Techniques of controlling

Techniques of controllingBY- RITU MAKKARWHAT IS CONTROLLINGA process of monitoring performance and taking action to ensure desired results.It seeks to it that the right things happen, in the right ways, and at right time.introductionTo enable managers to effectively control the organizational activities, a large number of controlling techniques are available.A manager should know these techniques and in which situation it should be applied

Types of techniques of controlTraditional techniques of controlCont..Personal observationMost traditional methodFirst hand informationObserve operations at workplaceOn the spot correctionFace to face interaction

Personal observation cont..budgetingStatement which reflects future incomes, expenditures and profits of the firm.

Purpose of budgetingMeasuring and comparingCoordination Provides guidelinesEnhances the performance

Budgeting contBenefits of budgetingProvides standard of performanceFacilitates controlMotivational and job satisfactionOptimum use of scare resourcesLimitations of budgetingInflexibilityOverspendingHinderance to innovation and changeOver emphasis on budgeted goal

Break even analysisIt defines the relationship between sales volume costs and profit to findout sales at which sales revenue is equal to cost.The point at which sales revenue is equal to total cost is breakeven point.

Breakeven analysis

Breakeven analysis

Statistical reportsStatistical analysis in the form of averages, percentages and ratiosetcData can be used for diagramatic representations like histograms, pie charts, bar graphs.A report is a statement that represents data in the form of information for carrying out controlling function.

Financial statementsFinancial statements shows financial position of a firm over a period of time, generally one year.These are prepared along with the last year statements for comparision.It offers information on:LiquidityFinancial strengthprofitability

Quality controlQuality control uses operational techniques and activities to sustain quality of the product or service to satisfy customer needIt is the traditional way to manage quality.It is to be inspected at three levels:Raw material is recevied.During processFinal products

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