Business chapter 8 class 12 (controlling)

 

It refers to bringing the actual result closer to the desired result

Features

1. Controlling is a fundamental management
2. Pervasive function
3. Controlling is a continuous activity
4. Controlling is the both the beginning and the end of the process management
5. Controlling is related to result

Importance

1. Accomplish organisational goal
2. Judging accuracy of standard
3. Making efficient use of resources
4. Improving employee motivation
5. Ensuring order and discipline
6. Facilitating coordination in action

Relationship between planning and controlling

• Independence between planning and controlling

Planning is meaningless without controlling and controlling is blind without planning

->planning is meaningless without controlling

Planning can be successful only in the process of controlling

->controlling is a blind without planning

Controlling HUL work performance is compared with the standards

• Difference between planning and controlling

->planning is looking ahead where controlling is looking back
Planner always formulated for future and determine controlling is looking back because and the it a manage is to find out

-> planning is the first function and controlling is the last function of managerial process

Controlling process

1. Setting performance standards
2. Measurement of actual work performance
3. Comparison of actual performance with standards
4. Analysing deviation
5. Talking corrective action

1) setting performance standard

it refers to the setting the criteria against which actual performance will be measured

Type of standards

1. Quantitative standards:- show with the help of figures

2. Qualitative standard :- measuring the moral of employees is standard of qualitative nature

Basis of standards

There are chiefly four bases standard:- (1) quantity (2) quality (3) time and (4) cost

2. Measurement of actual performance

->Actual✓performance should be measured is an objective and reliable manner and in the same units in which standards are set.

-> measurement is normally done after the task is completed but wherever possible it should be done during the performance

3. Comparison of actual work performance with standards

Actual performance is compared with the standard deviation of found out division can be two types:- (1) negative deviation (2) positive deviation

4. Analysing deviation

(1) principle of criteria point control

it refers to that concept of management which holds that instead of all activities the management should focus attention on only important activities

(2) principle of management by exception

it refers to dad principle of organisation control which holds that only significant division should be brought to the top management attention

Advantages

1. By take care of important derivation board time and efforts are saved
2. The management remains focused on important areas.
3. delegation of authority to handle less important problem to the subordinate help in reasoning their moral .
4. My locating important problem quickly, possible loss can be avoided

Causes of deviation

1. Human causes
2. Uncertain event
3. Various hurdles
4. Wrong standards

5.  Taking corrective action

(1) removing deviation in actual work performance

(2) stopping the reputation of any such problem in future

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