introduction to controlling
TRANSCRIPT
GROUP MEMBERS
ALI AHMED(58894)System & compliance asst.Soorty Enterprises LTD
SUMEEL AHMED(59175)Sr. Production OfficerShabbir tiles LTD.
USMAN ADIL(58896)Production PlanningInternational Steels Ltd.
MUHAMMAD ARSLAN(58849)TeacherDiamond public School
LEARNING OUTCOMES Definition of Controlling Importance & Purpose Link of Planning and controlling The controlling Process Steps Organizational Performance Measurement & Tools of Organizational
Performance Informational Control & MIS Role of MIS in management
Last function of management Monitoring of current performance Comparison against standards Taking corrective actions To achieve organizational goal
Controlling
Management can indicate the future steps to be taken.
It helps employees and managers to achieve the goal
Efficiently achievement of organizational goal and tasks.
Enhance the physical security and safety at workplace.
Technical Errors can be traced during performance
Ensuring activities completed in a way that leads to accomplishment of goal.
Importance and Purpose
Link of Planning & Controlling
Goals, objectives,
Strategies and Plans
Monitoring, Measuring, Comparison
Planning
Controlling
Structure, Scheduling
Organizing
Motivation, Communication
, Leadership
Leading
The Control Process1.
Measurement of
Performance
2. Comparison of Actual and
Standard
3. Taking Managerial
Action
Standards are the plans or the targets which have to be achieved in the course of business function.
Standards generally are classified into two:
a.Measurable or tangible
b.Non-measurable or intangible
Establishment of Standards
• Criteria (What)• Employees
• Satisfaction
• Turnover
• Absenteeism
• Budgets
• Costs
• Output
• Sales
What we Measure:
Step 1Measuring Performance:
Sources of Information (How) Personal
observation Statistical
reports Oral reports Written
reports
How We Measure:
Measuring Performance:
Determining the degree of variation between actual performance and the standard. Significance of variation is determined by:
The acceptable range of variation from the standard (forecast or budget).
The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).
17–13
Step 2Comparing Performance:
Defining the Acceptable Range of Variation
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Courses of Action “Doing nothing”
Only if deviation is judged to be insignificant.
17–15
Step 3
Taking Managerial Action
Correcting actual (current) performance:
• Immediate corrective action to correct the problem at once.
Change
strategy Change
structure
Change compensation scheme
Redesign Training
programs
Redesign jobs
Fire employe
es
Revising the standardExamining the standard to ascertain whether or not the standard is realistic, fair, and achievable. Upholding the validity of the standard.
Resetting goals that were initially set too low or too high.
Performance The end result of an activity
Organizational Performance The end results of organization’s task and
activities Designing strategies, work processes, and
work activities. Coordinating the work of employees.
ORGANIZATIONAL PERFORMANCE CONTROLLING
Organizational Productivity
Productivity:
The overall output of goods divided by the inputs needed to generate that output. How employees efficiently do
their work.
Inputs: costs of resources (materials, labor expense, and facilities)
Output: sales revenues
MEASURES OF ORGANIZATIONAL
PERFORMANCE
MEASURES OF ORGANIZATIONAL PERFORMANCE
Organizational Effectiveness: Measuring how appropriate
organizational goals. How well the organization is achieving
its goals
Three types of tools for MOP: Feed forward Control Concurrent Control Feedback Control
Feed forward Control
A control that taking preventative action before occurrence of problem.
Concurrent Control
Taking action while the activity is in progress.
TOOLS FOR MEASURES OF ORGANIZATIONAL
PERFORMANCE
Feedback Control Taking corrective action after an activity is done.
An action is after-the-fact, when the problem has already occurred.
TOOLS FOR MEASURES OF ORGANIZATIONAL
PERFORMANCE
• Provide managers with information on the effectiveness of their planning efforts.
• Enhance employee motivation.
ADVANTAGES OF FEEDBACK CONTROLS
Information Controls
Purposes of Information Controls:
As a tool to help managers control other organizational activities.
How is information used in controlling
Managers need The right information at the right time and
in the right amount.
Information Controls
Management Information Systems (MIS)
MIS is defined as
A system which provides information support for decision making in the organization.
MIS is also known as
Information system /Information and decision system/ Computer based information system
Role of MIS
Operational management Day to day operation of the business. It needs information on day to day basis to perform
the operations
Middle management Problem solving Progress monitoring Short term target setting
Advantages of MIS
Companies are able to highlight their strength and weakness
Control revenue reports & employees performance record.
Company improve their business operations and process.
Giving an overall picture of the company.
Baggage Blunders
British Airways for $8.6 billion, is London Heathrow Airport.
Has more than 10 miles of belts for moving luggage.
100 million hours in manpower, opening day didn’t work out as planned
Planning:
30 million passengers expected to pass through it annually.
With 96 self-service check-in kiosks, more than 90 fast check-in bag drops, 54 standard check-in desks, and miles of suitcase-moving belts estimated to be able to process 12,000 bags per hour
Baggage Blunders (cont.)
Problems occurred:
Arriving passengers waited more than an hour for their bags.
Flights left with empty cargo holds.
Sometime on day one, the airline checked in only those passengers with no luggage.
And it didn’t help that the moving belt system jammed at one point.
Arriving passengers waited more than an hour for their bags.
Departing passengers tried in vain to check in for flights.
Flights left with empty cargo holds.
Sometime on day one, the airline checked in only those passengers with no luggage.
And it didn’t help that the moving belt system jammed at one point.
Baggage Blunders (cont.)
a few broken escalators, some hand dryers that didn’t work, a gate that wouldn’t function at the new Underground station, and inexperienced ticket sellers
Corrective Action:
Britain’s Department of Transportation released a statement calling for British Airways and the airport operator BAA to “work hard to resolve these issues and limit disruptions to passengers.”
Problems can be prevented if British Airways had only tested the system. But thorough runs of all systems “from toilets to check in and seating” took place six months before opening, including four full-scale test runs using 16,000 volunteers.
Customer satisfaction survey showed that 80 percent of passengers waited less than five minutes to check in.
passengers are extremely satisfied with the terminal’s facilities.
Baggage Blunders (cont.)