CONTROLLING

(Function of Management)
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 Henry Fayol:
Control consists in
verifying whether
everything occurs in
conformity with the plan
adopted, the instructions
issued and principles
established.
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 Koontz and O’Donnell:
Controlling implies
measurement of
accomplishment or performance
against the standard and the
correction of deviations to
assure attainment of objectives
according to plans.
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 CONTROLLING – CONCEPT:
 Controlling is an important function of
management.
 It verifies that all the allotted task are
being performed on time.
 Controlling ensures that activities in
an organization are performed as per
the plans.
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 CONTROLLING – CONCEPT:
 Controlling also ensures that an
organization’s resources are being used
effectively and efficiently for the
achievement of predetermined goals.
 Controlling should not be misunderstood as
the last function of management.
 It is a function that brings back the
management cycle back to the planning
function.
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 FEATURES OF CONTROLLING:

Controlling is an end function.

Controlling is a pervasive function.
Controlling is forward looking.
Controlling is a dynamic process.
Controlling is related with planning.
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 CONTROLLING PROCESS:

Set Standards

Take
Measure
Corrective
Performance
Action

Compare
Performance
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 CONTROLLING
TECHNIQUES:
Traditional Techniques:

1. Personal Observation
2. Statistical Reports
3. Break even Analysis
4. Budgetary Control
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 CONTROLLING
TECHNIQUES:
 Modern Techniques:
1. Return of Investment (ROI)
2. Ratio Analysis
3. Responsibility Accounting
4. Management Audit
5. PERT AND CPM
6. Management Information System
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 IMPORTANCE OF
CONTROLLING:
a) Decentralization of authority
b) Increasing managerial abilities
c) Using resources effectively
d) Facilitating coordination
e) Structuring human behavior
f) Achieving efficiency and effectiveness
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 Your best quote that reflects your
approach… “It’s one small step for
man, one giant leap for mankind.”
- Neil Armstrong
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― Irene M. Pepperberg