BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT CHAPTER- 13. CONTROL

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BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT CHAPTER- 13. CONTROL

DEFINITION OF CONTROL:-
Control is the process of analyzing and correcting actions to ensure they align with plans, emphasizing its role in achieving organizational objectives

CHARACTERISTICS OF CONTROL:-

  • Control is pervasive, occurring at all organizational levels

  • It’s a continues and dynamic process , adapting to changes

  • It relies on clear planning and is action-oriented , focusing on future outcomes

  • Effective control requires delegation of authority and helps organizations cope

    with uncertainty

    IMPORTANCE OF CONTROL:

  • Control is crucial for organizational smoothness and efficiency

  • It adjusts operations , ensures managerial responsibility , motivates performance ,

    promotes coordination , and contribute to overall efficiency and effectiveness

    STAGES IN THE CONTROL PROCESS:
    • Setting standards:- define objectives and goal
    • Measuring performance:- evaluate actual performance against standards • Comparing with standards:- identify and analyse deviation
    • Adopting corrective measures:- take actions to prevent future deviation

    REQUISITES OF EFFECTIVE CONTROL

  • Clear definition of objectives:- objectives must be defined before implementing a control system

  • Efficient control techniques:- techniques should detect deviations early with minimal consequences

  • Responsibility of control:- managers implementing plans should bear primary responsibility

  • Direct control:- maintain direct control between controllers and the controlled

  • Organizational suitability:- tailor controls to the fit the organizational structure

  • Flexibility:- adapt to changing conditions and developments

  • Self control:- departments can control themselves, enhancing detailed control

    within each department

  • Strategic point control:- focus on critical key points for effective management

    attention

  • Corrective action:- deviation should lead to timely corrective action

  • Forward looking control:- reports should relate to the future , suggesting

    measures to rectify past deviations

  • Human factor:- consider the human aspects, as well designed system may fail

    due to human reaction

  • Economical :- the control system should justify its cost

  • Objective standard:- standard should be based on factual information

LIMITATIONS OF CONTROL
• Lack of control over external factors • Want of satisfactory standards
• Measurement of imperfections
• Limitations of corrective actions
• Adverse reactions against control
• Practical impediments to application

AREAS OF CONTROL

• Market standing
• Innovation
• Productivity
• Physical resources • Financial resources • Profitability

• Manager’s performance and attitude

• Public responsibility
The areas of control are crucial for maintaining organizational health, sustainability and growth. Effective control in these dimensions ensures that the organization operates effectively, adapts to changes, and fulfills its responsibility to various stake holders

TRADITIONAL CONTROL TECHNIQUES:
Traditional control technique in management refers to established method that have been used over an extended period to mange and regulate organizational activities. Two notable traditional control techniques are:

1. Budgetary control:-

  • Definition:-involves setting performance targets through financial plans(budget) and continuously comparing actual performance against the budget

  • Objective :- aims to achieve organizational goals by ensuring actual results align with the planed financial estimates

    2. Standard costing:-

    • Definition:- utilizes predetermined stands costs for each cost item, providing benchmark against which actual costs are compared

    • Objective:- enables the identification and analysis of variations between actual costs and standard costs , facilitating corrective action

    MODERN TECHNIQUE:
    Modern techniques in management represents contemporary methods that have evolved in response to changing business environments. Some key modern techniques include:

    1. Break-Even Analysis :-
    • Definition:- analysis the relationship between costs, volume of sales , and

    pro>it to determine the point at which costs are covered and pro>it begin • Objective:- helps management understand the impact of sales volume

changes on profitability and identifies the break-even point

2. PERT( Program Evaluation and Review Technique )

• Definition:- project management technique that analyses and represent the task required to complete project , emphasizing the interdependence of activities

• Objective:- aids in planning , scheduling and controlling projects, particularly those non-routine or complex activities

3. CPM(Critical Path Method)
• Definition:- project management technique that identifies the critical

path, a sequence of tasks determining the minimum time needed for

project completion
• Objective:- facilitate better planning, coordination, and control of

projects, focusing on key elements crucial for project success

4. Statistical Quality Control:

• Definition:- uses statistical methods to assess weather variation in product quality and due to chance or assignable causes

• Objectives:- helps maintain and improve product quality by distinguishing between inherent process variation and deviation


5. Management Audit:

• Definition:- systematic and impartial examination of management’s overall performance , assessing organizational structure , objectives , plans , policies and resource utilization

• Objectives:- provides a comprehensive evaluation pf management’s effectiveness, aiding in strategic decision-making and continues improvement

These modern techniques reflect advancements in management practices, emphasizing data- driven decision – making , project management efficiency, and quality control in dynamic business environment

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