These indicate the financial expenditures involved per unit, e. If the inventory turnover is rapid then the same working capital can be used again and again. Leading is influencing or prompting the member of the organization to work together with the interest of the organization.
Key expense data must be reviewed periodically. Some of these points are: Repair the existing machine or purchase new machine if it cannot be repaired. The second step in controlling process is the measurement of performance. Determining whether Performance Matches the Standard It is an easy but important step in the control process.
Whether a particular result is to be taken as satisfactory, average or poor should be pre determined so that the persons responsible for that work should be able to assess their performance. Since it is neither easy nor economical to check each and every activity in an organisation, the control should focus on Key Result Areas KRAs which act as the critical points.
The operations of one company can be usefully compared with similar operations of another company or with industry averages. Selecting goals as well as the paths to achieve them is what planning involves. As concerns Taking Corrective Action, a company must use the information gathered from the control process.
The collection period should be as short as possible. Leading involves a number of deferment processes and activates. Rather they regard coordinating as the essence of managership for achieving harmony among individual efforts towards accomplishing group targets.
They must then measure these corrective actions some time down the road to see if they are performing up to corporate expectations. The structure must define the task to be done.
It is required as it helps to serve the objective of effectiveness and efficiency by changing the behavior of the employees. The measurement of actual performance must be in the units similar to those of predetermined criterion.
Measuring the Performance The measurement of performance against standards should be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. They can also be measured in non-monetary terms like loyalty, customer attraction, goodwill etc.
Organizing involves determining how activities and resources are to be assembled and coordinated. If the manager gives attention to every deviation then he will not be able to give enough time for important things.
It needs to be mentioned that, unless managers see the control process through to its conclusion, they are merely monitoring performance rather than exercising control.
It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned to people who can do the best.
It is a very useful performance measuring device. These relate to financial rewards received due to a particular activity like sales volume per month, year etc. They must take action that gives solutions to problems.
It is a significant control point and must be as much per unit of time as was expected. This is the ratio of current asset cash, receivables etc. This comparison is less complicate if the measurement units for the standards set and the performance measured are the same and quantified.
Controlling is the last but not the least important management function process. Standards are criteria against which results are measured. Ratio analysis is one of the most important management tools. The comparison becomes more difficult when these require subjective evaluations Ralph C.
Most organizations prepare formal reports of performance measurements that managers review regularly. The organization can also be defined as an intentionally formalized structure of positions or roles for people to fill in an organization.
Any change in ratio will signal a deviation from the norm.4 Functions of Management Process: Planning, Organizing, Leading, Controlling 4 Basic Functions of Management is a systematic way of doing things. We refer to management as a process to emphasize that all managers, irrespective of their aptitude or skill, engage in some inter-related functions in order to achieve their desired goals.
There are four steps in control process: (1) Setting of control View the full answer Step 1 –– establishing objectives and standards. The control process begins when performance objectives and standards View the full answer Control as a management function involves the following steps: 1.
The four steps in the control process are: Establishing Standards and Methods for Measuring Performance; Measuring the Performance; Determination of. The control process is the system that allows setting, measure, match and tweak any business activities such as production, packaging, delivery and more.
Controlling is an essential part of management process. In fact; without control process entire management is obsolete. Steps in the Control Process Establishing standards and methods for measuring performance Standards are, by definition, simply the criteria of performance.
The control system monitors and evaluates the progress toward your goals and is made up of four steps. The four step process of control helps you to ensure that appropriate goals are set.Download