MTP Ch 10
MTP Ch 10
MTP Ch 10
Fundamentals of Controlling
1. Definition
Controlling is the process through which
managers assure that actual activities
conform to planned activities
It sees that the right things happen, in the
right ways, and at the right time.
2. Purposes of Controlling
Controls make plans effective
Managers need to measure progress, offer
feedback, and direct their teams if they want to
succeed.
Controls make sure that organizational activities
are consistent
Policies and procedures help ensure that efforts
are integrated.
Controls make organizations effective
Controls make organizations efficient
Efficiency probably depends more on controls
than any other management function.
Purposes of controlling Cont’d
Controls provide feedback on project status.
Feedback influences behavior and is an essential
ingredient in the control process.
Controls aid in decision making.
Controls make managers aware of problems and
give them information that is necessary for decision
making.
Adapting to changing conditions
A properly designed control system allows
managers to effectively anticipate, monitor, and
respond to often constantly changing conditions.
3. Relationship with other management functions
Accurate
Since control systems provide the basis for
future actions, accuracy is vital.
Acceptable to Organization Members
Control systems operate best when they
are accepted by the organization members
who are affected by them
Characteristics Cont’d
Timely
Control systems must provide relevant
information soon enough to allow corrective
action before there are serious repercussions
or consequences
Reliability and Validity
Controls not only must be dependable
(reliable), but also must measure what they
intend to measure (must be valid).
Characteristics Cont’d
Flexible
Control systems need to be flexible
enough to meet new or revised
requirements.
Easy to Understand
The simpler the control, the easier it
will be to understand and apply.
5.Controlling Process
Establish objectives and standards.
Measure actual performance.
Compare results with objectives and
standards.
Take necessary action.
5.1 Establish Objectives and Standards