CONTROLLING

MANAGEMENT PROGRAMS

D4 1B MANAGERIAL ACCOUNTING
GROUP MEMBERS:

Ning Ayu Selma Karmini Putri 1915644044; 09; 2019

Komang Gusna Andre Hermawan 1915644062; 11; 2019
I Made Suarsa 1915644145; 22; 2019

Bali State Polytechnic

2019

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 TABLE OF CONTENTS

COVER PAGE .......................................................................... i

TABLE OF CONTENTS ......................................................... ii
CHAPTER I. INTRODUCTION ............................................. 1
1.1 Background ....................................................................... 1
1.2 Problem Formulation ........................................................ 1
1.3 Objectives ......................................................................... 2
1.4 Benefits ............................................................................. 2
CHAPTER II. DISCUSSION ................................................... 3
2.1 Definition of Controlling .................................................. 3
2.2 Objectives and Areas of Controlling ................................ 4
2.3 Controlling Function......................................................... 6
2.4 Controlling Principles ....................................................... 7
2.5 Types of Controlling......................................................... 7
2.6 Principles Of Controlling ................................................ 10
2.7 Nature and Time of Controlling ...................................... 11
2.8 Characteristics Of an Effective Controlling Systems ...... 12
2.9 Ways of Controlling ........................................................ 13
2.10 Controlling Tools........................................................... 13
2.11 Controlling Process........................................................ 15
CHAPTER III. CONCLUSION ............................................... 17
3.1 Conclusions .................................................................... 17
3.2 Suggestions ..................................................................... 17
REFERENCES……………………………………………… 18

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 CHAPTER I
INTRODUCTION

1.1 Background
Supervisor or controller can be compared to a ship navigator. The
ship's navigator who was trained helped the captain of the ship. Without a
navigator, the ship can be stuck on rocks or lose course, but the right to
give command remains in the captain of the ship. The navigator only gives
instructions and tells the captain what the ship's position is. So an
organization or business entity can also be likened to a ship, so the role of
the controller is very important in the progress of an organization or
business entity.
Control (Controlling) itself means the discovery, application of means
and tools to ensure that the plan has been carried out in accordance with
what has been set and achieve the expected goals. With the management of
controlling (controlling) is intended to oversee the activities of the
organization so that the implementation of these activities is in line with the
objectives set.
In short, it can be said that this function seeks to ensure the activities
of the organization move towards its goals. With the supervisory function,
it can be seen whether the implementation of activities is proceeding as it
should or an error or deviation occurs. If it is known, further action can be
taken. Then, efforts can be made to improve it and if something goes
wrong, repairs can be made.

1.2 Problem Formulation

1. What is meant by controlling ?
2. What are the objectives and functions of controlling ?
3. What are the principles, types and principles of controlling ?
4. What are the characteristics and timing of controlling ?
5. What are the effective characteristics and ways to conduct surveillance ?
6. What are the tools needed for controlling ?

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 7. What are the processes of controlling ?

1.3 Objectives
1. To determine the meaning of controlling.
2. to determine the purpose and function of controlling.
3. To know the principles - principles, types and principles - the principle
of controlling.
4. to determine the nature and timing of controlling.
5. To determine the characteristics of an effective and how to - how to
conduct surveillance.
6. To learn about tools - tools needed in controlling.
7. To know the processes of controlling.

1.4 Benefits
1. Know the meaning of controlling.
2. Know the purpose and function of controlling.
3. Know the principles, types and principles of controlling.
4. Know the nature and time of controlling.
5. Know the characteristics of effective and ways to conduct controlling.
6. Know tools needed in controlling.
7. Knowing the processes of controlling.

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 CHAPTER II
DISCUSSION

2.1 Definition of Controlling

Controlling is one of the management functions that must be carried out
by a controller (supervisor). Controlling is carried out to find and correct
any deviations from the results achieved compared to the work plan that
has been determined, at each stage of the activity it is necessary to
supervise. Because if a deviation occurs, it will be faster to make
corrections or improvements.
A controller must align the level of security of the resource with the
need for definite plans with the process of recording or controlling the
progress towards the main objectives and targets and methods of achieving
them so that a supervisor can see the deviation early. Therefore, controlling
is closely related to planning.
Controlling can be interpreted negatively, positively, and in a broad
sense. In a negative sense, controlling can be interpreted as an act of
finding fault then giving sanctions, and carrying out restrictions. In the
positive sense of controlling are actions so that the organization or
company runs in a direction, there are no mistakes, irregularities or leakage
in all fields. While in a broad sense, controlling is the controller activity to
conduct observations, research and assessments of the implementation of
all activities of an organization or company that is or has been running to
achieve the goals set. The definition of controlling according to some
economists, among others:
a. Earl P Strong, Controlling is the process of regulating various factors
within a company, so that it is in accordance with the provisions in
the plan.
b. Haroold Koontz, Controlling is the measurement and improvement of
the implementation of the work of subordinates, so that plans that
have been made to achieve company goals can be implemented.
c. CGR Terry, Controlling can be formulated as a process of
determining what must be achieved, namely, what standards are

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 being carried out namely implementation, assessing implementation
and if necessary making improvements, so that implementation is in
accordance with the plan that is in line with standards.
d. Schermerhorn, stated that controlling is a process in determining
performance measures and taking actions that can support the
achievement of expected results in accordance with the specified
performance.
e. Stoner, Freeman and Gilbert, stated that controlling is a process to
ensure that all activities are carried out in accordance with what has
been planned.
f. Mockler, fully outlines that, in essence, controlling does not only
function to assess whether something is working or not, but includes
corrective actions that may be needed as well as the determination
and adjustment of standards related to the achievement of objectives
over time.
Controlling and control have different interpretations, and so far there
has been an interpretation that considers both of these the same.
Tjitrosidojo also distinguishes the meaning of the terms controlling and
control. According to him: Controlling is a form of observation that is
generally carried out as a whole, by making comparisons between
constituents and those that should be carried out. While the term control is
breakfast from the term in English control.

2.2 Objectives and Areas of Controlling

Griffin explained that there are four objectives of controlling :
1. Environmental Adaptation, the intention is that the company can continue
to adapt to changes that occur in the corporate environment, both internal
and external environments. Thus the supervisory function is not only
carried out to ensure that the company's activities run as planned, but also
so that the activities carried out in accordance with environmental changes,
because it is very possible the company also changes the company's plans
due to various changes in the environment faced by the company.
2. Minimizing Failure, the intention is when the company conducts
production activities, for example the company hopes that failure is as

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 minimal as possible. Therefore the company needs to carry out a
supervisory function so that these failures can be minimized.
3. Minimizing Costs, the intention is when the company fails then there will
be waste that does not provide benefits for the company. So to minimize
costs is needed is controlling.
4. Anticipating Organizational Complexity, the intention is that companies
can anticipate various complex organizational activities. The complexity
starts from the management of the product, the workforce to various
procedures related to organizational management.
In accordance with the understanding of controlling in a broad sense, the
controlling aims:
1. Finding and eliminating bottlenecks that may arise,
2. Preventing and correcting errors that exist,
3. Carrying out corrections whether the results according to plan,
4. Obtaining efficiency and effectiveness,
5. Educating employees and reinforcing a sense of responsibility.
In reality controlling is not only done for workers in the company, but
covers almost all fields in the company. In brief, controlling can be carried
out in the fields of:
2.2.1 Production
In this field controlling begins when receiving an order from the buyer,
then making purchases of materials until the product is finished making.
This includes overseeing inventory and controlling the quality and quantity
of products.
2.2.2 Marketing The
Task of this section starts when the product is sent to the market or
consumers. Therefore controlling usually starts from here, but there are
times when a fairly large company has previously begun with research and
gathering information from the market.
2.2.3 Finance
This field must be handled quickly, precisely, and accurately. Less careful
processing and controlling will result in companies falling into financial
problems that aim to companies can reduce the costs used.
2.2.4 Personnel
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 This field is an important factor that will help determine the achievement
of an organization's goals so it needs to get serious attention. The task of
this field is to organize, foster, move, direct, and develop employees to be
able to complete their tasks effectively and efficiently to support the
achievement of corporate or organizational goals.
2.2.5 Administration (Office)
This field is the application of management functions in the field of
offices, namely planning, organizing, mobilizing, and controlling offices so
that company goals can be achieved and employees are satisfied.

2.3 Controlling Function

The controlling function is intended to oversee the activities of the
organization so that the implementation of these activities is in line with the
objectives set. Likewise with all the elements in it in order to support each
other and work together to achieve the goals set, In short, it can be said that
this function seeks to ensure the activities of the organization moves
towards its goals.
The supervisory function includes several actions, including:
1. Setting performance standards.
2. Measuring ongoing achievements and comparing them with
established standards.
3. Take action to improve performance that is not in accordance with
standards.
Controlling is a process to ensure that organizational and management
objectives are achieved. Management controlling is a systematic effort to
set implementation standards with planning objectives, compare real
activities with planning objectives, compare real activities with
predetermined standards, determine and measure deviations and take
corrective actions needed to ensure that all company resources are used to
ensuring that all company resources are used in the most effective and
efficient manner in achieving company goals.

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2.4 Principles Controlling
1. There is a plan.
2. The existence of giving instructions and authority to subordinates.
The plan is a must because it is a standard for assessing the work done by
subordinates. Likewise, the existence of instructions and authority given to
subordinates is the basis for knowing whether subordinates have performed
their duties properly.
Apart from the main principles above, the supervisory system must also
contain the following principles:
1. Can reflect the nature and needs of activities that must be supervised
2. Can immediately report deviations.
3. Flexible, not rigid.
4. Can reflect organizational patterns
5. Economical
6. Can be understood
7. Can guarantee the holding of corrective actions.
By carrying out the supervisory principles above, it is hoped that
controlling will be able to run well. Good controlling, among others,
characterized by the following matters:
1. Able to prevent the possibility of irregularities as early as possible, so that
the losses that may arise can be eliminated.
2. Controlling is not rigid, because the rigidity of controlling will cause a
feeling of discomfort for the supervised so that the initiative and
creativity is reduced.
3. Controlling must be able to educate, controlling in order to educate
subordinates to work better and reduce deviations.
4. Reality, economical and effective. Realistic means that the standards used
to measure the success of an activity should be a standard that is possible
to achieve in practice with certain conditions.

2.5 Types of Controlling

There are several types of controlling, seen from the various ways of
classification / differentiation. The general way to classify controlling is
based on:

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1. Time of controlling
2. Object of controlling
3. Subject of controlling
4. How to collect facts.
1. Based on Controlling Time
Based on controlling time, the controlling can be divided into:
a. Preventive Control: Controlling is carried out before the activity is
carried out with ato viewavoiding deviations.
b. Repressive Control: Controlling is carried out after a deviation / error
occurs in the implementation of the activity, with the intention to
avoid repetition of errors so that the planned target can be achieved.
c. Controlling is carried out in the middle of the deviation process.
d. Periodic controlling, namely controlling conducted periodically once
a month or once quarter or once a year.
e. Sudden controlling is controlling conducted suddenly.
2. Based on the Object of Controlling
Controlling based on the object of controlling can be divided into:
a. Production Control
Namely to determine the quality and quantity of production produced
in accordance with existing plans.
b. Financial Control
This controlling is aimed at matters relating to finance, regarding
income and expenses, company costs including budget controlling.
c. Controlling of Employees (Personal Control)
Controlling is carried out on things that have to do with employee
activities, whether employees work in accordance with orders, plans,
work procedures, employee attendance and others.
d. Time Control
Controlling is intended for the use of time, meaning whether the time
to do the work in accordance with or not according to plan.
e. Policy Control
This controlling is intended to find out and assess whether the
policies of the organization have been implemented in accordance
with the outlines.

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 f. Technical Controlling
Controlling is aimed at matters of a physical nature related to the
actions and technical implementation.
g. Sales Controlling
Controlling is intended to determine whether the production
produced is sold in accordance with the specified target.
h. Inventory Control
i. Maintenance Control
3. Based on the Subject of Controlling
Based on the subject of controlling, controlling can be carried out by:
a. Internal Control
Namely controlling by a superior of his subordinates. The scope of
internal control covers a wide range of matters both the implementation
of tasks, procedures, systems, results, attendance and others. Audit
Control, namely internal control over issues related to bookkeeping of
the company.
b. External Control
The controlling carried out by outsiders. Normal control (formal
controlling) is an external controlling carried out by government
agencies.Control Informal (informal controlling) is controlling carried
out by the public / consumers both directly and indirectly , for example
through newspapers, magazines and others.
4. Based on the Method of Collecting Facts
In conducting data surveillance is a very important thing. Based on the
method of obtaining the data, controlling can be divided into four
namely:
a. Personal Inspection
This way there will be direct contact between superiors and
subordinates, so that the difficulties in the field can be known directly
by the supervisor who supervises, as well as the data obtained
objectively. But sometimes the subordinates who are watched feel
awkward because they feel they are being watched closely.

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 b. Oral Report
This controlling is carried out by receiving an oral report, which is
usually done by interview. In this interview, it can happen that the
interviewees are afraid to express data objectively, there is a feeling of
reluctance, a sense of hesitation and so on.
c. Writen Report (Written Report)
With a written report, usually less able to describe events and
activities as a whole, but often in excess. Thus it is very difficult to
distinguish which is an opinion and which is reality.
d. Control by Exception
Namely special controlling, carried out when there are things that
raise suspicion, so this controlling is special. Generally it can reduce
costs and energy, but in this way the supervised subordinate feels that he
is being watched closely.

2.6 Principles of Controlling

Harold Kontz and Cyril O Donnel set the principle of controlling as
follows: The
1. Principle of assurance of objective. Controlling must be directed
towards the achievement of objectives, namely by making
improvements (corrections) to avoid deviations / deviations from
planning.
2. Principle of efficiency and control. Controlling is efficient if it can avoid
deviation from planning, so it does not cause other things unexpected.
3. Principle of control responsibility. Controlling can only be carried out if
the manager is fully responsible for the implementation of the plan.
4. Principle of future control. Effective controlling must be aimed at
preventing planned deviations that will occur both now and in the
future.
5. Principle of direct control. The most effective control technique is to get
a good quality manager. Controlling is carried out by managers on the
basis that humans often make mistakes. The most appropriate way for
implementation in accordance with planning is to ensure that officers
have good quality.

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 6. Principle of replection of plans. Controlling must be arranged properly,
so that it can reflect the character and arrangement of the plan.
7. Principle of organizational suitability. Controlling must be carried out
in accordance with the organizational structure. The manager and his
subordinates are the means to carry out the plan. Thus effective
controlling must be adjusted to the magnitude of the manager's
authority, so that it reflects the organizational structure.
8. Principle of individuality of control. Controlling and controlling
techniques must be in accordance with the needs of managers, control
techniques must be addressed to the needs of information for each
manager, the scope of information needed is different from one another,
depending on the level and tasks of managers.
9. Principle of standard. Effective and efficient control requires
appropriate standards, which are useful as benchmarks for
implementation and objectives to be achieved.
10. Principle of strategic point control. Effective and efficient controlling
requires attention to strategic factors in the company.
11. The exception principle. Efficiency in control requires attention to the
exception factor. This exception can occur under certain circumstances
when the situation changes or is not the same.
12. The Principle of flexibility of control. Controlling must be flexible to
avoid the failure of implementing the plan.
13. The Principle of review. The control system must be reviewed many
times, so that the system used is useful to achieve the goal.
14. Principle of action. Controlling can be done if there are measures to
correct deviations from the plan, organization, staffing and directing.
2.7 Nature and Time of Controlling
Nature and time of controlling / control are distinguished on:
2.7.1 Preventive Control
Controlling is carried out before the activity is carried out with a view to
avoiding irregularities. This can be done by using several methods, namely:
a. Making regulations relating to the procedures for an activity or
anorder.
b. Make work guidelines.

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 c. Establish sanctions - sanctions against error makers.
d. Determine the position, duties, authority and responsibilities.
e. Organizing all kinds of activities.
f. Determine the reporting and inspection coordination system.
2.7.2 Represive Control
Controlling is carried out after a deviation occurs in the implementation
of activities, so there is no repetition of errors, so that the target can be
achieved. This can be done in the following ways:
a. Comparing the results of activities with a predetermined plan.
b. Look for the causes of irregularities and find solutions.
c. Provide an assessment of the results of activities, including the activities
of the responsible parties.
d. Implement sanctions that have been determined against the mistakes
maker.
e. Reassess the procedures that have been determined.
f. Check the truth of the report made by the implementing officer.
2.7.3 Controlling carried out in the middle of the deviation process
occurs.
This controlling is carried out in the middle of a process of deviation that
occurs toavoid the failure of the implementation of the plan.
2.7.4 Regular
Controlling Periodic controlling is controlling carried out
periodicallymonth once aor once a quarter or once a year.
2.7.5 Sudden
Controlling Sudden controlling is controlling carried out suddenly without
prior notice.

2.8 Characteristics of an effective controlling system

1. Accurate ; every data must be accurate, if it does not result in the
organization not making the right decision to correct a deviation.
2. On time ; information is immediately collected, directed and evaluated if
appropriate action is taken in time for improvement.

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 3. Objective and Comprehensive ; information in the surveillance system
must be understood and considered objective by the individuals who use
it.
4. Focused on strategic controlling points ; the controlling system should be
centered on the areas that are most likely to deviate from the standard.
5. Economical ; the costs for implementing the system should be less than
the benefits derived from the system.
6. Flexible ; the system must be flexible so that organizations can easily act
to cope with unfavorable changes or take advantage of new opportunities.
7. Can be accepted by all members of the organization ; ideally if the
system can produce high performance among members of the
organization by evoking a feeling that they have autonomy, responsibility
and opportunity to achieve goals.
8. Can be organized with the organization's work flow. This is caused by:
a) Every step in the work process can affect the success or failure of the
entire operation.
b) Controlling information must reach the people who need it.

2.9 Ways How to Control

A manager must have various ways of conducting controlling. Ways of
controlling can be divided into:
1. Direct Controlling
Namely controlling carried out directly by a manager in person. He
checks the work being done to find out if the results are what they want.
2. Indrirect Controlling
Namely remote surveillance through reports provided bysubordinates.
This report can be in the form of words, numbers or statistics that contain
an overview of the progress achieved.
3. Controlling Based Exceptions
Namely controlling that is specific to extraordinary deviations from the
expected results or standards.

2.10 Tools Of Controlling

Several tools that can be used as a function ofcontrolling companyare:

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1. Budget
Budget is a summary of the results to be expected and the expenditure
provided to achieve these results. Budgetary controlling can be known or
monitored, i.e. whether the expected results of revenues or expenditures
are as desired or not. If it is not in accordance with the budget, both
revenue / expenditure and the results obtained, then the company is not
effective because there are irregularities and the company leadership must
immediately make improvements.
2. Non-Budget
a. Personal Observation
Namely direct controlling by the company's leadership of employees
who are working. If deviations occur, the leader can immediately make
corrections by reprimanding or giving instructions, so that at that time
the activity can be immediately corrected.
b. Reports
Reports are made by subordinate managers. Based on these reports,
it can be known and monitored the development and activities of the
past. But if there are irregularities can not be immediately known, so
repairs will be too late.
c. Financial Statement
Is a list of financial statements that usually consists of a balance
sheet and a list of Profit and Loss. From these two lists, it can be
known and monitored through the analysis of financial statements,
regarding the company's capital condition.
d. Statistics
Statistics is the process of collecting data, information, events that
have passed. Analyze the data and present it in certain forms. For
example: graphs, curves.
e. Break Event Point
Return Point, which is a point or condition when the number of
sales equals the total cost or in other words in a particular sale does
not make a profit or suffer a loss.
f. Internal Audit

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 An controlling carried out by superiors of subordinates covering
the fields of activities as a whole involving financial matters, whether
in accordance with established procedures and practices.
g. Personal Audit
An analysis of all factors relating to personnel administration.
Based on this analysis, and various recommendations, anycorrected
deviations from the desired standard are.

2.11 Controlling Process

At the top left sequential steps begin. Controlling consists of a process
formed by three types of steps that are universal, namely:
1. Measuring the results of work
2. Comparing the results of work with standards and ensure differences
(if there are differences).
3. Correcting unwanted deviations through corrective actions. With a
somewhat different way we can say that controlling consists of actions:
1. Looking for information about what is being carried out;
2. Comparing the results with the expectations that led to the
action;
3. Agreeing on results or rejecting the results in which cases need
to be added to the corrective actions.

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  The following figure shows the graphic controlling process

Measur the Determine

Beginning
Compare it
results of the the deviation
of Controlling
work

Within
Boundaries
Standard2

No Yes

No KNow Continue
Planning
Ok The work
Yes
process

No KNow Organiz-
Ok ing
Yes

No
KNow Direct-
Yes Ok ing

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 CHAPTER III
CLOSING

3.1 Conclusion
Controling is one of the management functions that must be carried out
by a controller (supervisor). Controlling aims to find bottlenecks, prevent
irregularities, make corrections, obtain efficiency and effectiveness, and
strengthen a sense of responsibility and can be done in the fields of
production, marketing, finance, personnel, and administration. It can be
said that good controlling if controlling supports the nature or needs of
activities, must immediately report any deviations, must be oriented far
ahead, must be accurate and objective, must be flexible, must be in
harmony with organizational patterns. The controlling function is intended
to oversee the activities of the organization so that the implementation of
these activities is in line with the stated objectives. Controlling is an
important aspect of management because if there is a change in the
organizational environment, if the organization is increasingly complex, if
errors arise in the work, management will be able to face all these
challenges and the manager's need to delegate his authority.

3.2 Suggestion
Controlling is felt to be very necessary in an organization. Because if
there is no controlling in an organization it will lead to many mistakes that
occur both from subordinates and the environment. Controlling is needed
because it can build a good communication between organizational leaders
and members -organization member. And controlling can also lead to
appropriate corrective actions in formulating a problem. Controlling is
better done directly by the leader of the organization. Due to the need for
assertiveness rights and authority of a leader in an organization.
Controlling is recommended to be done routinely because it can change an
organizational environment from good to better.

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• Irham, Fahmi.2011. Management Theory, Cases and Solutions.

Bandung: Alfabeta.
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http://tugaskuliahku09.blogspot.com/2014/02/makalah-
controlling-dalam-management.html.
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Controlling Management. Quoted 7 Oktobe 2019 from
http://thohamuhammad.blogspot.com/2014/09/makalah-
management-controlling.html.
• Berlira (2018, 19 November).Controlling Paper Introduction
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http://berliansavira.blogspot.com/2018/11/makalah-controlling-
pengantar-management.html.

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