K12CURRICULUM Feedforward.Concurrent.Feedback Control.Budgetting. Effective Control Systems. The Importance of control. Areas of control. Elements in an internal Control. Financial Budget; Oraganizational Functions. Reported by... Grade11 students Majoycvbhdgkjehf bvnfdyKINDNESS2K16

1. The Control System:
Three Components or Types:
1.Feedforward Control
2.Concurrent Control
3.Feedback Control

2. Three Types of Control
Feedforward
Control
Anticipates
Problem
Input
Process
Output
Concurrent
Control
Corrects
problem as it
happens
Feedback
Control
Corrects
problem after
it occurred

3. Qualities of Effective Control Systems
Effective control systems are generally
linked to strategy, accepted by the
members, ACCURATE, FLEXIBLE, TIMELY,
EQUIPPED to point out exceptions, within
REASONABLE COSTS, and able to PROVIDE
CORRECTIVE MEASURES

4. The Importance of Control
Ensure that activities are according to
plans
Ensure that goals are attained,
Assist the managers and supervisors in
the delegation of authority, as controls
often motivate managers to dispense
authority.

5. Areas of Control
INFORMATION
CONTROL
SYSTEM
FINANCE
EMPLOYEE
BEHAVIOR
OPERATIONS

6. How does a manager exercise
effective control over the
organization?

7. CONTROL METHODS AND SYSTEMS
 Bureaucratic Control
1. Rules and regulations
- Standard operating procedures (SOPs)
- Policies that prescribe correct employee behavior
2. Management control systems
- Budgeting
- Financial Report
- Reward System
- Operations management
- Management by objective

8. 3.Hierarchy of authority
- Central authority
- Supervision
4.Total Quality Control (TQC)
5.Formalized selection and training
6.Information technology

9.  Market, Clan (Internal Control)
- includes all the policies and procedures
adopted by the management of an enterprise to
assist in achieving management objectives.
a) Orderly and efficient conduct of its business, including adherence to
management policies.
b) Safeguard of assets
c) Prevention and detection of fraud and error
d) Accuracy and completeness of the accounting records
e) Timely preparation of reliable financial information

10. Elements in an Internal Control
 Accounting System or the series of tasks and records of an entity by which
transactions are processed as a means of maintaining financial records
 Control Environment - or the overall attitude, awareness, and actions of the
BOD and management regarding internal control systems and its importance
to the enterprise
 Control procedures – or the policies and procedures in addition to the control
environment, which management has established to achieve the specific
objectives of the enterprise.

11. Budget as a Control Method or Device
Budget – is a statement of expected results in numerical terms. It can be
financial or non-financial. Are financial plans that comes into and outside the
organization.
Financial Budgets – pertain to revenues, costs, and capital
Non-financial budgets- pertain to direct labor hours, materials, sales volume or
units of production

12. Preparation of Financial Budgets
 Top Managers – prepare and use budgets for the
organization as a whole
 Middle Managers – focus on budgets for a
department or division
 Owner Manager – prepares the budgets in small
enterprises and uses them to monitor
performance

13. Kinds of Financial Budgets
 Revenue Budget – sets revenue targets and lists them
against accrual revenues
 Cash Budget – estimates receipts and expenditures of
money on a daily basis to ensure an adequate supply of
cash for operations.
 Expense Budget – incorporates anticipated and actual
expenses
 Capital Budget – is a list of planned investment in major
assets.

14. Control Across Organizational Functions
 Financial Ratios – are financial measures of performance culled from
accounting records, as summarized by financial statements
 Profit Ratios – managers are able to determine how efficient they are in
converting resources to profits
 Liquidity Ratios – indicate how well managers protect resources to meet short
term obligations
 Leverage Ratios - are indicative of how much debt is used to finance
operations
 Activity Ratios – reflect efficiency with which managers create value from the
use of assets

15. The Balance Scorecard
FINANCIAL CUSTOMER INTERNAL
ORGANIZATIONAL
LEARNING
Improve gross
profit margin
Develop Customer
partnerships based
on trust,
professionalism and
shared values
Increase
effectiveness of
sales force
Build skills and
offer portfolio for
creative solutions
Reduce
manufacturing and
purchase costs
Become preferred
supplier
Improve delivery
performance
Create customer
and project-
focused teams
Pursue economic
value-added
opportunities
Outperform other
suppliers
Improve
responsiveness to
opportunities
Build capability to
differentiate on
service provision
Improve
responsiveness and
reliability in supply
of products and
services
Build technological
capabilities

16. Task:
Instructions: Complete the following Balance
Scorecard as a manager on your “Proposed Business”
FINANCIAL CUSTOMER INTERNAL ORGANIZATIONAL
LEARNING
Improve__ Develop partnerships with---
---based on
Trust, professionalism and
shared values
Increase personal
effectiveness on-----
Build----skills through---
Reduce expenses on----
--
Become a preferred learner
of-----
Improve delivery
performance on:
Create customer and
project-focused teams with-
----
Pursue economic
Value-added
opportunities, such
As------
Outperform other learners
in--------
Improve responsiveness to
opportunities
Through-------
Build capability to
differentiate on----
Improve responsiveness and
Reliability in supply of------
Build technological
capabilities on-----