CONTROLLING
Organization and Management (Lecture)
Grade 11 ABM | SEM 1 2022 | by @crestfalliein
Controlling
RELATIONSHIP BETWEEN PLANNING
★ Gauging whether the objectives
AND CONTROLLING
were fully met; monitoring and
evaluating the current performance
of the organization Planning - starts the management process
★ Involves ensuring that the by formulating SMART objectives and
performance is aligned to the determining how to achieve those
objectives of an organization objectives.
○ By knowing how well your
organization has performed Controlling - completes the management
and taking necessary process by evaluating the achievement of
corrective actions to achieve those SMART objectives and standards that
your objective were set in the planning stage
★ Pertains to the design and
implementation of systems, Control Methods
approaches, and procedures that ● Specific management tools and
measure performance against techniques used to ensure that
plans or standards performance standards are met
ACTIVITIES IN CONTROLLING APPLICATION OF CONTROL METHODS
1. Identifying the gap (variance) between Total Quality Management
what was planned and what was ★ The adoption and application of
accomplished in terms of quantity and quality principles throughout the
quality of work. organization
○ The gap pertains to deviations, ★ Focus on continuous improvement,
errors, mistakes, shortcomings enhancement of product quality, and
experienced as people perform effective customer response.
their work
2. Determining the main cause of Edwards Deming
problems encountered during ➔ Use Statistical Process Control (SPC)
implementation ➔ Involves carefully spotting the defects,
○ As a manager, this is your main tallying them, analyzing their causes,
task in the controlling stage — correcting the detects, and keeping a
to identify what prevents the record of the corrective actions taken
company to achieve its desired ◆ Examples are spreadsheets,
goals control charts etc.
3. Finding ways to correct those
problems. (providing solutions) Accounting Control
4. Preventing those problems from ★ Used as a method for keeping
recurring again financial records and preparing
5. Seeking new ways to improve how financial reports
things will be done in the future. ★ It is the timing of when expenses
and revenue are recognized
★ There are two types:
CONTROLLING
Organization and Management (Lecture)
Grade 11 ABM | SEM 1 2022 | by @crestfalliein
Accrual Accounting Method 3. Use of marketing information to
★ Accrual means the accumulation of develop business strategy.
something overtime 4. Developing better market
★ It recognizes both income and segmentation based on profitability.
expenses at the same time they are 5. Data gathering that contributes to
earned or incurred, and not when relationship building with customers.
the cash is actually paid. 6. Anticipating future needs of
★ Even if there is no payment, revenue customers
and expenses will be recorded
○ Revenue is recorded when it
OTHER CONCEPTS AND APPROACHES
is earned regardless of when USED IN CONTROLLING
the cash payment is actually
received. ● To ensure successful
○ Expenses are recorded implementation of the plan
when they are incurred
regardless of when the actual Feedforward Control (before the process)
payment is made. ★ Preventive controls that are
established before the start of the
Cash Accounting Method work activities
★ Recognizes financial transactions
only when there is cash actually paid Concurrent Controls (during the process)
or received by the company ★ Solve problems when they are
occuring
Marketing Control (CRM) ★ Established during the actual
★ Customer Relationship implementation of work activities
Management - a system supported by ★ MBWA, manager by working around,
special software that tracks is doing spot checking to see the
information on customer behavior, work performance of the employees
wants, and preferences while they are on duty
○ Focuses on the needs and
wants of consumers Feedback Control (after the process)
★ CRM offers a technological solution: ★ Solve problems after they occured
○ to enhance relationships with ★ Established after work is completed
customers ★ Allow people to evaluate the quality
○ facilitate doing business with of the product or service after it is
them completed or served to the customer
○ maintain the company’s ○ Examples are customer
competitive advantage satisfaction surveys,
through strategic marketing. feedback forms, and etc.
CRM involves the following features:
1. Gathering accurate and up-to-date
customer profiles.
2. Use of meaningful customer data for
better interaction with customers.
