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CONTROLLING – refers to the process of ascertaining whether organizational
objectives have been achievement, if not, to determine why not; and determining what
activities should be taken to achieve objectives better in the future
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1
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For
example:
•
•
•
•
•

Sales targets
Production targets
Worker attendance
Safety records
Supplies used

2
...

3
...


4
...


TYPE OF CONTROLS
1
...
They are
designed to detect and anticipate deviations from standards at various
points
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CONCURRENT CONTROLS – sometimes known as “ in process” or
“steering” controls, these controls apply to processes as they happen
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FEEDBACK CONTROLS – it is a post-performance control type that
focuses on the end result
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The multiple
usage of the different types of control can result in a more efficient way of controlling the
business, the people involved in the business and its finances
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INTEGRATION – control must not be haphazardly placed and must function
harmoniously within the established processes if the work
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ACCEPTABILITY – as with integration, employees must accept these devices or
methods
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ECONOMIC FEASIBILITY – comparing the costs to the benefits
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COMPREHENSIBILITY – complexity can cause for confusion
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PROJECT MANAGEMENT TECHNIQUE
1
...
PERT
breaks down the project into events and activities, and lays down their proper
sequence and duration in the form of a network
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2
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ADVANTAGES OF PERT/CPM
•
•

Making awareness of responsibilities
Securing cooperation

•
•
•
•
•

Facilities decision-making
Improved communication
Simultaneous performance of work
Advance control and action
Timely completion of a project

LIMITATIONS OF PERT/CPM
•
•

Error is estimation of time and cost application
Time consuming and expensive

Three times
estimation done
It gives importance to
time
It is suitable where
activity timings are not
known
It is event oriented

Three times
estimation done
It gives importance to
cost
It is suitable where
activity timings are
well known
It is actively oriented

COMPONENTS OF ORGANIZATIONAL CONTROL SYSTEMS
1
...
LONG RANGE FINANCIAL PLAN – this plan differs from company to company
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Engineering firms however will
need longer-term financial plans
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3
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4
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As
such, it provides employees with a guide on how they could do their jobs better in
the future
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STATISTICAL REPORTS – these are those that contain data on various
developments within the firms
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Labor efficiency rates
B
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Accounts receivable
D
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Sales reports
F
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Power consumption reports
6
...
Procedures is a plan that
describes the exact series of actions or steps to be taken in a given situation
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FINANCILA ANALYSIS – the success of most organization depend heavily on
its financial performances
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2
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Under this method, one account appearing in the
financial statement is paired with another to constitute a ratio
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TYPES:
A
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• CURRENT RATIO – shows the extent at which current assets of
the company can over it current liabilities
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EFFICIENCY RATIOS – these ratios shows how certain assets or
liabilities are used efficiently in the production of goods and services
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Inventory Turnover Ratio = cost of goods sold/ inventory
• FIXED ASSETS TURNOVER – is used to measure utilization of the
company’s on its fixed assets such as plant and equipment
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C
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• DEBT TO TOTAL ASSETS RATIO – shows how much of the firm’s
assets are financed by debt
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D
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Among the profitability ratios are the ff
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Profit Margin Ratio = net profit/ net sales
• RETURN ON ASSETS RATIO – shows how much income the
company produces for every peso invested in assets
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When operations become complicated the manager must
consider useful steps in controlling
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Executive reality check
2
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System of inadequate control
Ex:
A
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Customers complaining about poor services they get from the company
C
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