Presented By:

Group: Compromise Intake: 19th Section: 02

Group Name: Compromise

Group Leader: Rima Afrin

Group Member: 1. Khatune Jannat 2. Nasrin Akter 3. Mahmud Rayhan 4. Rima Afrin 5. Md. Tariqul Islam

ID 048 ID 050 ID 061 ID 064 ID 072

Rima Afrin
ID_064, Intake_19th

Controlling
Controlling is the measuring and collecting individual and organizational performance to ensure that event conform to plan. Controlling is the process in which management evaluates performance using pre determine standards and in light the results makes a decision regarding corrective action. Controlling is the process of establishing standard measuring the performance determining whether matches the standards and taking corrective action on the basis of plan.

CONTROLLING

According to Heinz Weihrich and Harold Koontz

The managerial function of Controlling is the measurement and corrective of performance in order to make sure that enterprise objectives and the plans devised to attain them being accomplished

Md. Tariqul Islam

ID_072, Intake_19th

Controlling Process
Having an effective control system can help ensure that an organization achieves its goals. Implementing a control system, however is a systematic process that generally processed through four interrelated steps. The four steps of controlling process are given below: 1. 2. 3. 4. Establish Standard Measurement of Performance Compare Performance against standards Determine need for corrective action
Compare Performance against standards

Establish
Standard

Measurement of Performance

Determine need for corrective action

Figure : Controlling Process

ESTABLISHMENT OF STANDARDS

The first step in the control process would be to establish plans. Standard established for control purposes should be expressed measurable terms. Plans are very in detail and complexity and managers cant usually watch everything special standards are established. Standards are simply criteria of performance.

MEASUREMENT OF PERFORMANCE
The second step in the control process is measuring performance. Performance measurement is a constant, ongoing activity for most organizations. For control to be effective, performance measures must be valid. The measurement of performance against standards should ideally be done one a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

Compare Performance against standards

The third steps in the control process is comparing measured performance against established standards . Performance may be higher than lower than or identical to the standard.

Determine need for corrective action

The final step in the control process is determining the need for

corrective action. Decisions regarding corrective action draw heavily on

a managers analytic an diagnostic skills. Standards should reflect the various positions in an organization structure. A performance is measured accordingly it is easier to correct deviations. Managers know exactly where in the assignment of individual or group duties, the corrective measures must be applied.

Mahmud Rayhan
ID_061, Intake_19th

Types of Control
There are three types of control. These types are given below:

Types of Control
1. On the basis of areas:

a. b. c. d.

Physical Resources Human Resources Information Resources Financial Resources

2. On the basis of Level: a. Strategic Control b. Structural Control c. Operation Control

d. Financial Control

3. On the basis of Responsibility

1. On the basis of areas:

Control can focus on any area of an organization. Most organization define areas of control in terms of the four basis. Types of resources they use:

a. b. c. d.

Physical Resources Human Resources Information Resources Financial Resources

a. Physical Resources: Physical Resources includes inventory management , quality Control. b. Human Resources: It includes selection and placement, training, and development, performance appraisal, compensation.

c. Information Resources:
It includes sales and working , forecasting, environmental analysis, public relation.

d. Financial Resources:
It involves managing the organizations debt, so that the firm always has enough cash on hand to meet its obligation.

2. On the basis of Level:

Control can be broken down by level within the organizational system. There are four basis of levels of control:

1. 2. 3. 4.

Strategic Control Structural Control Operation Control Financial Control

1. Strategic Control:
It focus on how effective the organization corporate. Functional strategic Are succeeding in helping the organization meet it goals.

2. Structural Control:
It concern with how the element of the organization structure are serving their intended purpose.

3. Operation Control:
It focus on the purpose of the organization uses to transform resources into product and services. Mainly preliminary, screening, and pos transformation these three forms of the operations are controlled by operation control

4. Financial Control
Financial control is the control of financial resources as they flow into the organization . Such as - Revenue , shareholder investment. - Working capital, Retail earnings. Financial control is two types: 1. Budgetary control 2. Other tools of financial control

3. On the basis of Responsibility:

Traditionally managers have been responsible for overseeing the wide array of control system and concerns in organization.

Thus ultimate responsibility for control rests with all managers. A controller is responsible for helping line managers with their control activities for coordinating the organizations overall control system. Many organization are also beginning to use operating employees to help maintain effective control.

Khatune Jannat
ID_048, Intake_19th

IMPORTANCE OF CONTROLLING

There are some importance of controlling. These are given bellow:

1. 2. 3. 4. 5. 6. Basis for future action Facilitates decision making Facilitates decentralization Facilitates supervision Improves efficiency Facilitates Coordination

1. Basis on future action:

Control helps the management to avoid repetition of past mistakes and provides the basis for future action.

2. Facilitates decision making:

Controlling is fundamental to decision making. It helps in determining the course of action whenever there is a deviation between the standard and the actual performance.

3. Facilitates decentralization:
The modern trend of business organizations toward decentralization calls for a systematic attempt towards controlling. Without proper control, decentralization cannot succeed.

4.

Facilitates supervision:
The existence of a proper control system should have a positive impact on the behaviors of the employee. It facilitates supervision.
5.

Improves efficiency:
Since a good control system smooth away wrinkles in the working of an organization the morale of the employees remains high.
6.

Facilitates Coordination:
Control helps in integration of activities through unity of action. It provides unity of direction.

Nasrin Akter
ID_050, Intake_19th

Requirements for effective controls

All alert managers want to have an adequate and effective system of controls to assist them in making sure that events conform to plans. Indeed, if controls are to work, they must be tailored to plans and positions, to the individual managers and their personalities, and to the needs for efficiency and effectiveness. Discussed below.

Tailoring controls to plans and position:

All control techniques and systems should reflect the plans they are designed to follow. They should also be tailored to position.

Tailoring controls to individual managers:

Controls must be tailored to individual managers. Control systems and information are of course intended to help individual managers carry out their function of control.

 Designing controls to point up exceptions at critical points: One of the most important ways of tailoring controls to the needs for efficiency and effectiveness is to design them to point up exceptions. Efficient control requires that managers look for exceptions, while effective control requires that managers pay primary attention to things that are most important.

Seeking objectivity of controls:

Management necessarily has many subjective elements, but whether a subordinate is doing a good job should ideally not be a matter for subjective determination. Effective control requires objective, accurate, and suitable standards.

 Ensuring flexibility of controls:

Controls should remain workable in the face of changed plans, unforeseen circumstances, or outright failures. If controls are to remain effective deposit failure or unexpected changes of plans, they must be flexible.

Fitting the control system to the organization culture:

To be most effective, any control system or technique must fit the organization culture. If an organization has given its employees considerable freedom and participation, a tight control system any go so strongly against the grain that it will be doomed to failure.

 Achieving economy of controls:

Controls must be worth their costs. Although this requirement is simple, it is often difficult to accomplish in practice. Economy is relative, since the benefits of controls vary with the importance of the activity.

Establishing controls that lead to corrective action:

An adequate system will disclose where failures are occurring and who is responsible for them, and it will ensure that corrective action is taken. Control is justified only if deviations from plans are corrected through appropriate planning, organizing, staffing and leading.

So controlling is important part of management.

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