1.3.5-Types of Controlling.

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INSTITUTE – University School of Business

DEPARTMENT – Management (M.B.A.)


Subject : Management Practices and Organizational Behavior
Subject Code : 22 BAT 603
Unit :1
Topic Name : Introduction to Management
Faculty Name : Dr . Bhaskara Srinivas

DISCOVER . LEARN . EMPOWER

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Course Objective

COB No. Title

CO1 To give an exposure to students of the individual behavior in organizations.

To enable students to combine relevant information and appraise options for the
CO2 most optimal solution so that they will be able to envisage and control human
behaviour at work and improve organizational effectiveness.

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Practices and
Organizational
Behavior
Course Outcome
CO Title Level
Number
CO1 To understand the concepts of individual and group Remember
behavior in an organizational set up.
 

CO2 To be able to apply leadership styles to lead diverse Understand


teams in a volatile business environment settings.
 

CO3 To analyze different alternatives while taking strategic Understand


decisions for organizational growth Will be covered in
this lecture
CO4 To evaluate how organizational change and culture Understand
contribute in sustainability of an organization
CO5 To develop conflict resolution and motivational strategies Understand
to retain high performing people in the organization.
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Learning Objectives
• Understand the concept of controlling and its
importance in the management process.
• Explore the different types of control mechanisms
used in organizations and their respective features
and applications.
• Learn the process of controlling, including setting
performance standards, measuring performance,
comparing results, and taking corrective actions.
Understand the benefits of effective controlling and
how it contributes to organizational success

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Content

• Definition:
• Features of Controlling
• Types of control
• Process of Controlling
• Advantages of controlling

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Definition: Control is a primary goal-oriented function of management in an
organisation. It is a process of comparing the actual performance with the set
standards of the company to ensure that activities are performed according to the
plans and if not then taking corrective action.

Every manager needs to monitor and evaluate the activities of his subordinates. It
helps in taking corrective actions by the manager in the given timeline to avoid
contingency or company’s loss.

Controlling is performed at the lower, middle and upper levels of the


management.

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An effective control system has the following features:
•It helps in achieving organizational goals.
•Facilitates optimum utilization of resources.
•It evaluates the accuracy of the standard.
•It also sets discipline and order.
•Motivates the employees and boosts employee morale.
•Ensures future planning by revising standards.
•Improves overall performance of an organization.
•It also minimizes errors.

Controlling and planning are interrelated for controlling gives an important input
into the next planning cycle. Controlling is a backwards-looking function which
brings the management cycle back to the planning function. Planning is a forward-
looking process as it deals with the forecasts about the future conditions.
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There are three types of control viz.,

Feedback Control: This process involves collecting information about a


finished task, assessing that information and improvising the same type of
tasks in the future.

Concurrent control: It is also called real-time control. It checks any problem


and examines it to take action before any loss is incurred. Example: control
chart.

Predictive/ feedforward control: This type of control helps to foresee problem


ahead of occurrence. Therefore action can be taken before such a
circumstance arises.
In an ever-changing and complex environment, controlling forms an integral
part of the organization.

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Control process involves the following steps as shown in
the figure:

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•Establishing standards: This means setting up of the target which needs to
be achieved to meet organisational goals eventually. Standards indicate the
criteria of performance.Control standards are categorized as quantitative and
qualitative standards. Quantitative standards are expressed in terms of
money. Qualitative standards, on the other hand, includes intangible items.

•Measurement of actual performance: The actual performance of the


employee is measured against the target. With the increasing levels of
management, the measurement of performance becomes difficult.

•Comparison of actual performance with the standard: This compares the


degree of difference between the actual performance and the standard.
•Taking corrective actions: It is initiated by the manager who corrects any
defects in actual performance.

Controlling process thus regulates companies’ activities so that actual


performance conforms to the standard plan. An effective control system
enables managers to avoid circumstances which cause the company’s loss.
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• Saves time and energy
• Allows managers to concentrate on important tasks. This allows better
utilization of the managerial resource.
• Helps in timely corrective action to be taken by the manager.
• Managers can delegate tasks so routinely chores can be completed by
subordinates.

On the contrary, controlling suffers from the constraint that the organization has
no control over external factors. It can turn out to be a costly affair,
especially for small companies.

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Summary of the Topic

• Controlling is a vital managerial function that involves


monitoring, evaluating, and regulating organizational
activities to ensure they align with established goals
and standards. It encompasses various types of
control mechanisms, including financial, operational,
and strategic controls. Effective controlling provides
several advantages such as improved performance,
enhanced productivity, and timely corrective actions.

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References
Books • Durai, P. (2015). Principles of Management, Text and Cases. New
Delhi: Pearson Education.
• Koontz, H. (2010). Essentials of Management. New Delhi: Tata
McGraw-Hill Education.
• Stoner, Freeman & Gilbert Jr. (2009). Management. New Delhi:
Prentice Hall.
• Weihrich, H. & Koontz, H. (2010). Management- A Global
Perspective: New Delhi: Tata McGraw-Hill Education.
Websites • https://www.preservearticles.com/
• https://www.yourarticlelibrary.com/

Video https://www.youtube.com/watch?v=jzpF4cOYiiM
Link https://www.youtube.com/watch?v=-XZ1poxYt84&t=15s 13
Assessment Pattern
Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

For queries you can reach me on Email:


bhaskara.e11372cumail.in

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