What are the principles of business planning and control

The four basic elements in a control system: We select a specific characteristic because a correlation exists between it and how the system is performing. The characteristic can be the output of the system during any stage of processing or it may be a condition that is the result of the system. For example, it may be the heat energy produced by the furnace or the temperature in the room which has changed because of the heat generated by the furnace.

What are the principles of business planning and control

Principles of Management Control Management Control Principles The basic principles of management control can be grouped into three categories reflecting their purpose and nature, structure and process.

what are the principles of business planning and control

These principles of management control are given below. Principle of Assurance of Objective. The basic purpose of management control is the attainment of objectives does this by detecting failures, in plans.

Potential or actual, deviations from plans should be detected enough to permit effective corrective action. Principle of Efficiency of Controls. A management control system should detect and highlight the causes of deviations from plans with minimum possible costs and unwanted consequences.

what are the principles of business planning and control

The principle of efficiency is particularly important in control because techniques tend to become costly and burdensome. A manager may become so engrossed in control that he spends more than it is to detect a deviation.

Controls which seriously interfere with authority of subordinates or morale of those who execute plans, is inefficient.

Principle of Control Responsibility. The primary responsibility for the exercise of control lies with the manager charged with the execution of plans. His responsibly cannot be waived or rescinded without changing the organization structure. This simple principle clarifies the often misunderstood role of controllers and control units.

These, agencies act in a service or staff provide control information. But they cannot exercise control unless given the managerial authority and responsibility for the things controlled. Principle of Forward Looking.

Control, like planning should be forward looking. The principle is often disregarded largely because control has been depend up accounting and statistical data instead of upon forecasts and projections. Even though forecast are not accurate, they are better than historical records. Ideally, a control system should provide instantaneous feedback so that, deviations from desired performance is corrected as soon as they occur.

If this is not possible control should be based on forecasts, so as to foresee deviations in time.

Session Objectives

For example, cash forecasts help in maintaining the solvency of business by anticipating cash shortages and preventing them.

Principle of Direct Control. Most, controls used today are based on the fact that human being make mistakes. They are often used as indirect controls aimed at catching errors, often after the fact. Where ever is possible, direct controls aimed at preventing errors should be used.

Improving the quality of managers can minimize the need for indirect controls. High quality managers make very few mistakes and carry out all their functions to the best advantage.

Principle of Reflection of Plans. Controlling is the task of making sure that plans are carried out effectively. Therefore, control techniques must reflect the specific nature and structure of plans.

The main tasks of financial planning are:

For example, cost control, must be based on planned costs of a definite and specific type. Principle of Organizational Suitability. A management control system fit the manage authority area and it should reflect the organization structure.

When the management control system is tailored to the structure of the organizationit pin points the responsibility for action and facilitates correction of deviation from the plans. Similarly, the information to appraise performance against plans must be suitable to the position of the manager who is to, use it.

In other words, all figures and reports used for purposes of control must be in terms of the organization. Principe of Individuality of Controls.

3 Planning & Control : Principles of Management

Controls become effective when they are consistent with the position, operational responsibility, competence, and needs of the individual concerned. The scope and detail information required vary with the level and function of management. Similarly, different managers prefer different forms and units of reporting information.Describe and differentiate between planning, control, and decision-making functions.

Be able to explain how strategy, positioning, and budgets are important parts of the planning process. Understand the need for defining the core values of an organization.

principles and methods of planning and control. We also examine information technology (IT), in the form of ERP (enterprise Figure This chapter examines planning and control If planning and control is the process of reconciling demand with supply, then the nature of.

Project Scope and Activity -Planning - Planning, Estimation and Scheduling - Team Management. 60 mins. a program, but principles of project management apply to most projects. What business situation is being addressed?. Business planning is critical if you want your business to survive and thrive.

By being sure that your business planning adheres to these five business planning principles, you can ensure that your business planning moves your business ahead rather than just being an expensive waste of time.

Ethical Principles in Planning (As Adopted by the APA Board, May ) This statement is a guide to ethical conduct for all who participate in the process of planning as .

Ethical Principles in Planning (As Adopted by the APA Board, May ) This statement is a guide to ethical conduct for all who participate in the process of planning as .

Control (management) - Wikipedia