1. Role of control in the process of management of foreign economic activity
Features of control
-- Controlling is an end function. A function which comes once the performances are made in confirmities with plans.
-- Controlling is a pervasive function. It means it is performed by managers at all levels and in all type of concerns.
-- Controlling is forward looking. Effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
-- Controlling is a dynamic process. Since controlling requires taking renewal methods, changes have to be made wherever possible.
-- Controlling is related with planning. Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.
Stages of controlling
1) Establi shment of standards
2) Measurement of performance
3) Comparison of actual and standard performance
4) Taking remedial actions
Establishment of standards. Standards are the plans or the targets which have to be achieved in the course of business function. They can also be called as the criterions for judging the performance.
Measurement of performance. Finding out deviations becomes easy through measuring the actual performance.
Comparison of actual and standard performance.
Comparison of actual performance with the planned targets is very important. Deviation can be defined as the gap between actual performance and the planned targets.
Taking remedial actions. Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it.
2.Diagnostics as a function of management of foreign economic activity.
Diagnostics - is the identification of the nature and cause of anything.
1)Financial statement diagnostics - the analysis of the accounts and the economic prospects of a firm.
2)Fundamental diagnostics - a stock valuation method that uses financial instruments.
3)Technical diagnostics - the study of price action in securities markets in order to forecast future prices.
4)Business diagnostics - involves identifying the needs and determining the solutions to business problems.
5) Price diagnostics - involves the breakdown of a price to a unit figure.
6) Market diagnostics - consists of suppliers and customers, and price is determined by the interaction of supply and demand.
The basic steps of diagnostics
1.Specify the problem and define the objectives of diagnostics;
2. Identify all options for achieving those objectives;
3.Decide what level of diagnostics is worthwhile;
4.Estimate the costs of diagnostics;
5.Realize diagnostics.
3. The role of regulation in securing of qualified management of foreign economic activity
Regulation - a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals.
Features of regulation
-- Pervasive function. Regulation is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates.
-- Continuous activity. Regulation is a continuous activity as it continuous throughout the life of organization.
-- Human factor. Regulation is function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important.
-- Creative activity. Regulation function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless.
-- Executive function. Regulation function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only.
-- Delegate function. Regulation is supposed to be a • function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.