Techniques of Controlling

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 Techniques of Controlling

1. Direct Supervision and Observation

  • Description: Supervisors directly monitor employees' work.
  • Benefits: Provides firsthand information, fosters better worker-supervisor relations, and is suitable for small businesses.

2. Financial Statements

  • Purpose: Analyze Profit and Loss Accounts and Balance Sheets.
  • Usage: Compare current year figures with past years using ratio analysis to assess financial performance.

3. Budgetary Control

  • Definition: Management control through budget setting and monitoring.
  • Process: Involves budget committees to oversee income, expenditure, production, and other aspects of business.

4. Break Even Analysis

  • Objective: Determine the point of no profit, no loss.
  • Utility: Helps in assessing performance and guiding future improvements.

5. Return on Investment (ROI)

  • Focus: Measures profitability of investments.
  • Application: Compares current performance with past years and benchmarks against industry standards.

6. Management by Objectives (MBO)

  • Approach: Jointly set objectives, periodic evaluations, rewards for goal achievement.
  • Benefits: Aligns individual goals with organizational objectives.

7. Management Audit

  • Purpose: Evaluate overall management efficiency.
  • Method: Assess planning, organizing, directing, and controlling processes.

8. Management Information System (MIS)

  • Role: Provides accurate internal and external information.
  • Tools: Collects, processes, and delivers data to aid managerial decision-making.

9. PERT and CPM Techniques

  • Techniques: PERT and CPM for project management.
  • Function: Schedule activities to ensure timely project completion.

10. Self-Control

  • Definition: Self-directed management control.
  • Usage: Encourages autonomy in setting goals, evaluating performance, and taking corrective actions.

Summary

These controlling techniques provide managers with diverse tools to monitor, evaluate, and improve organizational performance across financial, operational, and strategic domains. Each technique offers unique benefits tailored to specific management needs and organizational contexts.