PRESENTATION ON TECHNIQUES OF CONTROL

Nabajyoti Borgohain Roll No- NU/MN-18/11

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

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 Technique

Traditional Control TechniqueModern Control

Technique

Statistical Report & Analysis

Personal Observation

Cost Control

Budgeting & Budgetay Control

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.

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.

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.

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.

CLASSIFICATION OF BUDGET

Budget can be classified in to 3 ways

1)The coverage they encompasses2)The capacity to which they relate3)The periods which they occur

COVERAGE CAPACITY

SHORT TERM

BUDGET

LONG TERM

BUDGET

FLEXIBLE BUDGET

FIXED BUDGET

MASTER BUDGET

FUNCTIONAL

BUDGET

PERIOD

BUDGET

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.

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.

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