ABM .ppt
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1) The document discusses principles of control from a presentation given by Nitin Sachdeva at Amity Business School. 2) It defines control and explains its importance in accomplishing goals, ensuring efficiency, and creating order. 3) The basic control processes are established as setting standards, measuring performance against standards, and correcting variations. 4) Control tools discussed include management audits, balanced scorecards, budgets, and ratio analysis.
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Controlling is one of the key managerial functions that involves monitoring performance, comparing results to standards, and taking corrective actions. There are three main types of organizational control systems: output control using budgets and goals, behavioral control through direct supervision, and bureaucratic control via rules and procedures. Additionally, clan control focuses on shared values and norms to influence behavior within an organization. Effective control requires establishing standards, measuring performance, identifying deviations, and implementing appropriate actions to minimize variations from objectives.Controlling in Management
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Controls and the Control Process
Learning Objectives
After Studying This Chapter, Students Should Be Able To
揃 Understand the elements of control, measurement tools, and corrective steps
揃 Differentiate among the types of controls utilized within an organization
揃 Employ control strategies for effective management
揃 Identify which control processes are effective in an operational setting
揃 Describe an integrated planning process
Chapter Summary
Chapter 7 focuses on maintaining control by becoming adept at utilizing various control techniques and processes.
Components of the Control Process
There are four basic components of the control process:
1. Planning: Sets the directions and allocates resources.
2. Organizing: Brings people and material resources together in working combinations.
3. Leading: Inspires people to best utilize these resources.
4. Controlling: Checks that the right things happen, in the right way, and at the right time.
Objectives and Standards
揃 Objectives provide the performance targets.
揃 Output standards measure results in terms of performance quantity, quality, cost, or time.
揃 Input standards measure effort in terms of the amount of work expended in task performance.
Measurement Tools
Managers are able to not only adopt measurement tools by which success can be determined, but they also can use historical comparison (historical information), relative comparison (comparing to performances of others), or engineering comparison (comparing to scientific standards as a means of evaluating performance).
Corrective Action
The last step in the control process is to take any action necessary to correct or improve future performance. Management by exception can be used to direct action on problems requiring more urgent attention.
Effective Controls
The best managers, by contrast, are proactive and positive in applying the control process to full advantage. Effective controls in organizations share the following characteristics:
揃 Controls are understandable: They support decision making by presenting data in understandable terms; they do not involve complex reports and hard-to-understand statistics.
揃 Controls encourage self-control: They allow for mutual trust, good communication and participation among everyone involved.
揃 Controls are timely and exception-oriented: They report deviations quickly, lending insight into why a performance gap exists and what you can do to correct it.
揃 Controls are positive in nature: They emphasize their contribution to development, change, and systems improvement; they deemphasize their role in penalties and reprimands.
揃 Controls are fair and objective: They are considered impartial and accurate by everyone; they are respected for one fundamental purposeperformance enhancement.
揃 Controls are flexible: They leave room for individual judgment and can be modified to fit new circumstances as they arise.
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After Studying This Chapter, Students Should Be Able To
揃 Understand the elements of control, measurement tools, and corrective steps
揃 Differentiate among the types of controls utilized within an organization
揃 Employ control strategies for effective management
揃 Identify which control processes are effective in an operational setting
揃 Describe an integrated planning process
Chapter Summary
Chapter 7 focuses on maintaining control by becoming adept at utilizing various control techniques and processes.
Components of the Control Process
There are four basic components of the control process:
1. Planning: Sets the directions and allocates resources.
2. Organizing: Brings people and material resources together in working combinations.
3. Leading: Inspires people to best utilize these resources.
4. Controlling: Checks that the right things happen, in the right way, and at the right time.
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揃 Objectives provide the performance targets.
揃 Output standards measure results in terms of performance quantity, quality, cost, or time.
揃 Input standards measure effort in terms of the amount of work expended in task performance.
Measurement Tools
Managers are able to not only adopt measurement tools by which success can be determined, but they also can use historical comparison (historical information), relative comparison (comparing to performances of others), or engineering comparison (comparing to scientific standards as a means of evaluating performance).
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The last step in the control process is to take any action necessary to correct or improve future performance. Management by exception can be used to direct action on problems requiring more urgent attention.
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Learning objective: Examine methods to build your capacity to foster high-performing teams
As organizations become increasingly collaborative, the nature of teamwork has evolved significantly. Today, team leaders often find themselves managing virtual teams across various time zones, navigating home-office distractions, and addressing a range of personal challenges their team members may face. In this dynamic workplace, effective leadership requires a blend of traditional and modern skills to drive results and foster a supportive team workplace.
This course is designed to equip you with essential skills for leading and participating in todays varied and remote teams. You will explore the stages of team development, learn practical teamwork strategies, and familiarize yourself with collaboration tools that enhance productivity and cohesion. The seminar emphasizes creating a facilitative油workplace油by empowering team members to make decisions at all levels, which can significantly strengthen team dynamics and engagement.油
Additionally, you will gain insights into promoting a compassionate and caring approach, ensuring that team members feel supported and valued. Join us to develop the capabilities needed to lead your team effectively, achieve organizational goals, and build a resilient, collaborative workplace.油
At the end of the seminar, attendees will:
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Is Design Operations a Business Strategic Function?
To answer this question, we explored the job market across the UK, US, and EU (minus the UK) to understand how DesignOps is positioned today. The data speaks for itself: DesignOps remains an underdefined discipline, with unclear career paths and expectations, leading to a confusing market and sometimes unrealistic demands.
Whats the solution? Awareness and Intentionality. Vietnam Investment Review - featuring Tran Quoc Bao A Visionary Leader Reshap...
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Dr. Tran Qu畛c B畉o: A Visionary Leader Reshaping Healthcare in Vietnam and Beyond
Dr. Tran Qu畛c B畉o, the CEO of Prima Saigon, stands as a transformative figure at the intersection of healthcare and finance. His strategic vision and leadership have not only advanced the medical landscape in Vietnam but also placed the country firmly on the global healthcare stage. Under his stewardship, Prima Saigon, Vietnam's premier international daycare and ambulatory hospital, has become a benchmark for medical excellence and innovation. Dr. B畉os leadership is not limited to shaping his institution but extends to driving substantial change in the healthcare industry across Asia and beyond.
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Beyond his work in healthcare administration, Dr. B畉o is a highly regarded figure in the field of healthcare finance. He holds several prestigious financial credentials, including CFA速, CMT速, CPWA速, and FMVA速. With these qualifications, Dr. B畉o has played a pivotal role in over $2 billion in healthcare mergers and acquisitions (M&A) transactions, reshaping the healthcare investment landscape in Vietnam. His unique ability to blend financial strategy with healthcare expertise has made him a thought leader in the sector, influencing global trends and investment strategies in medical services.
Dr. B畉os influence extends far beyond his day-to-day leadership at Prima Saigon. He serves as an advisory board member for Asian Healthcare & Hospital Management, a prestigious publication that influences healthcare policy on a global scale. His contributions to healthcare discussions are regularly featured in major international media, with over 20 articles published in top publications such as Bloomberg, Forbes, US News, Travel & Leisure, and Voice of America. These insights reflect his deep understanding of healthcare investment, innovation, and management, and his ability to anticipate future trends in the sector.strategic management research: Dynamic talent management capabilities and org...
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Today's business environment is becoming increasingly dynamic, and the concept of agility is gaining attention in the corporate world and in academia. The objective of our research is to explain how talent management (TM) can shape talents as key human resources, according to company-specific agility needs, and thus contribute to gaining competitive advantage in dynamic firm environments.
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Reliability and Validity
Quantitative Methodology
Reliability and validity are important aspects of selecting a survey instrument. Reliability refers to the extent that the instrument yields the same results over multiple trials. Validity refers to how well the instrument measures what you intend it to measure. In research, there are three ways to approach validity and they include content validity, construct validity, and criterion-related validity.
Content validity evaluates how well the items on the scale represent or measure the information you intend to assess. Do the questions you ask represent all the possible questions you could ask?
Construct validity measures what the calculated scores represent and whether you can generalize them. Construct validity uses statistical analyses, such as correlations, to verify the relevance of the questions. You can correlate questions from an existing, reliable instrument with questions from the instrument under examination to determine if construct validity is present. High correlation between the scores indicates convergent validity. If you establish convergent validity, you support construct validity.
Criterion-related validity refers to how well the instruments scores predict a known outcome that you expect them to predict. You use statistical analyses, such as correlations, to determine if criterion-related validity exists. You should correlate scores from the instrument with an item they knew to predict. If a correlation of > .60 exists, criterion related validity exists as well.
You can assess reliability using the test-retest method, alternative form method, internal consistency method, split-halves method, and inter-rater reliability.
Test-retest is a method that administers the same instrument to the same sample at two different points in time, perhaps one year intervals. If you find that the scores at both time periods correlate highly (> .60), you can consider them reliable. The alternative form method requires two different instruments consisting of similar content. You must have the same sample take both instruments, and then you correlate the scores from both instruments. If you find high correlations, you can consider the instrument reliable. Internal consistency uses one instrument administered only once.
You use the coefficient alpha (or Cronbachs alpha) to assess the internal consistency of the items. If the alpha value is .70 or higher, you can consider the instrument reliable. The split-halves method also requires one test administered once. The number of items in the scale are divided into halves and a correlation is taken to estimate the reliability of each half of the test. To estimate the reliability of the entire survey, the Spearman-Brown correction must be applied. Inter-rater reliability involves comparing the observations of two or more individuals and assessing the agreement of the observations. Kappa values can be calculated in this instance. QuestionPlanning in Management,NATURE,CHARTACTERISTICS,STEPS,TYPES,POLICY,PROCEDURES,...
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This presentation explores communication skillsTraktor Pro Crack + License Key Free Download [2025]![Traktor Pro Crack + License Key Free Download [2025]](https://cdn.slidesharecdn.com/ss_thumbnails/generalsciencenotes-250303184328-484ccf79-thumbnail.jpg?width=560&fit=bounds)
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Certified Banking Data Privacy Law and Regulation - Module 9.pptxABM .ppt
- 1. Amity Business School Topic : Principals of Control Subject: Advanced Business Management Name: Nitin Sachdeva Enrolment No.: A0130321018 Batch: Ph. D. in Management (Part Time) (Jul 2021)
- 2. Amity Business School Disclaimer: The purpose of this presentation is strictly educational and should not be used for commercial purpose. 2
- 3. Amity Business School 1. Meaning of Control Control is a function of management which helps to check errors in order to take corrective actions. It is the process that measures current performance and guides it towards some predetermined objectives. Planning and controlling are closely related. In fact, some writers on management think that these functions cannot be separated. They may be viewed as the blades of pair of scissors. 3 Reference: MANAGEMENT by Heinz Weihrich
- 4. Amity Business School 2. Importance of Controlling Accomplishing organisational goals: The controlling function measures progress towards the organizational goals and brings to light the deviations. Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. 4 Reference: NCERT
- 5. Amity Business School 2. Importance of Controlling Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organization. It helps to minimize dishonest behavior on the part of the employees by keeping a close check on their activities. Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organizational goals. Each department and employee is governed by predetermined standards which are well coordinated with one another. 5 Reference: NCERT
- 6. Amity Business School 3. Basic Control Processes Basic steps for controlling the processes involves 3 steps: 1) Establishing Standards 2) Measuring Performance against established standards 3) Correcting variation from standards and plans 6 Reference: MANAGEMENT by Heinz Weihrich
- 7. Amity Business School 3.1 Establishing Standards The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organization strives to work. Benchmarking is a concept that is now widely accepted. It is an approach for setting for setting goals and productivity measures based on best industry practices. 7
- 8. Amity Business School 3.2 Measuring Performance Measurement of performance is not always practicable, the measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. 8
- 9. Amity Business School 3.3 Correction of Deviations Correction of deviations is the point at which control can be seen as a part of the whole system of management and can he related to the other managerial functions. Managers may correct deviations by - Redrawing their plans - Modifying their goals - Through reassigning of Duties - Through clarifying of duties or the job 9
- 10. Amity Business School 4. Control Tools Manangement Audits & MIS Balance Scorecard Financial Controls (Budgets, Ratio Analysis) 10
- 11. Amity Business School 4.1 MANAGEMENT AUDIT & MIS Management audit refers to systematic appraisal of the overall performance of the management of an organization. The purpose is to review the efficiency and effectiveness of management and to improve its performance in future periods. It is helpful in identifying the deficiencies in the performance of management functions. Management Information System (MIS) is a computer based information system that provides real-time information and support in effective managerial decision- making. 11
- 12. Amity Business School 4.2 Balance Scorecard Factors used to develop scorecard goals and measures : Financial performance Customer Satisfaction Internal process improvement Innovation and learning 12 Reference: John Wiley & Sons, 2013
- 13. Amity Business School 4.3 Financial Controls Budgets 13 Reference: Management Principles Budget manages firms costs and expenses to control them in relation to budgeted amounts. Thus, management determines which aspects of its financial condition, such as assets, sales, or profitability, are most important, tries to forecast them through budgets, and then compares actual performance to budgeted performance. At a strategic level, total sales and indicators of profitability would be relevant strategic controls.
- 14. Amity Business School 4.3 Financial Controls Ratio Analysis 14 Reference: John Wiley & Sons, 2013 Ratio Analysis Profit Ratios, Stock turnover, Current Ratio, Debt Cycle etc.
- 15. Amity Business School 5. Limitations Difficulty in setting quantitative standards : Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc. Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom. Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. 15 Reference: NCERT
- 16. Amity Business School Presented by: Nitin Sachdeva Enrolment No.: A0130321018 E: nitin.sachdeva@s.amity.edu 16
Editor's Notes
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