The document discusses various techniques of control in management. It describes traditional techniques like personal observation, statistical report and analysis, and cost control. It also discusses modern budgeting techniques like functional budgets, master budgets, fixed budgets, and flexible budgets. Budgets are further classified based on their coverage, capacity, and period. Personal observation, while effective, is time-consuming, and unscheduled visits may pressure employees. Statistical analysis and reports are useful for inventory, production, and quality control. Cost control helps achieve cost efficiency.

1. ON
TECHNIQUES OF
CONTROL
Nabajyoti Borgohain
Roll No- NU/MN-18/11

2. CONTENTS
1.About Techniques of Control
2.Types of Control Techniques
>Traditional Control Technique
>Modern Control Technique
3. Different Kind of Traditional Control Technique
4.Budget Classification

3. 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.

4. Control Technique
Traditional Control Technique Modern Control Technique
Personal Observation
Statistical Report & Analysis
Cost Control
Budgeting & Budgetay
Control

5. 1)PERSONAL
OBSERVATION
 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.

6. LIMITATION OF PERSONAL
OBSERVATION
 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.

7. 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.

8. 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.

9. BUDGET
1. Budget is the monetary and quantitative expression
of business plans and polices to be pursued in the
future period of time
2. The term budgeting is used for preparing budgets
and other procedure for planning,coordination and
control of business enterprise.

10. CLASSIFICATION OF
BUDGET
Budget can be classified in to 3
ways
1)The coverage they encompasses
2)The capacity to which they relate
3)The periods which they occur

11. BUDGET
COVERAGE CAPACITY PERIOD
FUNCTIO FLEXIBL LONG SHORT
MASTER FIXED
NAL E TERM TERM
BUDGET BUDGET
BUDGET BUDGET BUDGET BUDGET

12. FUNCTIONAL BUDGET:
A functional budget is one which relate to a function of the
business eg sales, production, selling, and distribution cost
budget, cost production budget, material budget, direct labour
budget etc
MASTER BUDGET :
The master budget is the summary budget incorporating its
component function budgets. It is nothing but a consolidated
departmental and functional budget.

13. FIXED BUDGET
Fixed budget is a budget designated to remain unchanged
irrespective of the level of activity actually attained. Fixed
budget are established only for short term periods when the
actual results are not anticipated to differ from the budget
estimates
FLEXIBLE BUDGET
A flexible budget is a budget which is designed to adjust
permitted cost level to suit the level of activity actually
attaind.

14. LONG TERM BUDGETS
These are budgets for longer periods, usually more then one
year . Capital budget is an example of long term budget
SHORT TERM BUDGETB
Budgets upto a period of one year are called short term
budgets. Most of the functional budgets are short period budget