Administracion

Business Management

Controlling

Concept

The process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.

Theprocess of developing standards based on organization objectives, comparing current performance to standards, and taking remedial action to correct deviations

Importance

Is necessary because:› The need for controlling the activities of individuals and organizations.

› The rapidity of change.

› The growing complexity of today´s organizations.Control Principles

← Principle of assurance of objective:

› The task of control is to detect potential or actual deviation from plans early enough to permit effective correctiveactions for accomplish objectives.

← Principle of efficiency of controls:

› Control techniques are efficient when they detect causes of actual or potential deviations from plans with aminimum of costs.

← Principal of control responsibility:

› The primary responsibility for the exercise of control rests in the manager charged with the execution of plans.

←Principle of direct control:

› The higher the quality of managers and their subordinates, the less will be the need for indirect controls.

← Principle of reflections of plans:› The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effectively trhey will serve the interests of the enterprise and its managers.← Principle of organizational suitability:

The more controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitatecorrection of deviations from plans

← Principle of individuality of controls:

› Effective controls require consistency with the position, operational responsibility, ability to...