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Controlling

BUSINESS ORGANIZATION AND MANAGEMENT - 4 FUNCTIONS OF MANAGEMENT - CONTROLLING

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Voltaire Noya
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11 views

Controlling

BUSINESS ORGANIZATION AND MANAGEMENT - 4 FUNCTIONS OF MANAGEMENT - CONTROLLING

Uploaded by

Voltaire Noya
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CONTROLLING

contributes to the
achievement of
organizational goals
by checking errors
and addressing
deviations from
established
an ongoing
process that
involves
members at all
levels of the
it can be
anticipatory
and
retrospective
Anticipatory, for it
anticipates
problems so that
immediate
corrective actions
Retrospective, for it
looks back and reviews
actions and operations
to determine which
aspects conform to
standards and which
Four main
steps in
control
process
1. Establishment of
standards

 Time Standards – set


goals based on the length
of time devoted to the
 Cost Standards – are
expected financial expenses
in the project or activity
 Income Standards –the gain
or financial rewards received
after a particular activity or
project
2. Measure of
performance
 is measured by identifying
strategic control points
(income, expenses,
inventory, product quality,
3. Comparison of the
actual performance
with the standards
4. Taking corrective
actions and
realigning processes
The Link Between
Planning and Controlling
 Planning identifies the goals
and standards that an
organization should aim for
while controlling ensures
that the performance of the
whole organization conforms
to the outlined plans
 Planning provide the
baseline of the company’s
future while controlling
becomes the tool that
ensures the company’s
success
Control Methods
and System
 In implementing control
methods and techniques,
the manager must be
aware of the timeliness
by which they can apply
certain control
 The control measures
based on timeliness are as
follows:
1. Feedforward control
2. Concurrent control
3. Feedback control
Methods and
Systems in
Monitoring and
Controlling the
General Conduct of
Company
Operations
 Administrative Control
 Delegation
 Evaluation
 Financial Reports
 Performance Appraisal
 Policies and Procedures
 Quality Control
Control Methods
and System:
Accounting/
Financial
Controls
Balance Sheet
provides a summary
of the company’s
financial position
over a period of
Income Statement
reports profits
earned or losses
incurred over a
given period
Control Methods
and System:
Marketing
Controls
1. Strategic control –
refers to processes
implemented to
control the formulation
and execution of
strategic plans.
1.1 Marketing
effectiveness –
how well marketing
activities and
functions are
coordinated
1.2 Marketing audit
– This is a detailed
and systematic
analysis of past and
present marketing
activities of the
2. Annual plan control –
This method uses annual
marketing targets as
performance standards to
determine whether the
planned results or outcomes
were achieved.
2.1 Sales analysis
analyzing a company’s
sales data to determine
trends and changes in
sales figures and identify
any discrepancy or
variance in performance.
2.2 Market share
analysis
determines the
overall standing of
the company against
its competitors.
2.3 Marketing
expenses to sales
ratio comparing
marketing expenses
with the achieved
sales of the company.
3. Customer tracking
– These are methods
that determine customer
behavior and their
reactions to marketing
activities.
4. Profit control – This
determines the
profitability of company
activities and identifies
where the company is
making or losing money.
5. Efficiency control –
keeps track of the
efficiency of marketing
expenditures such as sales
force, advertising, sales
promotion, and
Budgeting
Budgets
 are quantitative
expressions of plans
set by the
management for a
specific period
Budget Plan
 summarized the costs
required for the
resources or inputs
needed to implement
plans, programs, and
activities
2 Parts of
Budget Plan
1. Direct costs – expenses
directly related to the
activity
2. Indirect costs – are costs
that are not directly related
to a project or activity but
are needed for the smooth
Specific Cost in
the Budget Plan
1. Operational costs – These
are the direct costs of doing
the actual work, activity, or
project.
Examples are the supplies or
raw materials needed in the
production of a good.
2. Organizational costs –
These are indirect costs that
refer to activities that
support operational plans.
Examples: maintenance of
the office workspace, and
utilities such as internet, and
3.Staffing costs – These
are also called labor
costs and refer to the
wages or salaries of
people who perform
the actual work.
4.Capital costs – These
are fixed, one-time
costs for large
investments such as
heavy equipment,
facilities, land, and
END

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