10 Types of Traditional Control Techniques
The x types of traditional techniques of controlling are discussed below :-
1. Direct Supervision too Observation
'Direct Supervision too Observation' is the oldest technique of controlling. The supervisor himself observes the employees too their work. This brings him inwards straight contact amongst the workers. So, many problems are solved during supervision. The supervisor gets get-go mitt information, too he has meliorate agreement amongst the workers. This technique is most suitable for a small-sized blogspot.com//search?q=what-is-business-meaning-definitions">business.
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2. Financial Statements
All employment concern organisations prepare Profit too Loss Account. It gives a summary of the income too expenses for a specified period. They also prepare Balance Sheet, which shows the fiscal seat of the organisation at the destination of the specified period. Financial statements are used to command the organisation. The figures of the electrical flow twelvemonth tin endure compared amongst the previous year's figures. They tin also endure compared amongst the figures of other similar organisations.
Ratio analysis tin endure used to expose out too analyse the fiscal statements. Ratio analysis helps to sympathise the profitability, liquidity too solvency seat of the business.
3. Budgetary Control
A blogspot.com//search?q=what-is-business-meaning-definitions">budget is a planning too controlling device. Budgetary command is a technique of managerial command through budgets. It is the essence of fiscal control. Budgetary command is done for all aspects of a employment concern such every bit income, expenditure, production, uppercase too revenue. Budgetary command is done past times the budget committee.
4. Break Even Analysis
Break Even Analysis or Break Even Point is the indicate of no profit, no loss. For e.g. When an organisation sells 50K cars it volition intermission even. It agency that, whatever sale below this indicate volition effort losses too whatever sale higher upward this indicate volition earn profits. The Break-even analysis acts every bit a command device. It helps to expose out the company's performance. So the society tin accept collective activity to improve its performance inwards the future. Break-even analysis is a uncomplicated command tool.
5. Return on Investment (ROI)
Investment consists of fixed assets too working uppercase used inwards business. Profit on the investment is a vantage for run a jeopardy taking. If the ROI is high thence the fiscal performance of a employment concern is goodness too vice-versa.
ROI is a tool to improve fiscal performance. It helps the employment concern to compare its acquaint performance amongst that of previous years' performance. It helps to deport inter-firm comparisons. It also shows the areas where corrective actions are needed.
6. Management past times Objectives (MBO)
blogspot.com//search?q=what-is-business-meaning-definitions">MBO facilitates planning too control. It must fulfill next requirements :-
- Objectives for individuals are jointly fixed past times the superior too the subordinate.
- Periodic evaluation too regular feedback to evaluate private performance.
- Achievement of objectives brings rewards to individuals.
7. Management Audit
blogspot.com//search?q=what-is-business-meaning-definitions">Management Audit is an evaluation of the management every bit a whole. It critically examines the total management process, i.e. planning, organising, directing, too controlling. It finds out the efficiency of the management. To cheque the efficiency of the management, the company's plans, objectives, policies, procedures, personnel relations too systems of command are examined real carefully. Management auditing is conducted past times a squad of experts. They collect information from past times records, members of management, clients too employees. The information is analysed too conclusions are drawn well-nigh managerial performance too efficiency.
8. Management Information System (MIS)
In gild to command the organisation properly the management needs accurate information. They demand information well-nigh the internal working of the organisation too also well-nigh the external environment. Information is collected continuously to seat problems too expose out solutions. MIS collects data, processes it too provides it to the managers. MIS may endure manual or computerised. With MIS, managers tin blogspot.com//search?q=what-is-business-meaning-definitions">delegate authority to subordinates without losing control.
9. PERT too CPM Techniques
Programme Evaluation too Review Technique (PERT) too Critical Path Method (CPM) techniques were developed inwards USA inwards the belatedly 50's. Any programme consists of diverse activities too sub-activities. Successful completion of whatever activity depends upon doing the function inwards a given sequence too inwards a given time.
CPM / PERT tin endure used to minimise the total fourth dimension or the total toll required to perform the total operations.
Importance is given to identifying the critical activities. Critical activities are those which possess got to endure completed on fourth dimension otherwise the total projection volition endure delayed.
So, inwards these techniques, the task is divided into diverse activities / sub-activities. From these activities, the critical activities are identified. More importance is given to completion of these critical activities. So, past times controlling the fourth dimension of the critical activities, the total fourth dimension too toll of the task are minimised.
10. Self-Control
Self-Control agency self-directed control. H5N1 individual is given liberty to laid his ain targets, evaluate his ain performance too accept corrective measures every bit too when required. Self-control is specially required for move past times score managers because they produce non similar external control.
The subordinates must endure encouraged to role self-control because it is non goodness for the superior to command each too everything. However, self-control does non hateful no command past times the superiors. The superiors must command the of import activities of the subordinates.
