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Control
Final Unit
Definition
Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.
Characteristics of Control• Managerial Function
• Forward Looking
• Continuous Activity
• Control is related to Planning
• Essence of Control is action
Steps in Controlling process
There are four steps in the control process which are:
• Setting of Control standards
• Measurement of actual performance
• Comparing actual and Standard performance
• Taking Corrective action
Importance of Control• Basis for Future Action
• Facilitates decision making
• Facilitates decentralization
• Facilitates coordination
• Helps in improving efficiency
• Psychological pressure
Techniques in ControllingControl techniques are broadly classified into:
• Budgetary Techniques: Planned for specific periods in numerical terms. The budget provides an order while controlling.
• Non- Budgetary Techniques: These include statistical data, special reports & analysis, operational audit and observations
Types of Budget
• Capital Expenditure Budget
• Cash Budget
• Time, Space & Materials Budget
• Production Budget
• Sales Budget
• Zero-Based Budgeting
Other Techniques
• Operations Research Techniques: The application of scientific/mathematical methods or techniques and tools to the solution of operating business problems of business system.
• PERT: is employed to calculate the total time required to complete a project and also identify the possible problems that may arise towards delay of the project completion.