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Managerial Control: Key Concepts & Techniques

Managerial control is the process of ensuring actual performance aligns with planned performance through monitoring and corrective actions. It is characterized by being goal-oriented, continuous, and action-oriented, and is essential for efficient resource use and organizational discipline. The control process involves establishing standards, measuring performance, comparing results, and taking corrective actions, with various traditional and modern techniques available to implement effective control systems.

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14 views3 pages

Managerial Control: Key Concepts & Techniques

Managerial control is the process of ensuring actual performance aligns with planned performance through monitoring and corrective actions. It is characterized by being goal-oriented, continuous, and action-oriented, and is essential for efficient resource use and organizational discipline. The control process involves establishing standards, measuring performance, comparing results, and taking corrective actions, with various traditional and modern techniques available to implement effective control systems.

Uploaded by

kuntalmegh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Managerial Control - Comprehensive Notes

1. Meaning of Managerial Control

Managerial control is the process of ensuring that actual performance conforms to planned performance. It

involves monitoring, evaluating, and taking corrective actions to achieve organizational goals.

2. Nature and Characteristics of Control

- Goal-Oriented: Focuses on achieving predefined objectives.

- Pervasive: Present at all levels and in all types of organizations.

- Continuous Process: Not a one-time function; occurs regularly.

- Action-Oriented: Seeks corrective measures for deviations.

- Forward-Looking: Though based on past data, it aims at future improvements.

3. Importance of Control

- Ensures efficient use of resources.

- Facilitates coordination among departments.

- Helps in corrective actions.

- Improves employee performance.

- Promotes organizational discipline and order.

4. Types of Control

Feedforward Control: Prevents problems before they occur (e.g., setting quality standards).

Concurrent Control: Happens during the activity (e.g., real-time supervision).

Feedback Control: Based on results after the activity (e.g., profit and loss statements).

5. The Control Process

1. Establishing Standards - Criteria for performance (e.g., output targets, budgets).

2. Measuring Performance - Using reports, observation, audits.

3. Comparing with Standards - Identifying deviations.

4. Taking Corrective Actions - Adjusting processes or setting new goals.

6. Requirements for Effective Control System


Managerial Control - Comprehensive Notes

- Suitability

- Flexibility

- Objectivity

- Economical

- Promptness

- Acceptability

7. Control Techniques

A. Traditional Techniques

- Personal Observation

- Statistical Reports

- Budgetary Control

- Break-even Analysis

- Internal Audit

B. Modern Techniques

- Return on Investment (ROI)

- Responsibility Accounting

- Management by Objectives (MBO)

- PERT and CPM

- MIS (Management Information System)

8. Relationship Between Planning and Control

Planning sets the standards; control measures performance against these standards.

Control feeds back into planning by highlighting gaps and needed improvements.

9. Limitations of Control

- Costs

- Resistance

- Limited Scope
Managerial Control - Comprehensive Notes

- Time-consuming

10. Special Control Areas

- Production Control

- Quality Control

- Financial Control

- Human Resource Control

11. Managerial Control in Modern Organizations

Modern control must be real-time, data-driven, and integrated with decision-making.

Conclusion

Managerial control aligns actual performance with organizational goals through planning, monitoring, and

feedback. A well-designed control system improves efficiency, ensures accountability, and enables better

decision-making.

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