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.