Control Techniques - Ten Types Of Techniques Of Controlling
10 Types of Traditional Control Techniques
The 10 types of traditional techniques of controlling are discussed below :-
1. Direct Supervision too Observation
'Direct Supervision too Observation' is the oldest technique of controlling. The supervisor himself observes the employees too their work. This brings him inwards straight contact amongst the workers. So, many problems are solved during supervision. The supervisor gets commencement paw information, too he has amend agreement amongst the workers. This technique is most suitable for a small-sized business.
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2. Financial Statements
All concern organisations prepare Profit too Loss Account. It gives a summary of the income too expenses for a specified period. They also prepare Balance Sheet, which shows the fiscal seat of the organisation at the terminate of the specified period. Financial statements are used to command the organisation. The figures of the electrical flow yr tin hold upwardly compared amongst the previous year's figures. They tin also hold upwardly compared amongst the figures of other similar organisations.
Ratio analysis tin hold upwardly used to expose out too analyse the fiscal statements. Ratio analysis helps to sympathize the profitability, liquidity too solvency seat of the business.
3. Budgetary Control
A budget is a planning too controlling device. Budgetary command is a technique of managerial command through budgets. It is the essence of fiscal control. Budgetary command is done for all aspects of a concern such every bit income, expenditure, production, working capital missive of the alphabet too revenue. Budgetary command is done past times the budget committee.
4. Break Even Analysis
Break Even Analysis or Break Even Point is the betoken of no profit, no loss. For e.g. When an organisation sells 50K cars it volition pause even. It agency that, whatever sale below this betoken volition drive losses too whatever sale higher upwardly this betoken volition earn profits. The Break-even analysis acts every bit a command device. It helps to expose out the company's performance. So the fellowship tin accept collective activity to improve its performance inwards the future. Break-even analysis is a uncomplicated command tool.
5. Return on Investment (ROI)
Investment consists of fixed assets too working working capital missive of the alphabet used inwards business. Profit on the investment is a vantage for adventure taking. If the ROI is high too then the fiscal performance of a concern is goodness too vice-versa.
ROI is a tool to improve fiscal performance. It helps the concern to compare its introduce performance amongst that of previous years' performance. It helps to behave inter-firm comparisons. It also shows the areas where corrective actions are needed.
6. Management past times Objectives (MBO)
MBO facilitates planning too control. It must fulfill next requirements :-
- Objectives for individuals are jointly fixed past times the superior too the subordinate.
- Periodic evaluation too regular feedback to evaluate private performance.
- Achievement of objectives brings rewards to individuals.
7. Management Audit
Management Audit is an evaluation of the management every bit a whole. It critically examines the total management process, i.e. planning, organising, directing, too controlling. It finds out the efficiency of the management. To cheque the efficiency of the management, the company's plans, objectives, policies, procedures, personnel relations too systems of command are examined rattling carefully. Management auditing is conducted past times a squad of experts. They collect information from past times records, members of management, clients too employees. The information is analysed too conclusions are drawn nearly managerial performance too efficiency.
8. Management Information System (MIS)
In society to command the organisation properly the management needs accurate information. They ask information nearly the internal working of the organisation too also nearly the external environment. Information is collected continuously to seat problems too expose out solutions. MIS collects data, processes it too provides it to the managers. MIS may hold upwardly manual or computerised. With MIS, managers tin delegate authority to subordinates without losing control.
9. PERT too CPM Techniques
Programme Evaluation too Review Technique (PERT) too Critical Path Method (CPM) techniques were developed inwards USA inwards the belatedly 50's. Any programme consists of diverse activities too sub-activities. Successful completion of whatever activity depends upon doing the operate inwards a given sequence too inwards a given time.
CPM / PERT tin hold upwardly used to minimise the total fourth dimension or the total toll required to perform the total operations.
Importance is given to identifying the critical activities. Critical activities are those which own got to hold upwardly completed on fourth dimension otherwise the total projection volition hold upwardly delayed.
So, inwards these techniques, the chore is divided into diverse activities / sub-activities. From these activities, the critical activities are identified. More importance is given to completion of these critical activities. So, past times controlling the fourth dimension of the critical activities, the total fourth dimension too toll of the chore are minimised.
10. Self-Control
Self-Control agency self-directed control. Influenza A virus subtype H5N1 somebody is given liberty to laid his ain targets, evaluate his ain performance too accept corrective measures every bit too when required. Self-control is peculiarly required for occur degree managers because they produce non similar external control.
The subordinates must hold upwardly encouraged to role self-control because it is non goodness for the superior to command each too everything. However, self-control does non hateful no command past times the superiors. The superiors must command the of import activities of the subordinates.
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