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1
Outline
 Define Controlling & its importance .
 Controlling Process Stages …
 Controlling Types & when does it take place …..
 The Objectives Of Controlling….
 The Impact Of Controlling…….
 Tools For Measuring Organizational performance..
 Effective Controlling requirements…..
 Controlling Examples….
2
Control :
* A process of monitoring performance and taking
action to ensure desired results .
* Has a positive and necessary role in management
process .
 Importance :
* Changes the environment of an organization
*Reduces the complexity of the activities .
*Solving the mistakes occurred by the members .
*Empowering employees and protecting the
workplace .
3
4
Controlling Process Stages:
5
6
Controlling Types and when does it take places:
7
Controlling Objectives:
8
Impact of Controlling on organizational
performance:
 Measuring how appropriate organizational goals are and
how well the organization is achieving its goals.
 Systems resource model
 The ability of the organization to exploit its environment in
acquiring scarce and valued resources
 The process model
 The efficiency of an organization’s transformation process in
converting inputs to outputs
 The multiple constituencies model
 The effectiveness of the organization in meeting each
constituencies’ needs
9
The output of controlling of An Organization:
 Profits
Return on revenue
 Return on shareholders’ equity
Growth in profits
Revenues per employee
Revenues per dollar of assets
Revenues per dollar of equity
10
Tools for measuring organizational performance:
 Feed Forward Control:
Control that takes place before a work activity is
done.
 Concurrent Control:
Control that takes place while a work activity
is in progress.
 Management by Walking Around:
A term used to describe when a manager is out
in the work area.
 Feedback Control:
Control that takes place after a work activity is
done.
11
Balanced Scorecard:
A performance measurement tool that
examines more than just the financial perspective
which measures a company’s performance in four
areas..
 Financial
 Customer
 Internal Processes
 People /Innovation/Growth/Assets
12
Management Information Systems (MIS):
A system used to provide management with needed
information on a regular basis.
Benchmarking:
The search for the best practices among competitors
or non-competitors that lead to their superior performance.
Cross-Cultural Issues:
 The use of technology to increase direct corporate control of
local operations
 Legal constraints on corrective actions in foreign countries
 Difficulty with the comparability of data collected from
operations in different countries
13
Other measurement scales of Controlling:
Economic Value Added (EVA):
How much value is created by what a company does
with its assets, less any capital investments in those assets:
the rate of return earned over and above the cost of capital.
Market Value Added (MVA):
The value that the stock market places on a firm’s
past and expected capital investment projects
14
Effective Controlling Requirements:
15
Examples of Controlling:
16
17
18

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Foundation of-controlling

  • 1. 1
  • 2. Outline  Define Controlling & its importance .  Controlling Process Stages …  Controlling Types & when does it take place …..  The Objectives Of Controlling….  The Impact Of Controlling…….  Tools For Measuring Organizational performance..  Effective Controlling requirements…..  Controlling Examples…. 2
  • 3. Control : * A process of monitoring performance and taking action to ensure desired results . * Has a positive and necessary role in management process .  Importance : * Changes the environment of an organization *Reduces the complexity of the activities . *Solving the mistakes occurred by the members . *Empowering employees and protecting the workplace . 3
  • 4. 4
  • 6. 6
  • 7. Controlling Types and when does it take places: 7
  • 9. Impact of Controlling on organizational performance:  Measuring how appropriate organizational goals are and how well the organization is achieving its goals.  Systems resource model  The ability of the organization to exploit its environment in acquiring scarce and valued resources  The process model  The efficiency of an organization’s transformation process in converting inputs to outputs  The multiple constituencies model  The effectiveness of the organization in meeting each constituencies’ needs 9
  • 10. The output of controlling of An Organization:  Profits Return on revenue  Return on shareholders’ equity Growth in profits Revenues per employee Revenues per dollar of assets Revenues per dollar of equity 10
  • 11. Tools for measuring organizational performance:  Feed Forward Control: Control that takes place before a work activity is done.  Concurrent Control: Control that takes place while a work activity is in progress.  Management by Walking Around: A term used to describe when a manager is out in the work area.  Feedback Control: Control that takes place after a work activity is done. 11
  • 12. Balanced Scorecard: A performance measurement tool that examines more than just the financial perspective which measures a company’s performance in four areas..  Financial  Customer  Internal Processes  People /Innovation/Growth/Assets 12
  • 13. Management Information Systems (MIS): A system used to provide management with needed information on a regular basis. Benchmarking: The search for the best practices among competitors or non-competitors that lead to their superior performance. Cross-Cultural Issues:  The use of technology to increase direct corporate control of local operations  Legal constraints on corrective actions in foreign countries  Difficulty with the comparability of data collected from operations in different countries 13
  • 14. Other measurement scales of Controlling: Economic Value Added (EVA): How much value is created by what a company does with its assets, less any capital investments in those assets: the rate of return earned over and above the cost of capital. Market Value Added (MVA): The value that the stock market places on a firm’s past and expected capital investment projects 14
  • 17. 17
  • 18. 18