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harscalex97 \ul0\nosupersub\cf1\f2\fs35 www.Vidyarthiplus.com\tab \up0 \expndtw0
\charscalex97 \ul0\nosupersub\cf2\f3\fs35 2013\par\pard\ql \li5010\sb379\sl-621\
slmult0 \up0 \expndtw0\charscalex95 \ul0\nosupersub\cf4\f5\fs54 UNIT V \par\pard
\ql \li4608\sb0\sl-620\slmult0 \up0 \expndtw0\charscalex95 Controlling \par\pard
\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li1751\sb11\sl-264\slmult0 \up0 \exp
ndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs23 Definition \par\pard\qj \li2452
\ri2674\sb20\sl-260\slmult0\tx2803\tx2803 \up0 \expndtw-3\charscalex100 \ul0\nos
upersub\cf3\f4\fs23 -\tab \up0 \expndtw-3\charscalex100 as the process of analyz
ing actual operations and seeing that actual \line\tab \up0 \expndtw-3\charscale
x100 performance is guided towards expected performance. \par\pard\li2452\sb15\s
l-264\slmult0\fi0\tx2803 \up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw-2\cha
rscalex100 Comparing operating results with plans and taking corrective actin wh
en\par\pard\li2452\sb6\sl-264\slmult0\fi350 \up0 \expndtw-3\charscalex100 result
s deviate from plans\par\pard\ql \li2452\ri1655\sb0\sl-273\slmult0\tx2803\tx2803
\tx2803\tx2803 \up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw-2\charscalex100
Def. Koontz and O\u8217?Donnell \u8220? The managerial function of controlling
is the \line\tab \up0 \expndtw-2\charscalex100 measurement and correction of the
performance of activities of subordinates \line \tab \up0 \expndtw-2\charscalex
100 in order to make sure that enterprise objectives and the plans devised to at
tain \line \tab \up0 \expndtw-3\charscalex100 them are being accomplished. \par\
pard\ql \li1751\sb257\sl-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupers
ub\cf5\f6\fs23 Nature & Purpose of Control \par\pard\ql \li2102\sb1\sl-259\slmul
t0 \up0 \expndtw-4\charscalex100 \ul0\nosupersub\cf3\f4\fs23 1. Control is an e
ssential function of management \par\pard\ql \li2102\sb2\sl-259\slmult0 \up0 \ex
pndtw-3\charscalex100 2. Control is an ongoing process \par\pard\ql \li2102\sb1
7\sl-264\slmult0 \up0 \expndtw-3\charscalex100 3. Control is forward - working
because pas cannot be controlled \par\pard\ql \li2102\sb1\sl-259\slmult0 \up0 \e
xpndtw-3\charscalex100 4. Control involves measurement \par\pard\ql \li2102\sb1
7\sl-264\slmult0 \up0 \expndtw-3\charscalex100 5. The essence of control is act
ion \par\pard\ql \li2102\sb1\sl-259\slmult0 \up0 \expndtw-3\charscalex100 6. Co
ntrol is an integrated system \par\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\
ql\li1751\sb13\sl-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5\
f6\fs23 Elements of Control \par\pard\ql \li2102\sb1\sl-259\slmult0 \up0 \expndt
w0\charscalex100 \ul0\nosupersub\cf3\f4\fs23 1. Planning \par\pard\ql \li2102\s
b17\sl-264\slmult0 \up0 \expndtw-2\charscalex100 2. Information Feedback \par\p
ard\ql \li2102\sb1\sl-259\slmult0 \up0 \expndtw-3\charscalex100 3. Delegation o
f Authority \par\pard\ql \li2102\sb17\sl-264\slmult0 \up0 \expndtw-2\charscalex1
00 4. Remedial action \par\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li17
51\sb13\sl-264\slmult0 \up0 \expndtw-3\charscalex100 Control Process \par\pard\q

l \li2452\sb1\sl-259\slmult0 \up0 \expndtw-2\charscalex100 1. Fixation of Stand

ard \par\pard\ql \li2452\sb2\sl-259\slmult0 \up0 \expndtw-3\charscalex100 2. Me
asurement of Performance \par\pard\ql \li2452\sb17\sl-264\slmult0 \up0 \expndtw3\charscalex100 3. Comparing performance with standards \par\pard\ql \li2452\sb
1\sl-259\slmult0 \up0 \expndtw-3\charscalex100 4. Correction of Deviations \par
\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li1751\sb13\sl-264\slmult0 \up0
\expndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs23 Problems in the Control Pr
ocess \par\pard\ql \li3153\ri3180\sb20\sl-260\slmult0 \up0 \expndtw-1\charscalex
100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Magnitude
of Change \line \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-388
0?\ul0\nosupersub\cf3\f4\fs23 Time rate of Change \par\pard\qj \li3153\ri3521\
sb0\sl-280\slmult0 \up0 \expndtw-4\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u3880?\ul0\nosupersub\cf3\f4\fs23 Erroneous standard ( Mistakes in setting stan
dard) \up0 \expndtw-4\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nos
upersub\cf3\f4\fs23 Workers Resistance \par\pard\ql \li3153\sb1\sl-236\slmult0
\up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupers
ub\cf3\f4\fs23 Communication Problems \par\pard\ql \li1751\sb0\sl-264\slmult0
\par\pard\ql\li1751\sb17\sl-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosup
ersub\cf5\f6\fs23 Characteristic of an ideal Control system \par\pard\ql \li2803
\ri3990\sb20\sl-260\slmult0 \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf6\f7\
fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Suitable \line \up0 \expndtw0\charsca
lex102 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Flexibl
e \par\pard\ql \li5898\sb0\sl-264\slmult0 \par\pard\ql\li5898\sb93\sl-264\slmult
0 \up0 \expndtw-3\charscalex100 1
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ul0\nosupersub\cf3\f4\fs23 Economical\par\pard\ql \li2803\sb5\sl-264\slmult0 \
up0 \expndtw0\charscalex102 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\
cf3\f4\fs23 Simple\par\pard\ql \li2803\sb6\sl-264\slmult0 \up0 \expndtw0\chars
calex101 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Objec
tive\par\pard\ql \li2803\sb6\sl-264\slmult0 \up0 \expndtw0\charscalex102 \ul0\no
supersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Prompt\par\pard\ql \l

i2803\sb5\sl-264\slmult0 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf6\f7\fs2

3 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Forward looking\par\pard\ql \li2803\sb6\
sl-264\slmult0 \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf6\f7\fs23 \u-3880?
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\up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersu
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li1751\ri25\sb11\sl-266\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf
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456\sb0\sl-402\slmult0 \par\pard\ql \li5456\sb0\sl-402\slmult0 \par\pard\ql \li2
0\sb13\sl-402\slmult0 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf1\f2\fs35 ww
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64\slmult0\fi0\tx2803 \up0 \expndtw-3\charscalex100 4.\tab \up0 \expndtw-3\chars
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i0\tx9308 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf1\f2\fs35 www.Vidyarthip
lus.com\tab \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf2\f3\fs35 2013\par\par
d\li1751\sb0\sl-264\slmult0\par\pard\li1751\sb0\sl-264\slmult0\par\pard\li1751\s
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rscalex100 Transformation /\tab \up0 \expndtw-3\charscalex100 Output\par\pard\ql
\li5255\sb1\sl-248\slmult0 \up0 \expndtw-3\charscalex100 Conversion process \pa
r\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li1751\sb15\sl-264\slmult0 \up
0 \expndtw-3\charscalex100 Information \par\pard\ql \li1751\sb17\sl-264\slmult0
\up0 \expndtw-5\charscalex100 Technology \par\pard\ql \li1751\sb1\sl-259\slmult0
\up0 \expndtw-3\charscalex100 Raw Materials \par\pard\li1751\sb18\sl-264\slmult
0\fi0\tx5255\tx8760 \up0 \expndtw-3\charscalex100 Main Power\tab \up0 \expndtw-3
\charscalex100 Planning, operating &\tab \up0 \expndtw-3\charscalex100 Product\p
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0 Management\tab \up0 \expndtw-3\charscalex100 Controlling production\tab \up0 \
expndtw-3\charscalex100 Services\par\pard\li1751\sb4\sl-264\slmult0\fi0\tx5255 \
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lt0 \par\pard\ql\li1751\sb19\sl-264\slmult0 \up0 \expndtw-4\charscalex100 \ul0\n
osupersub\cf5\f6\fs23 Developing Excellent Managers - The key to preventive cont
rol \par\pard\ql \li3503\ri3023\sb243\sl-280\slmult0\tx4380 \up0 \expndtw-2\char
scalex100 \ul0\nosupersub\cf3\f4\fs23 a. Efforts required on the part of manage
rs themselves \line\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf6\f7\fs2
3 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Willingness to learn \par\pard\qj \li438
0\ri3475\sb0\sl-260\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf6\f7
\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Planning for Innovation & Inventions
\up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupers
ub\cf3\f4\fs23 Tailoring Information \par\pard\ql \li3503\sb14\sl-264\slmult0
\up0 \expndtw-2\charscalex100 b. Efforts required on the part of the Organisati
on \par\pard\qj \li4380\ri1880\sb0\sl-270\slmult0 \up0 \expndtw-4\charscalex100
\ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Acceleration o
f Managerial Development programmes \up0 \expndtw-4\charscalex100 \ul0\nosupersu
b\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Measuring Managerial program
mes and rewarding it \up0 \expndtw-4\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \
u-3880?\ul0\nosupersub\cf3\f4\fs23 Need for management R & D \par\pard\ql \li
4380\sb7\sl-264\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf6\f7\fs2
3 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Need for Intellectual Leadership \par\pa
rd\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li1751\sb0\sl-264\slmult0 \par\par
d\ql\li1751\sb9\sl-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5
\f6\fs23 Globalisation \par\pard\ql \li2803\sb0\sl-270\slmult0 \par\pard\ql\li28
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Globalisation means
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803\ri1860\sb0\sl-270\slmult0\tx3153\tx3153 \up0 \expndtw-1\charscalex100 \ul0\n

osupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 The integration take
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\line \tab \up0 \expndtw-3\charscalex100 economy. \par\pard\ql \li2803\ri1943\s
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pndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs23 Benefits of Globalisation \par
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Improves efficiency \par\pa
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f6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23 Improves factor Income \par\par
d\ql \li5898\sb0\sl-264\slmult0 \par\pard\ql\li5898\sb13\sl-264\slmult0 \up0 \ex
pndtw-3\charscalex100 4
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i0\tx9308 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf1\f2\fs35 www.Vidyarthip
lus.com\tab \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf2\f3\fs35 2013\par\par
d\ql \li2803\sb0\sl-264\slmult0 \par\pard\ql\li2803\sb109\sl-264\slmult0 \up0 \e
xpndtw-1\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f
4\fs23 Improves finance \par\pard\ql \li2803\sb17\sl-264\slmult0 \up0 \expndtw
-1\charscalex100 \ul0\nosupersub\cf6\f7\fs23 \u-3880?\ul0\nosupersub\cf3\f4\fs23
Gains from Migrations \par\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li
1751\sb13\sl-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs
23 Drawbacks of Globalisation \par\pard\ql \li2102\sb1\sl-259\slmult0 \up0 \expn
dtw-2\charscalex100 \ul0\nosupersub\cf3\f4\fs23 1. Globalisation increases the
problems of unemployment \par\pard\ql \li2102\sb2\sl-259\slmult0 \up0 \expndtw-2
\charscalex100 2. Domestic Industries finds difficulty in survival \par\pard\qj
\li1751\ri1830\sb21\sl-260\slmult0 \up0 \expndtw-2\charscalex100 Only group of
people who participate in the process of Globalisation will be benifitted, \up0
\expndtw-3\charscalex100 this creates income inequality within the country \par\
pard\ql \li2102\sb17\sl-264\slmult0 \up0 \expndtw-2\charscalex100 3. Control on
domestic economy becomes more difficult \par\pard\ql \li2102\sb1\sl-259\slmult0

\up0 \expndtw-2\charscalex100 4. Developing country suffers from the problem o

f brain-drain \par\pard\ql \li1751\sb0\sl-264\slmult0 \par\pard\ql\li1751\sb13\s
l-264\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs23 Internat
ional Business \par\pard\li2452\sb10\sl-264\slmult0\fi0\tx2803 \up0 \expndtw-3\c
harscalex100 \ul0\nosupersub\cf3\f4\fs23 -\tab \up0 \expndtw-3\charscalex100 Inv
olves commercial activities that cross national frontiers\par\pard\li2452\sb6\sl
-264\slmult0\fi0\tx2803 \up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw-2\char
scalex100 It is a process of Entrepreneur conducting business activities across
national\par\pard\li2452\sb5\sl-264\slmult0\fi350 \up0 \expndtw-3\charscalex100
boundaries\par\pard\li2452\sb6\sl-264\slmult0\fi0\tx2803 \up0 \expndtw-3\charsca
lex100 -\tab \up0 \expndtw-3\charscalex100 It consist of Exporting, Importing, l
Icensing, opening of Sales office\par\pard\li2452\sb6\sl-264\slmult0\fi0\tx2803
\up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw-2\charscalex100 The activities
necessary for ascertaining the need and want of target consumer\par\pard\qj \li
2803\ri1843\sb0\sl-270\slmult0 \up0 \expndtw-2\charscalex100 often takes place i
n more than one country. When an Entrepreneur executes \up0 \expndtw-2\charscale
x100 his or her business model in more than one country International Business \
line \up0 \expndtw-3\charscalex100 Occuring. \par\pard\ql \li1751\sb259\sl-264\s
lmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs23 Entry into Inte
rnational Business \par\pard\qj \li1751\ri1674\sb0\sl-280\slmult0\fi700 \up0 \ex
pndtw-2\charscalex100 \ul0\nosupersub\cf3\f4\fs23 The method of entering or enga
ging in International Business can be divided into \up0 \expndtw-3\charscalex100
three categories \par\pard\ql \li2452\sb1\sl-259\slmult0 \up0 \expndtw0\charsca
lex101 \ul0\nosupersub\cf5\f6\fs23 1. Exporting \par\pard\ql \li3153\ri3338\sb1
\sl-260\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf7\f8\fs23 o\ul0\
nosupersub\cf3\f4\fs23
Indirect Exporting \line \up0 \expndtw-1\charscalex100
\ul0\nosupersub\cf7\f8\fs23 o\ul0\nosupersub\cf3\f4\fs23
Direct Exporting \p
ar\pard\qj \li2452\ri2443\sb20\sl-260\slmult0\tx2803 \up0 \expndtw-2\charscalex1
00 2.\ul0\nosupersub\cf5\f6\fs23 Non Equity arrangement\ul0\nosupersub\cf3\f4\
fs23 - Doing international business through an \line\tab \up0 \expndtw-3\charsc
alex100 arrangement that does not involve any investments. \par\pard\li3153\sb17
\sl-264\slmult0\fi0\tx3503 \up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw-3\c
harscalex100 Licensing - allowing someone else to use something of the company\
u8217?s\par\pard\li3153\sb6\sl-264\slmult0\fi350 \up0 \expndtw-3\charscalex100 i
n return for the payment of royalty\par\pard\ql \li3153\ri1923\sb0\sl-273\slmult
0\tx3503\tx3503\tx3503\tx3503 \up0 \expndtw-3\charscalex100 -\tab \up0 \expndtw4\charscalex100 Turn key Projects - A foreign Entrepreneur build a factory or ot
her \line\tab \up0 \expndtw-3\charscalex100 facility, training the workers, trai
n the management and then turn it \line \tab \up0 \expndtw-3\charscalex100 over
to the local owners once the operation is completed, hence the \line \tab \up0 \
expndtw-3\charscalex100 name turn key operation \par\pard\ql \li3153\ri1842\sb0\
sl-266\slmult0\tx3503\tx3503\tx3503\tx3503 \up0 \expndtw-3\charscalex100 -\tab \
up0 \expndtw-4\charscalex100 Management Contracts - Contracting management techn
iques and \line\tab \up0 \expndtw-3\charscalex100 skills. The management contrac
ts allows the purchasing country to \line \tab \up0 \expndtw-3\charscalex100 gai
n foreign expertise without giving ownership of its resources to a \line \tab \u
p0 \expndtw-3\charscalex100 foreigner. \par\pard\ql \li2452\sb1\sl-250\slmult0 \
up0 \expndtw-3\charscalex100 3.\ul0\nosupersub\cf5\f6\fs23 Direct Foreign Inve
stments\ul0\nosupersub\cf3\f4\fs23 - preferred mode of ownership \par\pard\li31
53\sb14\sl-264\slmult0\fi0\tx3503 \up0 \expndtw-2\charscalex100 -\tab \up0 \expn
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par\pard\li3153\sb6\sl-264\slmult0\fi0\tx3503 \up0 \expndtw-2\charscalex100 -\ta
b \up0 \expndtw-2\charscalex100 Joint Ventures - Merger of two companies\par\par
d\ql \li5898\sb0\sl-264\slmult0 \par\pard\ql\li5898\sb0\sl-264\slmult0 \par\pard
\ql\li5898\sb0\sl-264\slmult0 \par\pard\ql\li5898\sb0\sl-264\slmult0 \par\pard\q
l\li5898\sb0\sl-264\slmult0 \par\pard\ql\li5898\sb13\sl-264\slmult0 \up0 \expndt
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