MANAGEMENT CONTROL SYSTEMS

The managerial function of controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished.

Controlling is the function of every manager from president to supervisor.

BASIC CONTROL PROCESS

Control techniques and systems are essentially the same for cash, office procedures, morale, product quality or anything else. Control process involves the following steps:

Establishment of Standards:

Physical standards.

Cost standards.

Capital standards.

Revenue standards

Programme standards

Intangible standards

Goals as standards

Strategic plans as control points for strategic control.

Measurement of Actual Performance:

Via co-ordination techniques.

Comparing of Actual Performance with Standards.

Correction of Deviations.

REQUIREMENTS FOR EFFECTIVE CONTROLS

Tailoring controls to plans and positions.

Tailoring controls to individual managers.

Controls pointing up exceptions at critical points.

Objectivity of controls.

Flexibility of controls.

Fitting the control system to the organizational climate.

Economy of controls

Controls leading to corrective actions.

TECHNIQUES OF CONTROLS

FEEDBACK CONTROL SYSTEM:

In this system manager measures the actual performance as feedback against standards and then make amendments in the future plans.

FEED FORWARD CONTROL SYSTEM:

In this system manager forecasts the deviations and make the plan.

In feedback system, one says in November that we have lost10, 000,00 in October due to lapses in August, but in feed forward system present progress is analyzed and plans are made.

Feed forward control may be:

Feed forward in engineering.

Feed forward in human system.

Feed forward in management.