ON TECHNIQUES OFCONTROL Nabajyoti Borgohain Roll No- NU/MN-18/11
CONTENTS1.About Techniques of Control2.Types of Control Techniques >Traditional Control Technique >Modern Control Technique3. Different Kind of Traditional Control Technique4.Budget Classification
WHAT IS CONTROL Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner. According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action.
Control TechniqueTraditional Control Technique Modern Control Technique Personal Observation Statistical Report & Analysis Cost Control Budgeting & Budgetay Control
1)PERSONALOBSERVATION Observation of actual operation at work place is the most effective and oldest method of control. Under this technique the manager or supervisor ensure that each employee performs his work as per the given standard or norms by on the spot overseeing and observation.
LIMITATION OF PERSONALOBSERVATION Personal observation is a time consuming process Unscheduled visit of the manager at work sight may also put psychological pressure on the employees to comply with prescribed norms.
2)STATISTICAL REPORT AND ANALYSIS This analysis possible by means of comparison of rations,percentages,average,trends of different period with a view to pinpont deviation and causes. This method of control is very useful in case of inventory control,production control and quality control. Statistical charts are prepared with the help of collected data and permissible limits are plotted. A look at the chart will give an idea to the viewer of every thngs going as per plans or not.
3)COST CONTROL Cost control helps to control of all cost of an enterprise in order to achieve the cost efficiency of business. Cost can be classifies as fixed cost , variable cost, semi variable cost. There are the different methods of recording cost, recording cost for verious products, in each method classification, recording and allocation of expenses may be done differently.
BUDGET1. Budget is the monetary and quantitative expression of business plans and polices to be pursued in the future period of time2. The term budgeting is used for preparing budgets and other procedure for planning,coordination and control of business enterprise.
CLASSIFICATION OFBUDGETBudget can be classified in to 3 ways1)The coverage they encompasses2)The capacity to which they relate3)The periods which they occur
BUDGET COVERAGE CAPACITY PERIODFUNCTIO FLEXIBL LONG SHORT MASTER FIXED NAL E TERM TERM BUDGET BUDGETBUDGET BUDGET BUDGET BUDGET
FUNCTIONAL BUDGET: A functional budget is one which relate to a function of thebusiness eg sales, production, selling, and distribution costbudget, cost production budget, material budget, direct labourbudget etcMASTER BUDGET : The master budget is the summary budget incorporating itscomponent function budgets. It is nothing but a consolidateddepartmental and functional budget.
FIXED BUDGET Fixed budget is a budget designated to remain unchangedirrespective of the level of activity actually attained. Fixedbudget are established only for short term periods when theactual results are not anticipated to differ from the budgetestimatesFLEXIBLE BUDGET A flexible budget is a budget which is designed to adjustpermitted cost level to suit the level of activity actuallyattaind.
LONG TERM BUDGETS These are budgets for longer periods, usually more then oneyear . Capital budget is an example of long term budgetSHORT TERM BUDGETB Budgets upto a period of one year are called short termbudgets. Most of the functional budgets are short period budget