Controling

Business Management " Administracion"

Controlling

Concept

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

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

ImportanceIs necessary because:

› The need for controlling the activities of individuals and organizations.

› The rapidity of change.

› The growing complexity of today´sorganizations.

Control Principles

← Principle of assurance of objective:

› The task of control is to detect potential or actual deviation from plans early enough to permiteffective corrective actions for accomplish objectives.

← Principle of efficiency of controls:

› Control techniques are efficient when they detect causes of actual or potentialdeviations from plans with a minimum of costs.

← Principal of control responsibility:

› The primary responsibility for the exercise of control rests in the manager charged with theexecution 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 ofreflections 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 theenterprise 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 facilitate correction of deviations from plans

← Principle of individuality of controls:

› Effective controls require consistency with the position, operational...