...Chapter 7: PLANNING AND CONTROLLING 1. Setting objectives and determining what should be done to accomplish them is the essence of the management function of __________. A. Productivity improvement. B. Controlling. C. Leading. D. Organizing. E. Planning. E 186 KT Fa 2. Planning is important for all of the following reasons EXCEPT: A. Planning is central to the management process. B. Planning is important for staying ahead of the competition. C. Planning help an organization become better at what it does. D. Planning helps an organization to be action oriented. E. Planning eliminates the need for effective leadership. E 187 GT Fa 3. Which one of the following alternatives lists the planning steps in proper order? A. Define objectives, determine current standing relative to objectives, evaluate current accomplishments, identify and choose among alternatives, and implement the plan and evaluate results. B. Define objectives, develop planning premises, determine current standing relative to objectives, identify and choose among alternatives, and implement the plan and evaluate results. C. Define objectives, determine current standing relative to objectives, develop planning premises, analyze possible action alternatives and choose among them, and implement the plan and evaluate results. D. Determine current standing relative to objectives, define objectives...
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...Control System and its Process All organizations business or non-business face the necessity of coping with problems of control. Like other managerial functions the need for control arises to maximize the use of scarce resources and achieve purposeful behavior of organization members. Control Definition “Controlling is determining what is being accomplished that is evaluating the performance and if necessary applying corrected measures so that the performance takes place according to plan.” Based on the definition of control, its following features can be identified: 1. Control is forward looking because one can control future happenings and not the past. However on control process always the past performance is measured because no one can measure the outcome of a happening which has not occurred. 2. Control is both an executive process and, from the point of view of the organizations of the system a result. 3. Control is a continuous process. 4. A control system is a co-ordinated integrated system. Control and other functions Control is closely related with other functions of management because control may be affected by other functions and many affect the functions too. Often it is said ‘Planning is the basis, action is the essence, delegation is the key, and information is the guide for control.’ 1. Planning as the Basis Planning is the basis for control in the sense that it provides the entire spectrum on which control functions...
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...Executive Summery Controlling is a four-step process of establishing performance standards based on thefirm's objectives, measuring and reporting actual performance, comparing the two, andtaking corrective or preventive action as necessary. It actually is a process of monitoring performance and taking action to ensure desired results. Performance standards come from the planning function. No matter how difficult, standards should be established for every important task. Although the temptation may be great, lowering standards to what has been attained is not a solution to performance problems. On the other hand, a manager does need to lower standards when they are found to be unattainable due to resource limitations and factors external to the business. Control helps an organization adapt to changing conditions, limits the compounding of errors, helps an organization cope with complexity, and helps minimize cost. In today’s complex and turbulent environment, all organizations must contend with change. If managers could establish goals and achieve them instantaneously, control would not be needed. But between the time a goal is established and the time it is reached, many things can happen in the organization and its environment to disrupt movement toward the goal or even to change the goal itself. A properly designed control system can help managers anticipate, monitor, and to changing circumstances. Small mistakes and errors do not often seriously damage the health of an organization...
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...There are four main functions of management. 1. Planning. 2. Organizing. 3. Leading. 4. Controlling. Planning. Planning is an important managerial function. It provides the design of a desired future state and the means of bringing about that future state to accomplish the organization's objectives. In other words, planning is the process of thinking before doing. To solve the problems and take the advantages of the opportunities created by rapid change, managers must develop formal long- and short-range plans so that organizations can move toward their objectives. It is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the company's goals and objectives Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known as strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and so objectives and goals...
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...manager does’’. Manager: A manager is he who does various kinds of task and he has the power of supervise the employee to achieve the organizational goals & objectives. Various Managerial skills: Robert L Katz identifies three skills of managers:- (1) Technical skill. (2) Human skill. (3) Conceptual skill. Technical skill: Technical skill is the knowledge or ability of managers to use a process, technique, procedure or any specialized activities. Accounts engineers, surgeons all have their technical skills necessary for their respective professions. Most managers especially at the lower level and mid-level need technical skills for effective task performance. Technical skills are important especially for first line managers, who spend much of their time training subordinates &supervising their related problems. Human skill: Knowledge and ability to work with other people effectively to understand other people, to motivate other people both has individuals and groups. Managers spend much of their time interacting with people both inside and outside their organizations. We may recall here Mint berg’s explanation of how top (And middle) managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent no tours. All of these managerial activities involve other people. Human skill includes the ability to work with others ands get co-operation from in the work group...
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...The management process is a series of activities in a cycle of planning and control where planning is refers to the setting of objectives for an organization and draws a line of how it can be achieved. Controlling activity itself is refers to the implementing plans by using the feedback to accomplish the objectives. In management, control system is necessary in which the activities of different divisions, departments, and sections need to be coordinated and controlled. To be specific, management control system is needed to clearly communicate the organization’s goal, to ensure that managers and employees understand the specific actions required of them to achieve organizational goals, to communicate results of actions across the organization and to ensure that managers can adjust the changes in environment. In Xerox Corporation, they are using planning process as their management control system. Al Senter, the Xerox’s Vice President of Finance in 1990 already stated that the control function must add value to the product by working with line management. Each operating units in Xerox Corporation will draw their own long term planning in order to get reviewed and feedback by the organizations. It’s important to have planning as their one of the control systems since it will set a standard of performance. By this planning process, each of the division general managers in Xerox Corporation will responsible for managing and controlling their subordinate to deliver the committed...
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...Introduction Once managers assume responsibilities for their units, they decide “where they are going” (Planning), who will do what (Organizing), and how to motivate their employees (Leading). In this presentation, we are going to explore how to keep things under control in an organization. It is imperative that all managers should be involved in the control function even if their units are performing as planned. Managers can't really know whether their units are performing properly until they have evaluated what activities have been done and have compared the actual performance with the desired standard. An effective control system ensures that activities are completed in ways that lead to attainment of the organization’s goals. Controlling is related to each of the other function management. Controlling builds on planning, organizing and leading. What is Control? Control is the task of ensuring that activities are carried out and are providing the desired results. In simple terms controlling means setting a target, measuring performance and taking corrective actions required. Management Control Strategy Managers can use one or a combination of three control or styles: 1. Market 2. Bureaucracy and 3. Clan Each strategy serves a different purpose. Market: Uses external market mechanisms, such as price competition and relative market share, to establish standards used in system. Bureaucracy: It emphasizes organizational authority and relies on administrative...
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...MANAGEMENT: SUMMARY FOR FOUNDATIONS OF CONTROL NAME OF TUTORIAL LECTURER: ENCIK SATHISWARAN A/L UTHAMAPUTHRAN TUTORIAL GROUP: L1T3 NAME: CH'NG WEI MING MATRICES NUMBER: A13A0122 SUMMARY In chapter 14 for the fundamentals of management, the important thing that we will learn after studying is : explain the nature and importance of control; describe the three steps in the control process; discuss the types of controls organizations and managers use and discuss contemporary issues in control. For explain the nature and importance of control, control is the management function that involves monitoring activities to ensure that they're being accomplished as planned and correcting any significant deviations. The purpose of control is to ensure that activities are completed in ways that lead to accomplishment of organizational goals. Control is important because it's the only way that managers know whether organizational goals are being met and if not, the reasons why. The value of the control function can be seen in three specific areas which is planning, empowering employees, and protecting the workplace. As the final step in the management process, controlling provides the link back to planning. If manager didn't control, they'd have no way of knowing whether goals were being met. The second reason controlling is important is because of employee empowerment. An effective control system can provide information and...
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...have to be quantified and do not have to be financial - Strategies define how organizations should use their resources to meet these objectives – a well-conceived strategy guides employees in successfully pursuing their organizations’ objectives; it conveys to employees what they are supposed to be doing - Strategic control involves managers addressing the question: Is our strategy valid/is our strategy still valid, and if not, how should it be changed? - Management control focuses on execution and it involves addressing the general question: Are our employees likely to behave appropriately? Do our Employees understand what we expect of them? Will they work consistently hard and try to do what is expected of them (will they pursue the organization’s objectives in line with the strategy)? Are they capable of doing a good job? - Managers addressing strategic control issues have a focus primarily external to the organization; they examine the industry and their organization’s place in it - Managers addressing management control issues have a primarily internal focus; they reflect how they can influence employees’ behaviors in desired ways Causes of Management Control Problems 1. Lack of Direction – some employees perform inadequately simply because they do not know what the organization wants from them; therefore, one function involves informing employees as to how they can direct their contributions to the fulfillment of organizational objectives 2. Motivational Problems – even...
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...Corporate planning of commercial bank: Planning is a pre requisite of every management function . the performance of all other functions like planning, organizing , staffing, directing & controlling is preceded by performance of planning function. So corporate planning is the primary function of any corporate management . it is combination of the activities in the management process which consist of formulation of the objectives & the action to be taken for their achievement. Corporate planning is a bridge between the present & future of the bank . it also provides the framework for decision making . According to koontz & weihrich : Corporate planning involves selecting mission & objectives & the action to achieve them ; it requires decision making ,that is choosing from the alternative future course of the action . Nature of the corporate planning : The essential nature of corporate planning can be high lighted by examining the four major aspects : 1) Its contribution to the purpose & objectives. 2) Its primacy among the manager tasks . 3) Its prevasiveness . 4) The efficiency of resulting plans . Every corporate plan must contribute to the achievements of bank objectives. Importance of corporate planning by commercial bank : 1) To face the challenge of market environment : The commercial bank have to function in changing market environment . there is change in technology , income levels, policies of domestic...
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...1) _______________ involves analyzing a situation, determining goals to be pursued, and deciding upon the actions that will be taken to achieve these goals. | |[pic]A. [pic] Planning | | |[pic]B. [pic] Organizing | | |[pic]C. [pic] Leading | | |[pic]D. [pic] Staffing | | | | 2) The four traditional functions of management include planning, organizing, leading, and service. | |[pic]A. [pic] False | | |[pic]B. [pic] True | | | | 3) Building a dynamic organization is another way of describing which function of management? | |[pic]A. [pic] Controlling | | |[pic]B. [pic] Leading | | |[pic]C. [pic] Organizing | | |[pic]D. [pic] Planning | | | | 4) The macroenvironment includes all of the following EXCEPT: | |[pic]A. [pic] International developments | | |[pic]B. [pic] Government policies | | |[pic]C. [pic] New entrants | | |[pic]D. [pic] Technology | | | | 5) Robert was recently hired as the workplace safety compliance officer at ABC Power Company. Robert will have the responsibility to monitor regulations from which of these government agencies? | |[pic]A. [pic] National Labor Relations Board | | |[pic]B. [pic] Environmental...
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...to 11. 3. Conclusion………………...page 12. 4. Recommendations ………..page 12. 5. Reference………………….page 13. The objectives of this report are to how much we understand that big company’s activities, analysis organisations, and accomplishment of the goals. This report examines Guinness Peat Group plc (GPG)’s activities such as planning for organisation, controlling, structure, and delegation etc. Guinness Peat Group (GPG) is an investment holding company that focuses on various sectors including financial services, textiles, food processing, motor vehicle distribution, building services, property development, and food and produce distribution. About half of its holdings are in Australia and New Zealand, with the rest in Asia, Europe, and the US. Portfolio companies include UK-based thread manufacturer Coats Holdings, New Zealand produce wholesaler Turners & Growers, and residential property developer CIC Australia. In the end of 2010, total number of employees was 23,386, revenue was $2,089.3M, and net profit came to $70.7M. It was requested by Jimmy 1. Explain the importance of planning for this organisation. Planning involves setting the organisation’s goals, establishing a strategy for achieving these goals, and developing a comprehensive set of plans to integrate and coordinate organisational work. According to annual report 2010, GPG (Guinness Peat Group...
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...Production Planning and Control In any manufacturing enterprise production is the driving force to which most other functions react. This is particularly true with inventories; they exist because of the needs of production. In this chapter the relationship of production planning and control to work-in-process inventories is stressed. Objectives of Production Planning Control The ultimate objective of production planning and control, like that of all other manufacturing controls, is to contribute to the profits of the enterprise. As with inventory management and control, this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines and to provide the means for ensuring the operation of the plant in accordance with these plans. Production Planning and Control Functions All of the four basic phases of control of manufacture are easily identified in production planning and control. The plan for the processing of materials through the plant is established by the functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances re-planning is necessary...
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...Managerial Accounting http://edugen.wileyplus.com/edugen/courses/crs4637/rc/jiambalvo3341c... GOAL OF MANAGERIAL ACCOUNTING LEARNING OBJECTIVE 1 State the primary goal of managerial accounting. Virtually all managers need to plan and control their operations and make a variety of decisions. The goal of managerial accounting is to provide the information they need for planning, control, and decision making. If your goal is to be an effective manager, a thorough understanding of managerial accounting is essential. Planning LEARNING OBJECTIVE 2 Describe how budgets are used in planning. Planning is a key activity for all companies. A plan communicates a company's goals to employees aiding coordination of various functions, such as sales and production.A plan also specifies the resources needed to achieve company goals. Budgets for Planning The financial plans prepared by managerial accountants are referred to as budgets. A wide variety of budgets may be prepared. For example, a profit budget indicates planned income, a cash-flow budget indicates planned cash inflows and outflows, and a production budget indicates the planned quantity of production and the expected costs. Consider the production budget for Surge Performance Beverage Company. In the coming year, the company plans to produce 5,000,000 12-ounce bottles. This amount is based on forecasted sales. To produce this volume, the company estimates it will spend $1,500,000 on bottles, $400,000 on ingredients...
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...Basic Planning Basic planning is the process used by management to evaluate the organizational goals. The planning process also includes creating a plan so the set goal can be successfully achieved. The basic planning process is made up of seven steps. The steps are: setting objectives, analyzing and evaluating the environments, identifying the alternatives, selecting the best solution, implementing the plan, controlling and assessing the results. The South Carolina Beauty Bar does not have different managers or departments. Therefore, the owner, manager, and assistant manager play a role in the basic planning process. There are no three levels of management. • Setting Objectives - "Objectives set out what a business is trying to achieve....
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