Introduction to Controlling MBA-EVENING 

Principles of Management

Presented ToSir Zeeshan Hussain

GROUP MEMBERS

ALI AHMED(58894)System & compliance asst.Soorty Enterprises LTD

SUMEEL AHMED(59175)Sr. Production OfficerShabbir tiles LTD.

USMAN ADIL(58896)Production PlanningInternational Steels Ltd.

MUHAMMAD ARSLAN(58849)TeacherDiamond public School

LEARNING OUTCOMES Definition of Controlling Importance & Purpose Link of Planning and controlling The controlling Process Steps Organizational Performance Measurement & Tools of Organizational

Performance Informational Control & MIS Role of MIS in management

Last function of management Monitoring of current performance Comparison against standards Taking corrective actions To achieve organizational goal

Controlling

Management can indicate the future steps to be taken.

It helps employees and managers to achieve the goal

Efficiently achievement of organizational goal and tasks.

Enhance the physical security and safety at workplace.

Technical Errors can be traced during performance

Ensuring activities completed in a way that leads to accomplishment of goal.

Importance and Purpose

Link of Planning & Controlling

Goals, objectives,

Strategies and Plans

Monitoring, Measuring, Comparison

Planning

Controlling

Structure, Scheduling

Organizing

Motivation, Communication

, Leadership

Leading

The Control Process1.

Measurement of

Performance

2. Comparison of Actual and

Standard

3. Taking Managerial

Action

The Control Process

Standards are the plans or the targets which have to be achieved in the course of business function.

Standards generally are classified into two:

a.Measurable or tangible

b.Non-measurable or intangible

Establishment of Standards

• Criteria (What)• Employees

• Satisfaction

• Turnover

• Absenteeism

• Budgets

• Costs

• Output

• Sales

What we Measure:

Step 1Measuring Performance:

Sources of Information (How) Personal

observation Statistical

reports Oral reports Written

reports

How We Measure:

Measuring Performance:

Common Sources of Information for Measuring Performance

Determining the degree of variation between actual performance and the standard. Significance of variation is determined by:

The acceptable range of variation from the standard (forecast or budget).

The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).

17–13

Step 2Comparing Performance:

Defining the Acceptable Range of Variation

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Courses of Action “Doing nothing”

Only if deviation is judged to be insignificant.

17–15

Step 3

Taking Managerial Action

Correcting actual (current) performance:

• Immediate corrective action to correct the problem at once.

Change

strategy Change

structure

Change compensation scheme

Redesign Training

programs

Redesign jobs

Fire employe

es

Revising the standardExamining the standard to ascertain whether or not the standard is realistic, fair, and achievable. Upholding the validity of the standard.

Resetting goals that were initially set too low or too high.

Managerial Decisions in the Control Process

Performance The end result of an activity

Organizational Performance The end results of organization’s task and

activities Designing strategies, work processes, and

work activities. Coordinating the work of employees.

ORGANIZATIONAL PERFORMANCE CONTROLLING

Organizational Productivity

Productivity:

The overall output of goods divided by the inputs needed to generate that output. How employees efficiently do

their work.

Inputs: costs of resources (materials, labor expense, and facilities)

Output: sales revenues

MEASURES OF ORGANIZATIONAL

PERFORMANCE

MEASURES OF ORGANIZATIONAL PERFORMANCE

Organizational Effectiveness: Measuring how appropriate

organizational goals. How well the organization is achieving

its goals

Three types of tools for MOP: Feed forward Control Concurrent Control Feedback Control

Feed forward Control

A control that taking preventative action before occurrence of problem.

Concurrent Control

Taking action while the activity is in progress.

TOOLS FOR MEASURES OF ORGANIZATIONAL

PERFORMANCE

Feedback Control Taking corrective action after an activity is done.

An action is after-the-fact, when the problem has already occurred.

TOOLS FOR MEASURES OF ORGANIZATIONAL

PERFORMANCE

• Provide managers with information on the effectiveness of their planning efforts.

• Enhance employee motivation.

ADVANTAGES OF FEEDBACK CONTROLS

TYPES OF CONTROLS

Information Controls

Purposes of Information Controls:

As a tool to help managers control other organizational activities.

How is information used in controlling

Managers need The right information at the right time and

in the right amount.

Information Controls

Management Information Systems (MIS)

MIS is defined as

A system which provides information support for decision making in the organization.

MIS is also known as

Information system /Information and decision system/ Computer based information system

Role of MIS

Operational management Day to day operation of the business. It needs information on day to day basis to perform

the operations

Middle management Problem solving Progress monitoring Short term target setting

Role of MIS (cont.)

Top Management

Long term growth SWOT Company goals and objectives

Advantages of MIS

Companies are able to highlight their strength and weakness

Control revenue reports & employees performance record.

Company improve their business operations and process.

Giving an overall picture of the company.

USERS OF MIS

Case Application

Baggage Blunders

British Airways for $8.6 billion, is London Heathrow Airport.

Has more than 10 miles of belts for moving luggage.

100 million hours in manpower, opening day didn’t work out as planned

Planning:

30 million passengers expected to pass through it annually.

With 96 self-service check-in kiosks, more than 90 fast check-in bag drops, 54 standard check-in desks, and miles of suitcase-moving belts estimated to be able to process 12,000 bags per hour

Baggage Blunders (cont.)

Problems occurred:

Arriving passengers waited more than an hour for their bags.

Flights left with empty cargo holds.

Sometime on day one, the airline checked in only those passengers with no luggage.

And it didn’t help that the moving belt system jammed at one point.

 Arriving passengers waited more than an hour for their bags.

Departing passengers tried in vain to check in for flights.

Flights left with empty cargo holds.

Sometime on day one, the airline checked in only those passengers with no luggage.

And it didn’t help that the moving belt system jammed at one point.

Baggage Blunders (cont.)

a few broken escalators, some hand dryers that didn’t work, a gate that wouldn’t function at the new Underground station, and inexperienced ticket sellers

Corrective Action:

Britain’s Department of Transportation released a statement calling for British Airways and the airport operator BAA to “work hard to resolve these issues and limit disruptions to passengers.”

Problems can be prevented if British Airways had only tested the system. But thorough runs of all systems “from toilets to check in and seating” took place six months before opening, including four full-scale test runs using 16,000 volunteers.

 

Customer satisfaction survey showed that 80 percent of passengers waited less than five minutes to check in.

passengers are extremely satisfied with the terminal’s facilities.

Baggage Blunders (cont.)