Management - Controlling Concepts

Study Notes

Controlling is the process of monitoring, comparing, and correcting work performance.
Managers need to evaluate activities and compare actual performance to desired standards.
Effective controls ensure activities lead to goal attainment.
The effectiveness of controls depends on how well they support employee and manager goal achievement.

Planning and organizational structure creation facilitate efficient goal achievement.
Effective leadership motivates employees.

Planning: goals, objectives, strategies, plans
Controlling: standards, measurements, comparison, actions
Organizing: structure, human resource management
Leading: motivation, leadership, communication, individual and group behavior

Budgeting: Financial plans outlining expected revenues and expenditures, comparing actual performance to budget, and corrective actions.
Performance Management by Objective (MBO): approach where managers and employees set specific objectives aligned with organizational goals.
Statistical Quality Control (SQC): uses statistical methods to monitor and control processes, common in manufacturing to ensure product quality and consistency.

Audits: Internal and external examinations of financial statements, processes, and operations to ensure compliance with regulations, detect fraud, and assess control effectiveness.
Balanced Scorecard: Strategic management tool providing a comprehensive view of organizational performance considering financial, customer, internal processes, and learning perspectives to align business activities with organizational vision and strategy.
Key Performance Indicators (KPIs): Specific metrics used to measure performance against strategic goals, including sales growth, profit margins, customer satisfaction, and employee productivity.