognizing issues early and analyzing them to understand their root causes.
2. Development of Alternative Solutions:

it
Generating multiple solutions to address the identified problems, considering various perspectives and
potential impacts.
3. Decision Making:
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Choosing the most effective solution based on a thorough evaluation of alternatives.
M
4. Implementation:
Executing the chosen solution, involving resource allocation, task assignment, and process management.
5. Monitoring and Evaluation:
Continuously tracking the outcomes of the solution to assess its effectiveness and making necessary
adjustments.

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 Examples from India

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1. Jet Airways (Operational and Financial Problems):
• Issue: Jet Airways faced significant financial and operational issues, including high debt levels

it
and inefficiencies in operations, leading to its eventual bankruptcy.
• Management Strategy: Efforts included cost-cutting measures, attempts to secure additional
oh
funding, and negotiations for stakeholder agreements, which ultimately failed to save the airline but are
illustrative of complex crisis management efforts in business.
M
2. Tata Motors (Strategic and Technological Problems):
• Issue: Tata Motors encountered strategic challenges in domestic and international markets, such
as declining sales in its passenger vehicle segment and technological adaptation to electric vehicles.
• Management Strategy: Tata Motors has been actively investing in electric vehicle technology
and restructuring its operations to focus more on mobility solutions and less on traditional car
manufacturing to revitalize its business model.
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3. Infosys (Human Resource Problems):

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• Issue: Infosys has faced challenges in talent acquisition and retention, especially with the rapid
technological changes and the need for skilled labor in IT services.

it
• Management Strategy: Infosys has implemented various employee engagement and retention programs,
oh
including competitive compensation, continuous learning opportunities, and career development initiatives to
maintain a skilled and motivated workforce.
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4. Bharti Airtel (Legal and Regulatory Problems):

• Issue: The telecom sector in India, including Bharti Airtel, faces continuous legal and regulatory challenges,
such as spectrum allocation disputes and pricing wars.
• Management Strategy: Airtel has engaged in proactive lobbying, legal battles, and strategic compliance to
navigate the regulatory landscape effectively. It also focuses on innovation in services and pricing strategies to
stay competitive.

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5. Tata Consultancy Services (TCS): TCS utilizes a matrix structure to manage its extensive global

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operations, effectively handling the complexities of serving various industries and technologies. This

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structure allows flexibility and efficient utilization of resources across functional and project-based needs.

Organization Process

it
•Definition: oh
Organization processes refer to the official and unofficial activities conducted to achieve organizational goals.
These include management processes, operational processes, and supporting processes.
M
•Characteristics:

Standardized Procedures: Involves routine activities that are designed to achieve efficiency and
effectiveness.
Adaptation to Change: Includes mechanisms to adapt processes in response to environmental changes.
Integration: Ensures that various processes within the organization work in harmony to achieve the
organizational goals.
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Conclusion

Ti
Effective problem management in organizations involves a systematic approach to identifying

it
issues, developing solutions, and implementing strategies that mitigate negative impacts while
enhancing operational efficiency and strategic alignment. Indian companies across various
oh
sectors, such as Jet Airways, Tata Motors, Infosys, and Bharti Airtel, provide real-world
examples of how diverse management problems can be and the strategies that can address
M
them. These examples underscore the importance of agility, strategic thinking, and continuous
improvement in business management.

MOHIT TIWARI
BVCOE, New Delhi
 Overall Performance Control

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Control of overall performance refers to the comprehensive oversight and
management practices aimed at ensuring that an organization's activities align with its

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strategic goals and objectives. This type of control involves a holistic approach,

it
integrating various management functions and control mechanisms to monitor and
improve the performance of the entire organization.
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Key Aspects of Overall Performance Control

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Ti
1. Strategic Alignment:
Ensuring that all organizational activities support the strategic objectives. This requires a clear

it
understanding of the organization's mission, vision, and strategic goals.

2. Performance Measurement:
oh
Utilizing various metrics and indicators to assess the performance of the organization as a whole.
M
These measurements often include financial indicators (like ROI, profit margins), operational indicators
(like production efficiency, quality rates), and human resource indicators (like employee engagement
and turnover rates).

3. Feedback Systems:
Implementing robust feedback mechanisms to gather insights from all organizational levels. This
feedback helps identify successes, pinpoint issues, and understand the impact of decisions.
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4. Corrective Actions:
Taking timely and effective actions to address any deviations from expected performance.

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This could involve making operational adjustments, strategic pivots, or personnel changes.

it
5. Continuous Improvement:
oh
Emphasizing a culture of continuous improvement where strategies, processes, and
practices are regularly evaluated and refined to enhance performance.
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6. Integrated Technology Systems:
Leveraging technology to streamline operations, improve communication, and provide real-
time data for better decision-making.

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BVCOE, New Delhi
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Examples from India

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1. Reliance Industries Limited:

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• Strategic and Operational Control: Reliance Industries practices comprehensive performance control through
its integration of various business segments. Using a centralized control system, Reliance monitors and manages its
diverse operations, from petrochemicals to telecommunications. It uses performance data to make informed strategic

it
decisions, such as investing in Jio Platforms to capitalize on the digital growth wave in India.
oh
•Technology Integration: Reliance has heavily invested in digital technologies to enhance its operational efficiencies
and customer engagement, particularly in its retail and telecom sectors.
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2. Tata Consultancy Services (TCS):
• Performance Measurement Systems: TCS employs an advanced performance management system that
tracks a wide range of metrics from project delivery times and client satisfaction to employee productivity and
innovation. This comprehensive monitoring allows TCS to maintain high service standards and adapt to changing
market demands.
• Continuous Improvement: TCS has implemented quality management frameworks like the Tata Business
Excellence Model (TBEM) and Six Sigma, which facilitate continuous performance improvements across all
organizational levels.
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3. HDFC Bank:

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• Financial Performance Control: HDFC Bank controls its overall performance by closely monitoring
financial metrics such as net interest margin, cost-to-income ratio, and asset quality. These indicators help
the bank manage risks and optimize returns, ensuring financial stability and shareholder value.

it
• Regulatory Compliance: As a leading financial institution, HDFC ensures strict compliance with
oh
regulatory requirements, which is crucial for controlling overall performance in the heavily regulated banking
sector.
M
4. Infosys:

• Global Delivery Model: Infosys controls its overall performance by leveraging its Global Delivery Model,
which optimizes resource utilization and service delivery across global markets. The model provides a
framework for consistently high-quality and cost-effective services.
• Innovation and R&D: Infosys invests significantly in research and development to stay ahead in
technology services, using performance insights to guide its innovation efforts.

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Conclusion

Ti
Controlling overall performance is a dynamic and complex process that requires an integrated
approach across various organizational dimensions. In India, leading companies like Reliance,

it
TCS, HDFC Bank, and Infosys demonstrate how effective performance control can drive
oh
organizational success by aligning operations with strategic goals, adapting to external changes,
and continuously seeking improvements. These practices not only enhance competitiveness but
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also ensure sustainability in a rapidly evolving market environment.

MOHIT TIWARI
BVCOE, New Delhi
 Direct and Preventive Control

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In management, controls are mechanisms put in place to guide operations towards predetermined objectives.
Direct control and preventive control represent two critical aspects of these mechanisms, each playing a

Ti
unique role in ensuring organizational effectiveness and efficiency.

it
Direct Control
oh
•Definition: Direct control involves the active monitoring and adjustment of ongoing activities. It is hands-on
and immediate, allowing managers to correct deviations as they occur in real-time.
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•Characteristics:

1. Immediate Feedback: Provides instant feedback on performance relative to standards.

2. High Involvement: Requires active involvement by management to oversee operations and make
necessary adjustments.
3. Action-Oriented: Focuses on taking immediate actions to correct any deviations from the planned
course.
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Example from India:

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1. Tata Steel: In its manufacturing operations, Tata Steel employs direct control by monitoring
the production process through real-time data capture and analysis. If production metrics fall

it
below the set thresholds—for example, if the output rate decreases or the defect rate
oh
increases—immediate corrective measures are implemented. This might include adjusting
machinery, changing workflows, or reassigning tasks among workers to ensure that
M
production targets and quality standards are met.

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Preventive Control

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•Definition: Preventive control aims to identify and mitigate potential risks before they become
actual problems. It focuses on establishing procedures and standards designed to prevent errors

it
and deviations.
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•Characteristics:
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1. Proactivity: Involves identifying potential problems and implementing measures to
prevent them.
2. Risk Management: Integrates risk assessment into process planning and execution.
3. Systematic Planning: Involves thorough planning and system setups that aim to
eliminate or reduce the occurrence of undesired events.

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Example from India:

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Infosys: As a global IT services provider, Infosys implements preventive controls in its

it
project management practices. This includes rigorous planning phases where
potential risks are identified and mitigated through strategic resource allocation,
oh
comprehensive training programs, and advanced software tools. For example, Infosys
uses predictive analytics to identify project bottlenecks before they impact the timeline
M
or budget, allowing for preemptive resource adjustments or client negotiations.

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Integration of Direct and Preventive Controls

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Organizations often integrate both direct and preventive controls to create a comprehensive control system. While

Ti
preventive controls help in reducing the likelihood of errors and deviations, direct controls facilitate immediate
corrective actions when deviations occur. This integrated approach ensures both the prevention of foreseeable issues

it
and the swift correction of unforeseen problems, thereby maintaining operational integrity and achieving strategic
goals.

Combined Example from India:

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1. Reliance Industries Limited:

• Preventive Control: Reliance Industries conducts extensive risk assessments and scenario planning for its refinery
operations to pre-emptively address potential safety and operational risks. This includes regular maintenance
schedules, safety drills, and the implementation of high-tech monitoring systems to predict equipment failures.
• Direct Control: On the operational front, Reliance Industries uses control rooms equipped with state-of-the-art
systems to monitor refinery operations in real-time. Operators can directly adjust processes, control flows, and respond
to any alerts or anomalies immediately, ensuring smooth operation and high efficiency.
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Conclusion

Ti
The use of direct and preventive controls is essential in maintaining operational

it
efficiency and safeguarding against potential risks. In dynamic markets like India,
where industries face rapid changes and diverse challenges, the strategic
oh
implementation of these controls is vital. Companies like Tata Steel, Infosys, and
Reliance Industries demonstrate how effectively combining direct and preventive
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controls can lead to enhanced operational performance, risk mitigation, and sustained
business success.

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Financial Controls

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Financial controls are systems, processes, and procedures that are implemented by organizations to manage finances,

Ti
safeguard assets, ensure the accuracy of financial records, and comply with financial regulations. These controls are
crucial for enhancing the reliability of financial reporting, preventing fraud, and optimizing the financial performance of

it
an organization.

Key Aspects of Financial Controls

• Budgetary Control:
oh
Involves monitoring financial expenditures and revenues against budgets. This control helps ensure that the
M
organization does not exceed its spending limits and that all expenditures are authorized and planned.
• Internal Auditing:
An independent appraisal function established within an organization to examine and evaluate its activities as a
service to the organization. It is a critical component of financial control as it ensures compliance with laws, policies,
and procedures.
• Financial Reporting:
Systems for collecting, recording, analyzing, and presenting financial information. Accurate financial reports are
essential for internal decision-making and for meeting regulatory requirements.
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• Segregation of Duties:
Dividing responsibilities among different people to reduce the risk of error or inappropriate actions. No

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individual should control all key aspects of a financial transaction or event.

it
• Reconciliation:
Regularly matching the balances in accounting records with external sources such as bank statements,
oh
to verify the accuracy of transactions.
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• Access Controls:
Implementing security measures that limit access to financial information and handling to authorized
personnel only.

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Examples of Financial Controls from India

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1. Infosys:

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• Automated Financial Systems: Infosys utilizes advanced ERP systems that integrate financial reporting,
budgeting, and auditing. These systems ensure that financial processes are transparent and consistent across all

it
levels of the organization, reducing the risk of errors or fraud.
• Regular Audits: Infosys conducts regular internal and external audits to ensure compliance with financial
oh
regulations and internal standards. These audits help identify any discrepancies and implement corrective
measures promptly.
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2. Tata Motors:
• Budgetary Controls: Tata Motors employs rigorous budgetary controls where all departmental expenditures
must be approved against the allocated budget. This is monitored through a centralized financial system that
tracks and reports expenditures in real-time.
• Segregation of Duties: The company practices strict segregation of duties in its financial operations. For
example, the roles of personnel responsible for authorizing payments, recording transactions, and reconciling
balances are distinctly separated to prevent fraud and errors.

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3. State Bank of India (SBI):

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• Reconciliation Processes: SBI has robust systems in place for daily reconciliation of transactions across
its branches. This ensures that all transactions are accounted for and that there is no mismanagement of
funds.

it
• Access Controls: As a financial institution, SBI implements stringent access controls to protect sensitive
oh
financial information. Only authorized personnel have access to critical financial systems, and there are
multiple layers of authentication to safeguard against unauthorized access.
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4. Reliance Industries Limited:

• Financial Reporting Controls: Reliance Industries ensures comprehensive financial control through
detailed and systematic financial reporting. The company uses state-of-the-art financial software to generate
precise financial reports that help in strategic decision-making and regulatory compliance.
• Internal Controls: The company has a dedicated internal controls team that monitors compliance with
financial processes, evaluates the effectiveness of existing financial controls, and identifies areas for
improvement.
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Conclusion

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Financial controls are fundamental to the integrity and efficiency of an organization's financial
operations. They play a crucial role in preventing and detecting fraud, ensuring the accuracy of

it
financial statements, and helping businesses in India like Infosys, Tata Motors, SBI, and
oh
Reliance Industries to comply with financial regulations and meet their strategic objectives.
Effective financial controls not only protect the organization's assets but also enhance its
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performance and shareholder value in the long run.

MOHIT TIWARI
BVCOE, New Delhi
 Tools for Measuring Organizational Performance

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Organizational performance measurement is essential for businesses to assess how effectively
they are achieving their strategic goals. There are various tools and techniques used to

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measure performance across different dimensions—financial, operational, strategic, and human
resources. Effective performance measurement helps in making informed decisions, improving

it
efficiency, and driving business growth.
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Key Tools for Measuring Organizational Performance

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1. Key Performance Indicators (KPIs):
• Definition: KPIs are quantifiable measurements that reflect the critical success factors of an organization.
• Use: They vary across industries and departments but typically include metrics related to profitability, efficiency,

it
quality, and customer satisfaction.
• oh
Example: In Indian telecom companies like Bharti Airtel, common KPIs include customer churn rate, average
revenue per user (ARPU), and network downtime.
M
2. Balanced Scorecard:
• Definition: A strategic planning and management system used to align business activities to the vision and
strategy of the organization, improve internal and external communications, and monitor organization performance
against strategic goals.
• Use: It balances financial measures with performance metrics from three additional perspectives: customers,
internal processes, and learning and growth.
• Example: Infosys uses a balanced scorecard to track financial performance while also monitoring customer
satisfaction, internal process efficiency, and learning and innovation.

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3. Benchmarking:
• Definition: The process of comparing one's business processes and performance metrics to industry

Ti
bests or best practices from other industries.
• Use: Dimensions typically measured are quality, time, and cost.
•

it
Example: Tata Motors often engages in benchmarking against global leaders in the automotive
industry to identify areas for improvement in production, product quality, and customer service.
oh
4. Financial Ratios:
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• Definition: Financial ratios involve the use of financial metrics to gauge a company's performance.
• Use: Common ratios include return on assets (ROA), return on equity (ROE), debt-to-equity ratio, and
gross margin ratio.
• Example: HDFC Bank regularly analyzes various financial ratios such as net interest margin and cost-to-
income ratio to assess its financial health and operational efficiency.

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5. Customer Satisfaction Surveys:

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• Definition: Tools that measure how products and/or services supplied by a company meet, exceed, or fall
short of customer expectation.
• Use: These surveys provide direct feedback from customers and can be used to assess service quality,

it
customer loyalty, and the effectiveness of improvements.
oh
• Example: Flipkart, an Indian e-commerce giant, frequently utilizes customer satisfaction surveys to
determine customer happiness with their delivery and after-sales service.
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6. Employee Performance Evaluations:

• Definition: A systematic process to evaluate an individual employee’s job performance and productivity in
relation to certain pre-established criteria and organizational objectives.
• Use: Useful for assessing individual contributions to company goals, identifying areas for improvement,
and planning future development.
• Example: Wipro conducts regular performance evaluations using 360-degree feedback mechanisms to
ensure comprehensive assessment and encourage development.
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7. Net Promoter Score (NPS):

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• Definition: An index ranging from -100 to 100 that measures the willingness of customers to recommend a
company’s products or services to others.
• Use: Used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the

it
customer's loyalty to the brand.
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• Example: Zomato, an Indian food delivery service, uses NPS to gauge customer satisfaction and understand the
likelihood of customers promoting their service.
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Conclusion

In India, where diverse industries and competitive markets thrive, these tools provide organizations like Bharti Airtel,
Infosys, Tata Motors, HDFC Bank, Flipkart, Wipro, and Zomato with critical insights into their operations. By effectively
measuring organizational performance, these businesses can make data-driven decisions, optimize operations,
enhance customer and employee satisfaction, and ultimately achieve sustainable growth. Each tool, tailored to specific
aspects of performance, helps paint a comprehensive picture of organizational health and guide strategic adjustments.

MOHIT TIWARI
BVCOE, New Delhi
 Contemporary Issues in Control

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In the dynamic world of business management, control processes face various contemporary
challenges that can impact their effectiveness and efficiency. These issues often arise from rapid

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technological changes, evolving regulatory environments, globalization, and shifting market
dynamics. Understanding and addressing these contemporary issues is crucial for maintaining

it
robust control mechanisms that safeguard organizational interests and ensure sustainable
growth. oh
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Key Contemporary Issues in Control

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1. Cybersecurity Threats:
• Challenge: As businesses increasingly rely on digital technologies, the risk of cyber attacks grows, posing
significant threats to information integrity and security.

it
• Control Response: Organizations implement advanced cybersecurity measures, including firewalls, encryption,

•
oh
and continuous monitoring systems to protect sensitive data.
Example: Infosys, a leader in IT services in India, invests heavily in cybersecurity controls to protect client data
and proprietary information, employing state-of-the-art security protocols and continuous threat monitoring systems.
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2. Data Privacy and Compliance:
• Challenge: With stringent data protection regulations like the GDPR (EU General Data Protection Regulation)
and India's own proposed data protection laws, organizations must navigate complex compliance landscapes.
• Control Response: Developing comprehensive data governance frameworks that ensure data is handled
securely and in compliance with all applicable laws.
• Example: Companies like Reliance Jio, which handle vast amounts of consumer data, have implemented robust
privacy controls and compliance mechanisms to protect user data and adhere to regulatory requirements.

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3. Integration of New Technologies:

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•Challenge: Incorporating emerging technologies such as artificial intelligence (AI), blockchain, and the

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Internet of Things (IoT) into existing control systems can be complex and resource-intensive.
•Control Response: Organizations are progressively updating their IT infrastructure and control systems to
integrate these technologies, enhancing their capability to monitor, analyze, and control operations more

it
effectively.
oh
•Example: Tata Motors is integrating IoT into its manufacturing processes to enable real-time monitoring and
control, improving production efficiency and product quality.
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4. Globalization and Supply Chain Complexity:
•Challenge: Global operations introduce complexities in supply chain management, necessitating controls
across diverse geographical, cultural, and regulatory landscapes.
•Control Response: Implementing sophisticated supply chain management software that provides visibility
and control over global supply chains.
•Example: Mahindra & Mahindra manage a complex, global supply chain by using advanced ERP systems
that provide real-time data and control mechanisms to manage suppliers, logistics, and production schedules
effectively across continents.
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5. Sustainability and Environmental Compliance:

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• Challenge: Increasing focus on sustainability requires organizations to control their environmental impact and

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adhere to sustainability standards and regulations.
• Control Response: Developing environmental management systems (EMS) that monitor and control energy use,

it
waste production, and resource consumption.
• Example: ITC Limited employs rigorous environmental controls in its operations, actively monitoring and managing
oh
its carbon footprint, water use, and waste management to comply with international environmental standards and
corporate sustainability goals.
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6. Changing Workforce Dynamics:

• Challenge: The rise of remote work, gig workers, and changing workforce expectations pose new challenges for
human resource management and internal controls.
• Control Response: Organizations are adapting their HR control systems to manage a dispersed workforce
effectively, incorporating digital tools for remote monitoring, communication, and performance management.
• Example: During the COVID-19 pandemic, companies like Wipro adapted by implementing digital monitoring and
productivity tools to manage and control the performance of remote employees effectively.
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Conclusion

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Contemporary issues in control require organizations to be agile, forward-thinking, and
innovative in their approach to control mechanisms. Indian companies, with their burgeoning

it
roles in global markets and rapid adoption of technology, exemplify how adapting control
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systems to address these contemporary challenges is crucial for safeguarding assets, ensuring
compliance, and driving business success in today's complex business environment.
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MOHIT TIWARI
BVCOE, New Delhi
 Workplace Concerns

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Workplace concerns encompass a broad range of issues that can affect the environment,

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culture, safety, and efficiency of an organization. These concerns often relate to employee well-

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being, legal compliance, ethical conduct, and operational efficiency. Addressing these concerns
is crucial for maintaining a productive, safe, and positive workplace.

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Key Types of Workplace Concerns

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1. Health and Safety:
•Definition: Ensuring the physical safety and health of employees in the workplace.

it
•Challenges: This includes preventing accidents, injuries, and exposure to harmful conditions.
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•Control Measures: Implementing safety protocols, conducting regular safety drills, and
providing health and safety training to employees.
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2. Harassment and Discrimination:
•Definition: Protecting employees from harassment and discrimination based on gender, race,
religion, age, disability, sexual orientation, or any other status.
•Challenges: Creating a workplace where all employees feel respected and valued.
•Control Measures: Developing strict anti-harassment policies, providing training on diversity
and inclusion, and establishing clear procedures for reporting and addressing complaints.
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BVCOE, New Delhi
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3. Work-Life Balance:

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•Definition: Helping employees balance their work responsibilities with personal life, including

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family, hobbies, and health.
•Challenges: Managing overwork and stress that can lead to burnout.

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•Control Measures: Offering flexible working hours, remote work options, and support for
personal development. oh
4. Employee Engagement and Satisfaction:
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•Definition: Ensuring that employees are motivated, engaged, and satisfied with their jobs.
•Challenges: Preventing job dissatisfaction, which can lead to high turnover rates.
•Control Measures: Regular employee surveys, performance recognition programs, and career
development opportunities.

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BVCOE, New Delhi
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Examples from India

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1. Tata Steel: Health and Safety

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• Initiative: Tata Steel places a strong emphasis on health and safety, with comprehensive
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safety management systems in place. The company conducts regular safety training and audits
to ensure compliance with safety standards.
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• Impact: These measures have significantly reduced workplace accidents and injuries,
making Tata Steel one of the leaders in safety within the global steel industry.

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2. Infosys: Harassment and Discrimination

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• Initiative: Infosys has established a zero-tolerance policy towards harassment and discrimination. It
conducts regular sensitivity training and has a robust grievance handling mechanism to address any issues.

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• Impact: This has helped in maintaining a respectful and inclusive workplace culture, contributing to high
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employee morale and low turnover rates.
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3. Wipro: Work-Life Balance

• Initiative: Wipro offers various programs that support work-life balance, including flexible work
arrangements, wellness programs, and family care benefits.

• Impact: These initiatives have helped improve employee satisfaction and retention, making Wipro an
attractive employer in the competitive IT industry.
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BVCOE, New Delhi
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4. HDFC Bank: Employee Engagement and Satisfaction

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Initiative: HDFC Bank runs several employee engagement programs, including leadership development, recognition
awards, and constructive feedback mechanisms.

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Impact: These efforts have led to high levels of employee engagement and loyalty, contributing to the bank’s
reputation as a desirable workplace.
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Conclusion

Addressing workplace concerns is vital for any organization aiming to maintain a healthy, safe, and productive
environment. In India, where the workforce is diverse and the corporate landscape is rapidly evolving, companies like
Tata Steel, Infosys, Wipro, and HDFC Bank demonstrate how effectively managing workplace concerns can lead to
enhanced organizational performance, employee satisfaction, and sustained growth. Effective management of these
concerns involves not only complying with legal requirements but also going beyond compliance to create a workplace
culture that fosters employee well-being and organizational excellence.
MOHIT TIWARI
BVCOE, New Delhi
 Employee Theft

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Employee theft is a significant workplace issue that involves the unauthorized taking of an

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organization’s money, property, or information by employees. This misconduct can manifest in

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various forms, including pilfering of office supplies, embezzlement of funds, stealing company
data, and time theft. Addressing employee theft is crucial for maintaining financial integrity,

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operational efficiency, and organizational trust.
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BVCOE, New Delhi
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Types of Employee Theft

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• Cash Theft:

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Directly stealing money from the company, whether by taking cash from the register, falsifying expense
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reports, or manipulating financial records.

• Property Theft:
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Involves the unauthorized removal of physical items from the workplace, ranging from office supplies and
equipment to products intended for sale.

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BVCOE, New Delhi
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•Data Theft:

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Stealing or copying sensitive company information or intellectual property. This could
include customer databases, proprietary software, or confidential business strategies.

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• Time Theft: oh
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Occurs when employees are paid for time they did not work. This includes falsifying
timesheets, extended breaks without approval, and excessive personal time during work hours.

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BVCOE, New Delhi
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Preventive Measures

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• Comprehensive Background Checks: Conducting thorough background checks during the hiring process to identify any
history of dishonest behavior.

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•Clear Policies and Employee Training: Developing and communicating clear policies regarding employee conduct and the
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consequences of theft. Regular training sessions can reinforce these policies and the ethical standards expected.

• Strong Internal Controls: Implementing robust internal controls such as segregation of duties, regular audits, and secure
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access systems to minimize opportunities for theft.

• Use of Technology: Employing surveillance technologies, advanced inventory management systems, and secure IT
frameworks to monitor activities and protect assets.

• Promoting a Positive Workplace Culture: Encouraging an ethical, transparent, and positive workplace culture can reduce
incidents of theft. This includes fair treatment, open communication, and adequate employee recognition.

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BVCOE, New Delhi
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Examples from India

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• Retail Sector Incident:

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A notable case involved a leading retail chain in India where an employee was caught
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stealing merchandise from the store. The theft was detected through CCTV surveillance, leading
to immediate action and recovery of the stolen goods.
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• IT Industry Data Theft:

In a high-profile incident, an IT employee from a major technology firm in Bangalore was

found guilty of stealing sensitive client data with the intent to sell it to a competitor. The breach
was discovered through routine IT security checks and audits.

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BVCOE, New Delhi
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•Financial Sector Embezzlement:

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A manager at a private bank in Mumbai manipulated customer transactions to redirect funds into a
personal account. The fraud was uncovered during an internal audit which revealed discrepancies in the

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account balances.

Impact and Importance

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Employee theft not only leads to direct financial losses but also affects morale, damages the company’s
reputation, and can have legal consequences. It is imperative for organizations to establish strong deterrents
and controls to prevent such unethical behavior. In India, where diverse economic environments and large
employee bases pose unique challenges, companies must remain vigilant and proactive in combating
employee theft.

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BVCOE, New Delhi
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Conclusion

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Employee theft is a pervasive issue that can significantly impact an organization's bottom line and its ethical
standing. Effective management of this problem involves a combination of preventative measures, stringent

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controls, and a strong emphasis on ethical culture. Indian companies, across various sectors, are increasingly
recognizing the importance of addressing this issue and are implementing comprehensive strategies to
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mitigate the risks associated with employee theft.
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MOHIT TIWARI
BVCOE, New Delhi
 Employee Violence

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Employee violence refers to acts of aggression that occur within the workplace or during work-

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related activities. This disturbing phenomenon can range from verbal abuse and threats to

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physical assaults and, in extreme cases, homicide. Addressing employee violence is critical for
maintaining a safe and secure working environment, protecting employees' well-being, and

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ensuring the smooth operation of organizational processes.
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BVCOE, New Delhi
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• Physical Violence:

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Direct physical harm inflicted by an employee onto another person in the workplace. This can include
hitting, shoving, or other forms of physical assault.

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Verbal or Psychological Violence:

Non-physical forms of violence such as threats, verbal abuse, bullying, or harassment. This can cause
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significant psychological trauma and affect an employee's mental health.

• Property Damage:

Intentional damage to property belonging to the employer or other employees as a form of aggression or
retaliation.

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BVCOE, New Delhi
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Contributing Factors

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• Workplace Stress: High-pressure work environments, unrealistic job demands, and poor
management can contribute to workplace violence.

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• Lack of Conflict Resolution Mechanisms: Inadequate systems for resolving workplace disputes
may escalate conflicts into violence.
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• Cultural and Societal Influences: Cultural norms and societal attitudes towards conflict and
violence can influence behavior in the workplace.

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BVCOE, New Delhi
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Preventive Measures

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• Pre-Employment Screening:

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Conduct thorough background checks to identify any history of violent behavior.

• Clear Policies and Training:

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Establish clear policies regarding workplace violence, communicated through regular training sessions.

• Employee Assistance Programs (EAPs):

Provide support services for employees dealing with stress, personal issues.

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BVCOE, New Delhi
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•Security Measures:

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Implement security measures such as surveillance cameras, controlled access, and emergency
response plans.

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• Conflict Resolution Programs: oh
Offer mediation and conflict resolution services to address disputes healthily and constructively.
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BVCOE, New Delhi
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Examples from India

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•Manufacturing Sector Incident:

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In a factory in Pune, a dispute between two workers over job responsibilities escalated into
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a physical altercation, resulting in injuries. The incident highlighted the need for better conflict
resolution mechanisms and supervisory training in handling workplace disagreements.
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•IT Industry Bullying Case:

An IT firm in Bengaluru faced a lawsuit when a software developer was subjected to

sustained verbal abuse and psychological harassment by his supervisor, leading to severe stress
and eventual resignation. The case brought attention to the importance of mental health support
and anti-bullying policies in the workplace.
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BVCOE, New Delhi
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•Retail Sector Property Damage:

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A disgruntled employee at a retail store in Mumbai vandalized the store's property after being fired,
causing significant financial damage. This incident prompted the store to review its termination

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procedures and security measures.

•Construction Industry Conflict:

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At a major construction site in Hyderabad, a violent conflict erupted between two groups of workers
over wage disputes. The situation escalated to physical violence, resulting in injuries and disruption of
the construction project. The company responded by temporarily halting the project to conduct a
thorough investigation. Following this incident, the company implemented mandatory conflict resolution
training for all employees and introduced a structured grievance handling mechanism to address such
disputes proactively.

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BVCOE, New Delhi
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•Corporate Office Sabotage:

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In a multinational corporation's office in Mumbai, an employee engaged in sabotage by tampering with the
company’s data servers after receiving a negative performance review. The sabotage was quickly detected by

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the company’s IT security systems, and the employee was apprehended. This incident prompted the company
to review its data security measures and implement stricter access controls. Additionally, the company
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introduced a program to provide managers with training on constructive feedback and handling performance-
related discussions sensitively.
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Impact and Importance

Workplace violence can have devastating effects on individuals and organizations, including physical harm,
psychological trauma, increased employee turnover, reduced employee morale, and tarnished organizational
reputations. Effective management of workplace violence involves not only preventive measures and policy
enforcement but also a culture of respect, support, and security that prioritizes the well-being of all employees.

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BVCOE, New Delhi
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Conclusion

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Employee violence is a grave concern that requires comprehensive strategies to prevent,
address, and manage incidents effectively. In India, where diverse work environments and

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cultural dynamics play a significant role, organizations must be particularly vigilant and proactive
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in creating safe workplaces. This involves a combination of policy, training, support systems, and
cultural change initiatives to foster a non-violent and respectful working environment.
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MOHIT TIWARI
BVCOE, New Delhi
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In wrapping up, the study of control in organizational management unveils how critical it is to not

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only plan but also continuously monitor and adjust the course as necessary. Through various

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types of controls, financial diligence, and addressing contemporary challenges, organizations
can achieve a symphony of efficiency and effectiveness. This study of controlling has not only

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reinforced theoretical concepts but also highlighted their practical applications, making it evident
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that effective control is essential for any organization aiming for longevity and success in today’s
dynamic business environment.
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MOHIT TIWARI
BVCOE, New Delhi
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Thank you

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