The controlling function

1
The controlling function

• Katie Moser, Marlee Jones, Corey Deskins, Kat
  Sorrell

2
Management as a continuous process

• Controlling is determining whether goals are
  being met and what actions to take if performance
  falls short of the goals.

3
Steps in controlling

• 1. Establishing standards for each of the
  companys goals.
• 2. Measuring and comparing performance against
  the established standards to see if performance
  met the goals.
• 3. Taking corrective action when performance
  falls short of the standards.

4
Types of Standards

• Quantity standard establishes the expected amount
  of work to be completed.
• Quality standards described expected consistency
  in production or performance.
• Time standards the amount of time it takes
  complete an activity has an effect on costs, the
  quantity of work completed and often on the
  quality of the work.
• Costs standards is an important measure of the
  success or failure of a firm is financial profit
  or loss.
• Profit equals sales income minus costs.
• Managers can increase profits by either
  increasing sales or decreasing cost

5
Measuring and comparing performance

• Variance is a difference between current
  performance and the standard.
• Can be positive (performance exceeds standard) or
  negative (performance falls short of standard)