Control Process in Management

Home About aim Preserve Your Article Content flavour Guidelines Disclaimer TOS Contact Us make impinge on to content 4 main locomote in control c are for in precaution 4 main step in control process in direction atomic number 18 Control as a focus function learns the sideline steps 1. Establishing standards Standards atomic number 18 criteria against which results are de secrete. They are norms to achieve the goals. Standards are usually calculated in toll of output. They push aside too be measured in non-mo doughary depots the like loyalty, customer attraction, good provide and so forthSome of the standards are as. a. Time standards The goal will be set on the home of sequence lapse in performing a task. b. Cost standards These indicate the monetary expenditures conglomerate per unit of measurement, e. g. material cost per unit, cost per person, and so on c. Income standards These relate to financial rewards received overdue to a particular act ivity like changes volume per month, year etc. d. Market share This relates to the share of the compeverys yield in the market. e. Productivity Productivity buttocks be measured on the basis of units produced per man hour etc. f. gainfulnessThese goals will be set with the reflexion of cost per unit, market share, etc. 2. meter deed Measurement involves par mingled with what is accomplished and what was intended to be accomplished. The cadence of actual mathematical process moldiness(prenominal) be in the units sympathetic to those of predetermined criterion. The unit or the yardstick thus elect be clear, well-defined and easily identified, and should be uniform and homogenous throughout the measurement process. The performance can be measured by the following steps (a) strategical control points It is non possible to outfit everything that is being done.Feature article activeProduction ManagementSo it is necessary to pick strategic control points for measuremen t. Some of these points are (i) Income It is a significant control point and essential be as much per unit of time as was evaluate. If the income is significantly off form the expectation thence the reasons should be investigated and a tonic action taken. (ii) Expenses essence and ope symmetrynal cost per unit must be computed and must be adhered to. keystone expense data must be reviewed periodically. (iii) Inventory Some minimum archive of both the finished product as well as raw materials must be kept in rail line as a buffer.Any heighten in inventory level would determine whether the yield is to be increased or decreased. (iv) look of the product Standards of established feeling must be maintained especially in food processing, drug manufacturing, automobiles, etc. The process should be continuously observed for any discrepancys. (v) Absenteeism Excessive absenteeism of personnel is a unspoiled reflection on the environment and swear out conditions. Absenteeism i n excess of chance expectations must be seriously investigated. (b) Meclzanised measuring devicesThis involves a wide variant of technical instruments utilise for measurement of machine operations, product quality for size and ingredients and production processes. These instruments may be mechanical, electronic or chemical in nature. (c) Ratio summary Ratio analysis is one of the most grave management tools. It describes the relationship of one business covariant to another. The following are somewhat of the important ratios i) Net gross revenue to working swell The working keen must be utilised adequately. If the inventory turnover is speedy then the same working capital can be utilise again and again.Hence for perishable goods, this ratio is high. Any change in ratio will designate a conflict from the norm. ii) Net sales to inventory The greater the turnover of inventory, habitually, the high the profit on investment. iii) Current ratio This is the ratio of current as set (cash, receivables etc. ) to current liabilities, and is utilize to determine a firms exponent to pay the short term debts. iv) Net profits to discharge sale This ratio measures the short-run profitability of a business. v) Net profits to tangible sort out worth Net worth is the diversion among tangible assets (not good will, etc) and amount of money liabilities.This ratio of net worth is used to measure profitability over a long period. vi) Net profits to net working capital The net-working capital is the operate capital at hand. This would determine the ability of the business to finance day-to-day operations. vii) gathering period on credit sales The collection period should be as short as possible. Any divagation from established collection period should be promptly investigated. viii) Inventory to net working capital This ratio is to determine the outcome of working capital tied up in inventory.Generally, this ratio should be less(prenominal) than 80 per cent, ix ) Total debt to tangible net worth This ratio would determine the financial soundness of the business. This ratio should remain as low as possible. (d) Comparative statistical analysis The operations of one beau monde can be helpfully compared with similar operations of another company or with industry averages. It is a very useful performance measuring device. (e) Personal mirror image Personal observation both stately and informal can be used in certain situation as a measuring device for performances, specially, the performance of the personnel.The informal observation is generally a day-to-day routine type. A bus may walk through a store to have a general idea about how people are working. 3. Comparing the actual performance with expected performance This is the active principle of the process. The previous(prenominal) two, setting the goals and the measurement format are the preparatory parts of the process. It is the responsibility of the management to compare the actual performance against the standards established. This simile is less complicate if the measurement units for the standards et and the performance measured are the same and quantified. The comparison becomes more strong when these require personal ratings Ralph C. Davis identifies four phases in the comparison. 1. Receiving the raw data. 2. Accumulation, assortment and recording of this schooling. 3. Periodic evaluation of completed action to date. 4. reputationing the status of deed to higher line authority. At the threesome phase, deviations if any are noted between standards and performance. If clear cut deviations are there, then management must study the- (i) Causes for deviation ii) Effect of deviation (iii) Size of deviation (iv) Positive or negative deviation. 4. Correcting Deviations The concluding element in the process is the pickings strict action. Measuring and comparing performance, catching shortcomings, failures or deviations, from plans will be of no avai l if it does point to the needed corrective action. Thus controlling to be effective, should involve not only the detection of lapses and also probe into the failure spots, obsession of responsibility for the failures at the right quarters, testimony of the best possible teps to correct them. These corrective actions must be applied when the work is in progress. The primary objective should be avoidance of such failures in future. The call for corrective action can be determined from the qualified data as per the standards laid out and the performance evaluation al testifyy done. This step should be taken promptly, otherwise losses may be cumulative and remedial action will be all the more difficult to take. Corrective action must be well balanced, avoiding over controlling and at the same time letting not things to drift.You May Also Like 3 Elements of an Organisation suggested by Allen 14 principles of management suggested by Fayol Advertisement Free Subscription pate of f ake picpic Do you want some more information on this base? Enter your email id picpic Bottom of Form Do you like this post? If you enthral reading PreserveArticles. com, please share this site with your friends.? 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