Scribd
Upload
31 views6 pages

Process of Control: Alfred George P18170 PGDM B

The document outlines the 5 step process of control: 1. Establish standards to measure organizational and departmental goals both qualitatively and quantitatively. 2. Measure actual performance through techniques like sample checking and reports. 3. Compare actual performance to standards to find any deviations. 4. Analyze significant deviations, focusing on key result areas and exceptions. 5. Take corrective actions if deviations exceed acceptable limits by addressing causes such as outdated machinery or defective materials.

Uploaded by

Ganesh Antre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
31 views6 pages

Process of Control: Alfred George P18170 PGDM B

The document outlines the 5 step process of control: 1. Establish standards to measure organizational and departmental goals both qualitatively and quantitatively. 2. Measure actual performance through techniques like sample checking and reports. 3. Compare actual performance to standards to find any deviations. 4. Analyze significant deviations, focusing on key result areas and exceptions. 5. Take corrective actions if deviations exceed acceptable limits by addressing causes such as outdated machinery or defective materials.

Uploaded by

Ganesh Antre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Process of Control

Alfred George
P18170
Pgdm B
1. Establish standards to measure performance
▪ Standards are the benchmarks towards which efforts of entire organisation are
directed
▪ Define goals and plans for organizational departments.
▪ These standards can be expressed both in quantitative and qualitative terms.
▪ Eg: Quantitative: Revenue to be earned, Units to be produced or sold, Cost to be
incurred.
▪ Qualitative-Improving motivation level of employees, improving labour relations.
2. Measure actual performance.
▪ The various techniques for measuring are sample checking, performance reports,
personal observation etc.
▪ Performance should be measured on same basis that the standards have.
▪ Eg: Superior prepares a report regarding the performance of an employee
▪ Various ratios like gross profit ratio, debtor turnover ratio, return on investment,
current ratio etc. are calculated at periodic intervals
3. Comparing Actual Performance with Standards:

▪ Purpose is to find deviations of actual performance with the standards.


4. Analysing Deviations

▪ Some deviations are possible.


▪ Deviations in major areas should be checked.
A) Critical Point control
In an organisation, the control should focus on Key Result Areas.
For example, in a manufacturing organisation, an increase of 10% in labour cost is
more troublesome than an 20% increase in stationary expenses.
B) Management by exception
According to this principle, an attempt to control everything results in controlling nothing.
Important deviations which exceed the prescribed limit should be brought to the notice
of management.
5. Taking corrective action
▪ The last step in the process of controlling involves taking corrective action.
▪ If deviations are in acceptable limit, no action is required.
▪ If it is beyond acceptable limit, quick action should be made.
Causes and corrective measures.
Obsolete machinery - Technological upgradation
Defective material used - Change the quality standards for materials

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy