controlling and coordination

Chapter 9
 Determining what is being accomplished, i.e.
evaluating the performance and if necessary, applying
corrective measures so that the performance takes
place according to plans
 Ensuring that actions in an organization are
performed as per the policy
 Process of taking steps to bring actual results and
desired results closed together
 Process of bringing about conformity of performance
with planned action
 Achieving organizational objectives
 Judging precision of standards
 Making optimum use of resources
 Increases employee motivation and morale
 Ensuring order and discipline
 Facilitate harmony in action
Control Process
Measurement of
real performance
performance with
Selecting and
Listing out
Finding the causes
for variations
Control Techniques
Traditional Techniques
 Personal Observation
 Statistical Data
 Special Reports and
 Breakeven Analysis
 Budgetary Control
Modern Techniques
 Return on Investment
 Ratio analysis
 Responsibility
 Managerial Audit
Traditional Techniques
 Personal Observation
 Statistical Data
 Special Reports and Analysis
Traditional Techniques
 Break Even Analysis
 Involves calculating the Break Even Point
 Point at which there is no profit, no loss
 Beyond the point profit, below the point loss
 Budgetary control
 Budgets: statements of anticipated results
 Actual performance can be compared against the
budgeted performance
Modern Techniques
 Management Audit:
 Systematic evaluation of functioning, performance and
effectiveness of management of an organization
 Conducted by a team of experts
 Team collects data from management, employees,
customers, suppliers etc.
 Collected data analyzed to judge performance of the
 Helps to judge performance of management objectively
Modern Techniques
 PERT and CPM:
 PERT( Programme Evaluation and Review Technique)
 CPM( Critical Path Method)
 Based on expected completion time computed from
three estimates of time: optimistic, pessimistic and most
likely time.
 Used for planning, scheduling and executing large
projects involving number of interrelated activities
Modern Techniques
 Return On Investment
 Provides a basic benchmark for measuring whether or
not invested capital has been used successfully to
generate realistic returns
 MIS:
 Data collected and stored for future reference
 Data bank is maintained
 When required managers may use the information
Modern Techniques
 Ratio Analysis
 For analyzing financial statements
 Liquidity ,Solvency, Profitability and Turnover ratios are
commonly used
 Responsibility Accounting
 Performance of employees judged by assessing how far
they have been able to meet the preset targets
Chapter 10
 Set of human and structural mechanisms designed to
link the parts of the enterprise together to help achieve
the specified objectives
 Orderly arrangement of group effort to provide unity
of action in the pursuit of common purpose
Need and Importance
 Group effort
 Mutual Confidence
 Helps to resolve conflicts
 Encourages team spirit
 Smooth working
 High employee morale
 Good relations
 Optimum utilization of resources
Coordination as an essence of
 Planning
 Organizing
 Staffing
 Directing
 Communicating
 Leading
 Motivating
 Controlling
Thank You

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