Podcast
Questions and Answers
What are the five core functions of management?
What are the five core functions of management?
Planning, organizing, staffing, directing/leading, controlling
What is the purpose of controlling in management?
What is the purpose of controlling in management?
Controlling ensures that all activities are completed according to the plans and objectives set by the organization.
Why is control considered an essential function in the management cycle?
Why is control considered an essential function in the management cycle?
Control brings the management cycle back to the planning function by uncovering deviations from standards, analyzing the causes, and initiating corrective actions.
Which of the following is NOT a limitation of controlling?
Which of the following is NOT a limitation of controlling?
What is the relationship between planning and controlling?
What is the relationship between planning and controlling?
Describe the first step in the controlling process.
Describe the first step in the controlling process.
Which of the following is NOT considered a type of performance standard?
Which of the following is NOT considered a type of performance standard?
What is the purpose of comparing measured performance to stated standards?
What is the purpose of comparing measured performance to stated standards?
Explain the role of corrective actions in the controlling process.
Explain the role of corrective actions in the controlling process.
Which of the following is NOT a requirement for effective control?
Which of the following is NOT a requirement for effective control?
Which type of control system helps to anticipate problems and take corrective action before they occur?
Which type of control system helps to anticipate problems and take corrective action before they occur?
Describe a common example of a feedback control.
Describe a common example of a feedback control.
What is the most traditional method of controlling?
What is the most traditional method of controlling?
What is the purpose of breakeven analysis?
What is the purpose of breakeven analysis?
What is the main purpose of budgetary control?
What is the main purpose of budgetary control?
What are the key advantages of budgeting?
What are the key advantages of budgeting?
What is the main purpose of return on investment (ROI)?
What is the main purpose of return on investment (ROI)?
Which of the following is NOT a type of ratio analysis?
Which of the following is NOT a type of ratio analysis?
What is the purpose of responsibility accounting?
What is the purpose of responsibility accounting?
What is the main objective of management audit?
What is the main objective of management audit?
Describe the main purpose of PERT and CPM.
Describe the main purpose of PERT and CPM.
What is the primary purpose of a management information system (MIS)?
What is the primary purpose of a management information system (MIS)?
Which of the following is NOT an advantage of using a management information system?
Which of the following is NOT an advantage of using a management information system?
Flashcards
Controlling Definition
Controlling Definition
Ensuring activities align with plans in an organization.
Controlling Nature
Controlling Nature
Essential, goal-oriented, ongoing process focusing on action, and integrated.
Controlling Purpose
Controlling Purpose
Ensuring activities meet standards, helping in future planning.
Controlling Importance (Accomplishing Goals)
Controlling Importance (Accomplishing Goals)
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Controlling Importance (Judging Standards)
Controlling Importance (Judging Standards)
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Controlling Importance (Resource Use)
Controlling Importance (Resource Use)
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Controlling Importance (Coordination)
Controlling Importance (Coordination)
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Controlling Importance (Order & Discipline)
Controlling Importance (Order & Discipline)
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Controlling Importance (Employee Motivation)
Controlling Importance (Employee Motivation)
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Relationship: Planning & Controlling
Relationship: Planning & Controlling
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Study Notes
Module 5: Functions of Management - Controlling
- Controlling is a crucial management function, ensuring activities align with plans.
- It's a process where managers ensure actual activities match planned activities.
- Managerial control involves measuring accomplishments against standards and correcting deviations to meet objectives (Koontz and O'Donnell).
- Controlling isn't the last step; it loops back to planning.
- It identifies performance deviations, analyzes causes, and implements corrective actions.
- This process refines future plans based on past issues.
Nature and Purpose of Control
- Controlling is essential and goal-oriented.
- It ensures activities conform to standards.
- It's a continuous process.
- Control focuses on the future, as the past cannot be controlled.
- It involves measurement and action.
- Controlling is a pervasive function for managers.
Importance of Controlling
- Essential for effective planning.
- Helps organizations achieve goals.
- Measures progress.
- Identifies deviations and suggests corrective actions.
- Leads to organizational alignment.
- Enables accurate standard evaluation.
- Aids in resource efficiency (reduction in wastage).
- Improves employee motivation.
- Employees understand performance standards.
Limitations of Controlling
- Setting quantitative standards can be difficult.
- Control systems may struggle with external factors (e.g., government policies, competition).
- Employee resistance to control measures.
- Controlling can be costly.
- Control systems should align with managerial roles and responsibilities.
Relationship between Planning and Controlling
- Planning and controlling are interconnected.
- Control relies on predetermined performance standards created by planning.
Control Process
- Establishing standards (benchmarks).
- Measuring performance.
- Comparing performance against standards.
- Taking corrective actions.
Techniques of Managerial Control
- Personal Observation: Direct, but time-consuming.
- Statistical Reports: Uses data analysis (averages, ratios).
- Breakeven Analysis: Shows the point where revenue equals costs.
- Budgetary Control: Planning and measuring performance via budgets.
- Sales budget, production budget, material budget, cash budget, etc.
- Return on Investment (ROI): Measures efficiency of capital utilization.
- Ratio Analysis: Financial evaluations using ratios.
- Liquidity, solvency, and profitability ratios.
- Responsibility Accounting: Divides an organization into responsibility centers for accountability.
- PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method): Network techniques for planning and controlling complex projects.
- Management Information Systems (MIS): Computer-based systems for providing information for decision-making.
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