Techniques of control

Traditional technique

INTRODUCTION
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To enable managers 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.
There are two types of techniques of
controlling.

Traditional techniques
Modern technique
What is traditional technique ?
These techniques of control are being
used by managers since long time &
there fore
Known as traditional techniques.

TRADITIONAL TECHNIQUES
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Personal observation
Budgeting
Break-even analysis
Financial statement
Statistical data & report
Quality control

PERSONAL OBSERVATION
This

is the most traditional method of control.

It helps managers to collect first hand
information.
It also creates a psychological pressure on
the employees to perform well as they are
aware that they are being observed
personally on their job.
How ever it is very time consuming , & not
suitable for all kinds of jobs.

BUDGETING

Meaning-

A budget is a statement which reflects future

incomes ,expenditures & profits of the firm.

Benefit of budgeting-

1.

Standards of performance
Planning
Predicting the future
Financial planning

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BREAK EVEN ANALYSIS

It

deals with the study of the relationship

between costs,volume, & profit.
It determines the probable profit and
losses at different levels of activity.
The sales volume at which there is no
profit,no loss is known as breakeven point.
It can be calculated as ,
Breakeven point=fixed cost/selling price
per unit variable cost per unit.

FINANCIAL STATEMENT

1.
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Financial statements shows financial position of

a firm over a period of time,generally one year.
These are prepared along with last year
statements, so that firm can compare its present
performance with last years performance &
improve its future performance.
It offers information on ,
Liquidity
Financial strength
profitability

STATISTICAL DATA & REPORT

Statistical

analysis in the form of

averages,percentages,ratios,..etc.
Data can be used for diagramatic
representations like histograms, pie chart,
bar graphs..etc.
A Report is a statement that represents

data in the form of information for carrying

out the controlling function.

QUALITY CONTROL

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Quality control uses operational techniques

and activities to sustain quality of the product
or service to satisfy customer needs
It is the traditional way to manage quality
There are three stages during the process
when inspection is performedWhen raw material is received.
When raw material goes through the
production process
When products are finished-testing takes place
before products are dispatched to customers.

Thank

you

Sauri prasad patra

MBA
Department of management studies

pondicherry central university