MANAGEMENT
TECHNIQUES
AND PROCESSES
(CONTROLLING)
ENGR. DIGNA LORIA NOCUM, CE, SE
CONTROLLING
CONTROLLING IMPORTANCE CONTROLLING TECHNIQUES
OF PROCESS OF
CONTROLLING CONTROLLING
CONTROLLING
One of the important functions of a manager. In order
to seek planned results from the subordinates, a
manager needs to exercise effective control over the
activities of the subordinates.
Controlling also ensures that an organization’s
resources are being used effectively and efficiently for
the achievement of predetermined goals.
A good control system helps an organization in the
following ways:
Accomplishing Organizational Goals
IMPORTANC Judging Accuracy of Standards
E OF Making Efficient Use of Resources
CONTROLLI
NG Improving Employee Motivation
Ensuring Order and Discipline
Facilitating Coordination in Action
CONTROLLING PROCESS
The “Controlling Process” is a method that can be used to
make sure standards are being met within an
organization. It involves the careful collection of
information about a system, process, person, or group of
people in order to make necessary decisions about each.
Three basic types of control systems are available to
executives:
(1)Output control
(2)Behavior control
(3)Clan Control
CONTROLLING PROCESS
Output Control
- Any measure of organization control that focuses on things that
can be directly measured like number of sales, number of
customers or clients, specializes in the results of an action.
Behavior Control
- Facts that show whether there is a right to direct or control how
the worker or an employee does the work, attitude towards goal
accomplishment
Clan Control
- Values and beliefs of an organization that operates more like a
family than a company, prioritizes loyalty, employee experience,
engagement and collaboration.
• Different organizations emphasize different types of control,
CONTROLLIN but most organizations use a mix of all three types
G PROCESS
TYPES OF CONTROL
TECHNIQUES OF MANAGERIAL CONTROL
There are various 1. Traditional Techniques 2. Modern Techniques –
techniques of managerial – are those which have are those which are of
control which can be been used by the recent origin and are
classified into two broad companies for a long comparatively new in
categories namely: time now management literature
• 1. Traditional Techniques – are
those which have been used by
TECHNIQUES the companies for a long time now
• Personal observation –
OF M manager provides the
information
ANAGERIAL • Statistical reports – present
useful information regarding
CONTROL the performance of the
organization
• Break-even analysis –
determines the overall picture
of probable profit and losses
• Budgetary control – executed
to perform and plan budgets
and compare actual results
with the budgetary standards
• 2. Modern Techniques – are those which
are of recent origin and are
comparatively new in management
literature
• Return on investment – provides
the basic and guides for
measuring whether or not
invested capital has been used
effectively for generating a
reasonable amount of return
• Ratio Analysis
• Responsibility Accounting
TECHNIQUES OF
MANAGERIAL CONTROL
[Link] Techniques – are those which are of
recent origin and are comparatively new in
management literature
• Ratio Analysis – a quantitative
procedure of obtaining a look into a
firm’s functional efficiency, liquidity,
revenues, and profitability by analyzing
its financial records and statements.
• Responsibility Accounting – company’s
management, budgeting and internal
accounting are held accountable, goal
of which is to assist all of a company’s
planning, costing and responsibility
centers.
TECHNIQUES OF
MANAGERIAL CONTROL
Modern Techniques
Management Audit – refers to a
systematic appraisal of the overall
performance of the management of
an organization
PERT & CPM – PERT (programmed
evaluation and review technique
and CPM (critical path method)