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Mindmap

CONTROLLING TECHNIQUES

David Murcia Spanisch

Inhalt der Mindmap

CONTROLLING TECHNIQUES

  1. TYPES OF CONTROL

    • There are three main types: preventive (before actions occur), concurrent (during actions), and corrective (after actions), each addressing performance at different stages of operations.
      • Corrective Control: After the activity has been completed.
        • Post-action reviews.
        • Root cause analysis.
      • Concurrent Control: During the execution of the activity.
        • On-the-spot corrections.
        • Real-time monitoring systems.
      • Preventive Control: Before the activity occurs.
        • Risk assessments.
        • Training and development programs.
  2. STEPS IN THE CONTROL PROCESS

    • The control process involves setting standards, measuring actual performance, comparing it to the standards, and taking corrective action to address any discrepancies.
      • Measurement of actual performance.
        • Use reports, surveys, and observations.
        • Regular performance appraisals.
      • Comparison with standards.
        • Gap analysis.
        • Trend identification.
      • Corrective action.
        • Adjust processes or targets.
        • Provide additional resources or training.
      • Establishment of standards.
        • Define quantitative and qualitative benchmarks.
        • Set performance indicators (KPIs).
  3. OBJECTIVES OF CONTROL

    • The purpose of control is to verify if performance meets expectations, detect deviations, correct mistakes, and improve operational efficiency across all levels of the organization.
      • Identify deviations.
        • Recognize early signs of underperformance.
      • Verify performance.
        • Confirm output meets quality standards.
      • Correct errors.
        • Eliminate inefficiencies promptly.
      • Improve organizational efficiency.
        • Streamline operations.
        • Foster a culture of accountability.
  4. CONTROL IN MANAGEMENT

    • Control is vital in management as it ensures that activities are aligned with the organization's objectives. It allows managers to monitor performance and make necessary adjustments to stay on course.
      • Ensures that actual results align with established plans.
        • Regular strategic reviews.
        • Budgetary control mechanisms.
      • It is an essential function of the administrative process.
        • Integrates planning, organizing, and leading.
  5. TRADITIONAL CONTROL TECHNIQUES

    • Classic methods like budgets, audits, and reports provide structured tools for financial oversight and performance tracking, forming the foundation of many control systems.
      • Statistical Reports
        • Variance analysis.
        • Forecasting reports.
      • Financial audit.
        • Internal audits.
        • External audits.
      • Direct supervision.
        • Immediate task management.
        • Behavioral observations.
      • Budgets.
        • Operational budgets.
        • Capital budgets.
  6. MODERN CONTROL TECHNIQUES

    • Contemporary approaches such as TQM, Six Sigma, and benchmarking focus on continuous improvement, customer satisfaction, and strategic alignment with organizational goals.
      • Total Quality Management (TQM).
        • Continuous improvement (Kaizen).
        • Customer-focused approach.
      • Six Sigma.
        • DMAIC methodology (Define, Measure, Analyze, Improve, Control).
        • Reduce process variation.
      • Benchmarking.
        • Competitive benchmarking.
        • Best practices benchmarking.
      • Management by exception.
        • Focus only on significant deviations.
        • Prioritize critical control points.
  7. CHARACTERISTICS OF A GOOD CONTROL SYSTEM

    • An effective control system should be accurate, adaptable, timely, and cost-effective, allowing managers to respond quickly and make informed decisions.
      • Flexibility
        • Ability to adapt to market changes.
      • Cost-effectiveness.
        • Minimize monitoring expenses.
      • Accuracy
        • Reliable data sources.
      • Speed of response.
        • Rapid decision-making capacity.
  8. LIMITATIONS OF CONTROL

    • Despite its benefits, control has limits: it cannot eliminate all errors, involves financial costs, and may cause resistance among employees if perceived as overly rigid.
      • Cannot completely eliminate errors.
        • Human error.
        • External uncontrollable factors.
      • May generate resistance to change.
        • Fear of evaluation.
        • Comfort with the status quo.
      • Involves costs.
        • Personnel, technology, and training expenses.

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Beschreibung
Mindmap am CONTROLLING TECHNIQUES, erstellt von David Murcia am 28/04/2025.
Erstellt von
David Murcia · Apr 2025
Aktualisiert
28 Apr 2025
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