Program: B.B.A.
, Semester- I, 2025
BBA 101: Principles of Management
Module- 05
Management Control
School of Management
Meaning
Management control is the process of evaluating, monitoring and
controlling the various sub-units of the organization so that there is
effective and efficient allocation and utilization of resources in
achieving the predetermine goals.
The management control system also provides mechanisms for proper
coordination and integration of various organizational sub-units by
interrelating the tasks being performed and deciding on the resource
allocation.
AI Driven Decision Support System
AI is a powerful tool in the present era that has proven significant
results if used wisely in any field.
The decision support system, which was made using AI tools in
activities like operation, management and planning proved to be more
profitable and gave better results than without AIs support system.
AI driven decision support system working:
1. Data Analysis: The system sifts through massive datasets from
various sources, including business systems, sensors, and IoT
devices.
2. Predictive modeling: It uses AI models to identify trends, forecast
future outcomes, and predict potential issues like equipment failure
or market changes.
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3. Real-time insights: AI-driven systems can process data in real-time,
providing managers with up-to-the-minute information for dynamic
decision-making in fast-paced environments.
4. Automation: It can automate repetitive tasks like data entry and
customer inquiries, freeing up human resources for more complex
work.
5. Actionable recommendations: The system presents actionable
insights and recommendations, helping managers choose the best
course of action from various alternatives.
Automated Decision making
Automated decision-making (ADM) is the process of using algorithms
and data to make decisions without direct human intervention. These
systems, which can range from simple rule-based systems to complex
AI, are used in many fields like loan applications, fraud detection, and
hiring. While ADM can increase efficiency, it also carries risks of error,
bias, and negative consequences if not properly managed, leading to a
focus on transparency and human oversight.
Examples:
1. Finance: Deciding to approve or deny a loan, or automatically
flagging potentially fraudulent credit card transactions.
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2. Employment: Filtering job applications or using AI to analyze
resumes for a role.
3. E-commerce: Recommending products to a user or personalizing
pricing.
4. Public services: Determining eligibility for benefits or services.
5. Legal: Some systems are used to assist with legal decisions, though
they are often heavily regulated.
Managerial decision making with AI Tools
1. Natural language processing (NLP) understands human language,
allowing you to automate tasks like customer support, data
analysis, and sentiment analysis.
2. Predictive analytics identifies patterns and connections in data for
future forecasting, such as seasonality.
3. Prescriptive analytics provides actionable recommendations by
processing data, trends, and context.
4. Generative AI processes vast volumes of information, understands
concepts, identifies relationships, and generates insights on a much
larger scale — and faster than any human can.
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As these AI capabilities converge, businesses can better connect data,
metrics, strategy, and operational activities for greater efficiency. This
can:
1. Free up 60-70% of employees’ time
2. Lower costs by 10% or more
3. Grow and sustain a competitive edge
4. Boost productivity by 66%
5. Reduce errors by 20%
Designing Leadership Development Plan
1. Assess where you are professionally- Mapping your leadership
development starts with understanding yourself and where you
stand professionally. Taking stock of your strengths, weaknesses,
and workplace tendencies can help identify areas for improvement
and anticipate pitfalls that could arise on your journey to becoming
a more capable leader.
2. Set an attainable goal- PACE Model in leadership development
P- Pick a leadership goal
A- Apprise others in your inner circle of the goal
C- Collect specific ideas on how to improve
E- Elicit feedback on how you’re doing
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3. Engage in leadership training
4. Interact with your network
5. Hone your soft skills
Performance Management Strategies
1. Set SMART goals
2. Ensure continuous feedback and check-ins
3. Create personalized employee development plans
4. Implement 360 degree feedback
5. Conduct performance appraisals
6. Introduce recognition and reward programs
7. Use performance management software
8. Establish competency based management
9. Clearly define OKRs ( Objective and key results)
10. Balanced scorecard
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11. Employee engagement surveys
12. Mentorship and coaching programs
13. Talent reviews and succession planning