presented by mala gupta neha verma pankaj singh neeraj sharma ajay kumar
TRANSCRIPT
PRESENTATION ON MANAGEMENT CONTROLLING
PRESENTED BY MALA GUPTA NEHA VERMA PANKAJ SINGHNEERAJ SHARMAAJAY KUMAR
Max Weber a German sociologist is known as The Father of Bureaucracy.
About 1910 he made a study of different types of business and government organisations and distinguished 3 basic types of administration in them
Leader – orientedTradition – orientedBureaucratic.
Contributions of Max Weber
MANAGEMENT
“Management is a process involving planning, organising, staffing, directing, and controlling human efforts to achieve stated objectives in an organisation.”
“Controlling is checking current performance against predetermined standards contained in plans, with a view to ensuring adequate progress and satisfactory performance.”
E.F.L. Brech
CONTROLLING
Control is a basic function of management Control relates to people , things and actions Control is a continuous process The controlling process aim at taking corrective
measures Controlling on future events Attainment of goal
NATURE OF CONTROLLING
To find out the time consumed in a certain amount of work
To find the available resources and facilities for the performance of different works
To find out weather the desired result have been achieved of the desire quality in the standard time or not
The main object of controlling to get the work done by a manager from his subordinate according to pre- determine standards
OBJECTIVES OF CONTROLLING
Adjustment in operation Verification policy Managerial responsibility Psychological pressure Coordination in action Organisational efficiency and effectiveness Protection against risks Helpful in coordination and motivation
IMPORTANCE OF CONTROLLING
There are three basic steps in a control process. Establishing standards Measuring and comparing actual results against
standards Taking corrective action
CONTROL PROCESS
Desired performance
Implementation of correction
Corrective action plain
Analysis of causes of deviation
Actual performance
Measurement of
performance
Comparison of actual and standard
Identification of deviation
CONTROLLING PROCESS
The control process begins with planning and the establishment of performance objectives.
Performance objectives are defined and the standards for measuring them are set.
ESTABLISHING STANDARDS
There are some standards tend to be following Physical standards Cost standards Revenue standards Capital standards Intangible standards Working practice standards
ESTABLISH OBJECTIVES AND STANDARDS
Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.
Without measurement, effective control is not possible.
The comparison of actual performance with desired performance establishes the need for action
MEASURING AND COMPARING ACTUAL RESULTS AGAINST STANDARDS
To determine the correct causes for deviation. ( poor machinery, inadequate communication system , lack of motivation of subordinates etc.) The remedial action that should be taken depends
on the nature of causes for variation.
TAKING CORRECTIVE ACTION
Past oriented controls – these are known as past – action controls and measure results after the process.
Examples of such controls are most according records inspection of goods and services and area reports etc. Future oriented controls – these are also known as
steering controls or feed – forward controls and are designed to measure results during the process so that can be taken before the job is done on the period is over.
Examples of such controls are cash flow and funds flow analysis , networks planning etc.
TYPES OF CONTROL METHODS
INFORMATION
COMPARISON OF PAST AND FUTURE ORIENTED CONTROLS
INPUTPROCESS
OUTPUTS
PAST – ORIENTE
D CONTROL
FUTURE – ORIENTE
D CONTROL
FEEDBACK
FEEDFORWAR
A control system is need for there purposesTo measure progressTo uncover deviationsTo indicate corrective action
Need for control
Suitable Timely and forward looking Objective and comprehensible Flexible Economical Prescriptive and operational Acceptable to organisation members Reveal exceptions at strategic points Motivate people to high performance
ESSENTIALS OF EFFECTIVE CONTROL SYSTEM
Control over policies Control over organisation structure Control over personnel Control over wages and salaries Control over costs Control over methods and manpower Control over capital expenditure Control over service departments Control over line of products Control over R & D Control over foreign operations Control over external relations Over all control
CONTROL AREAS
These are divided in two types of control techniques1. Old control techniques2. New control techniques
CONTROLLING TECHNIQUES
TRADITIONALCONTROL TECHNIQUES
BUDGETARY CONTROL
RESPONSIBILITY ACCOUNTING
BREAK EVEN ANALYSIS
FINANCIAL STATEMENTS AND RATIO ANALSIS
RETURN ON INVESTMENT
REPORTS
MANAGEMENT AUDITING
PERSONAL OBSERVATION
OLD OR TRADITIONAL CONTROL TECHNIQUES
A budget is a statement of anticipated results during a designated time period expressed in financial and non- financial terms.
BUDGETARY CONTROL
Responsibility accounting can be defined as a system of accounting under which each department head is made responsible for the performance of his department.
RESPONSIBILITY ACCOUNTING
Break even analysis is another control device used in business firms.
it involves the use of chart to depict the overall volume of sales necessary to cover costs.
it is that point at which the cost and revenue of the enterprise are exactly equal.
BREAK EVEN ANALYSIS
Financial statements indicate what financial events occurred since the last statement. Depending on the company period covered by a financial statement could be the previous year, previous quarter , or the previous month.
FINANCIAL STATMENTS AND RATIO ANALYSIS
Ratio analysis seeks to extract information from a financial statement in a way that will allow an organisations financial performance or condition to be evaluated.The ratios must commonly used by organisations are the following –
Liquidity ratios Debt ratios Profitability ratios Operating ratios
RATIO ANALYSIS
ROI also known as the Du Pont system of financial analysis.
this ratio computed on the basis of capital turnover (sales divided by investment) multiplied by earnings as proportion of sales (profit divided by sales).
RETURN ON INVESTMENT
The following are certain types of reports which are prepared and submitted to the management regularlyTop management reportSales management reportProduction reportSpecial reports
REPORTS
1. INTERNAL AUDITING - internal auditing also called operational control is an effective tool of managerial control.
2. EXTERNAL AUDITING – external auditing is an independent appraisal of the organisation financial accounts and statements.
The purpose of it is to ensure that the interests of shareholders and other outside parties connected with the company are safeguard against the malpractices of the management.
MANAGEMENT AUDITING
Quality control can be applied at two distinct phases of operations statistical quality control of an operation in
processInspection control of raw material semi
finished product & finished products
QUALITY CONTROL
A manager can also exercise fruitful control over his subordinates by observing them while they are engaged in work.
Personal observation helps the manager not only in knowing the workers attitude towards work but also in correcting their work and methods.
PERSONAL OBSERVATION
MODERN CONTROL
TECHNIQUES
PERT & CPMHUMAN
RESOURCE ACCOUNTING
MANAGEMENT INFORMATION
SYSTEM
MODERN CONTROL TECHNIQUES
PERT/CPM is used either to minimise total time , minimise total cost for a given total time , minimise time for given cost or minimise idle resources.
PERT AND CPM
Identification of activitiesSequential arrangement of activities Time estimates of activitiesNetwork constructionCritical path
PROCESS OF PERT/CPM
Human resource accounting is accounting for people as an organisational resource.
It involves measuring the costs incurred by business firms and other organisations to recruit, select, hire, train, and develop human assets.
It also involves measuring the economic valve of people to the organisation.
HUMAN RESOUCE ACCOUNTING
An information system can be any organised combination of people, hardware, software, communication networks, and data resources that collects, transforms, and disestimates information in an organisation.
MANAGEMENT INFORMATION SYSTEM
The management functions of planning, and controlling are widely considered to be the best means of describing the manager’s job, as well as the best way to classify accumulated knowledge about the study of management. Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions.
CONCLUSION