GANDHINAGAR INSTITUTE OF TECNOLOGY

PAWAR PARTH J.

BUTANI PARTH D.

SURANI KISHAN J.

Prepared By :-

Sub :- Engineering Economics & Management Topic :- Directing & Controlling. Guided By :- Prof. Prashant R Pandya Branch :-Electrical (B3) Academic Year :-2015-16

DIRECTING

DIRECTINGDIRECTING  MEANS GIVING INSTRUCTIONS, GUIDING, COUNSELLING, MOTIVATING AND LEADING THE STAFF IN AN ORGANISATION IN DOING WORK TO ACHIEVE ORGANISATIONAL GOALS.THE MANAGERIAL FUNCTION OF DIRECTING IS LIKE THE ACTIVITIES OF A TEACHER IN A CLASSROOM. IN ORDER TO TEACH, A TEACHER HAS TO GUIDE HIS STUDENTS, MAINTAIN DISCIPLINE, INSPIRE THEM AND LEAD THEM TO THE DESIRED GOALIN ENTERPRISE. IT HELPS THE MANAGERS IN ENSURING QUALITY PERFORMANCE OF JOBS BY THE EMPLOYEES AND ACHIEVEMENT OF ORGANISATIONAL GOALS. IT INVOLVES SUPERVISION,COMMUNICATION AND PROVIDING LEADERSHIP TO THE SUBORDINATES AND MOTIVATING THEM TO CONTRIBUTE TO THEIR BEST OF CAPABILITY.

MEANING OF DIRECTING

• telling people what is to be done and explaining to them how to do it;

• issuing instructions and orders to subordinates to carryout their assignments as scheduled;

• supervising their activities; • inspiring them to meet the mangers expectation and contribute towards the achievement of organisational objectives; and

• providing leadership.

IMPORTANCE OF DIRECTING • It guides and helps the subordinates to complete the given task properly and as per schedule.

• It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do them best.

• It helps in maintaining discipline and rewarding those who do well.

• Directing involves supervision, which is essential to make sure that work is performed according to the orders and instructions.

• Different people perform different activities in the organisation. All the activities are interrelated. In order to co-ordinate the activities carried out in different parts and to ensure that they are performed well, directing is important. It thus, helps to integrate the various activities and so also the individual goals with organisational goals.• Directing involves leadership that essentially helps in creating appropriate work environment and build up team spirit.

IMPORTANCE OF DIRECTING

CONTROLLING

Controlling Meaning – Controlling is a end function of management .

In brief controlling is a process of monitoring actual performance and taking corrective measure if required .

It is a process of checking to determine whether or not plans are being properly implemented and objectives are achieved .

Steps in Controlling process.

Setting Targets ComparisonMeasurementImplementation

Deviation Follow-upsImplementingMeasure

Control Measures

Steps in Controlling process.1. Setting targets

2. Implementation of targets

3. Measurement

4. Comparison

5. Deviation

6. Corrective Measures

7. Implementing Measures

8. Follow-Ups

Control Techniques 1.Budgetary control : Budgets are statement of anticipated results either in monetary or non- monetary terms.

There are various types of budgets such as :-Cash Budget , Production budget ,Capital expenditure budget , etc.

2.Management Audit :

Management audit refers to systematic evaluation of the functioning and performance of management .

It reviews the quality of management.

Control Techniques 3.PERT and CPM :

They are based on same principles , the only difference is that CPM is based on a single estimate of time requires for the completion of activities.

While the PERT is based on completion time computed from – Optimistic, Pessimistic & Most likely time.

4.MBO :

In MBO superiors and sub-ordinates jointly decides the Goals , plan out the activities.

The sub-ordinate managers implement the plan and finally there is a joint review of performance

Control Techniques 5.Direct Supervision :

In every organization supervisors directly supervise and observe the sub-ordinates the performance ,if they found any deviation they can suggest immediate corrective actions.

6.Self Control :

This is specially applicable at higher level.

Here the managers set their own targets , observe the performance , find out the deviations and take necessary actions to improve the performance.

Control Techniques 7.Break Even Analysis :

It indicates at what cost and volume a firm would make a profit .

It helps to decide break even point .

The break even point is that point where cost is exactly same as revenue i.e. no profit no loss point .

8.MIS :

In MIS information is collected from internal and external environment .

Analysis is done and date is stored for future reference .

Managers can use this information whenever required.

Merits of an effective Control System.

1. Guide to operations .

2. Facilitates performance appraisal.

3. Improves Morale.

4. Facilitates Coordination.

5. Facilitates optimum utilization of resources.

6. Minimization of wastages.

7. Fixes responsibility.

8. Higher Efficiency.

9. Direction for Employee.

10. Corporate Image.

Demerits of an effective Control System.

1. No control on external factors:

An enterprise cannot control the external factors such as government policy, technological changes, change in fashion, change in competitor’s policy, etc.

2. Resistance from employees:

Employees often resist control and as a result effectiveness of control reduces. Employees feel control reduces or curtails their freedom. Employees may resist and go against the use of cameras, to observe them minutely.

3. Costly affair:

Control is an expensive process it involves lot of time and effort as sufficient attention has to be paid to observe the performance of the employees. To install an expensive control system organizations have to spend large amount. Management must compare the benefits of controlling system with the cost involved in installing them. The benefits must be more than the cost involved then only controlling will be effective otherwise it will lead to inefficiency.