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PRESENTATION ON CONTROL TECHNIQUE AND

PERFORMANCE

Submitted by:
Rakesh kumar
(MBA 1st semester)

Submitted to:
Mrs. Reena sidana
HOD MBA

INTRODUCTION
1. To enable managers effectively control the

organizational activities, a large number of


controlling techniques are available.
2. A manager should know these techniques
and in which situation it should be applied.
3. There are two types of techniques of
controlling.

TWO TECHNIQUES
Traditional techniques
Modern techniques

TRADITIONAL TECHNIQUES
Personal observation
Budgeting
Break-even analysis
Financial statement
Statistical data &
report
6. Setting examples
7. Standard costing
8. Written instructions
1.
2.
3.
4.
5.

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
2. Planning
3. Predicting the future
4. Financial planning

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
Financial statements shows financial position of

1.
2.
3.

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.

SETTING EXAMPLES
It is old saying that example is better than

precepts
Some managers follow this and put good
examples of performance before subordinates
and expect the same from them.
Behaviour and actions of subordinates can be
controlled through exemplary behaviour of the
manager.

STANDARD COSTING
It is a technique of cost control.
Under this technique ,standard costs of

materail,labour,overheads etc. are


determined.
Actual cost are recorded and compared with
the standard costs and variances are found
out.
Then measures are taken to prevent
variances in future.

WRITTEN INSTRUCTIONS
These instructions are issued time to time to

the organization members.


These provide latest information and
instructions in the light of changing rules and
conditions.
These are supplementary control technique.

MODERN TECHNIQUES
1.
2.
3.
4.

Return on investment.
Management audit.
Management information system (MIS).
PERT/CPM.

RETURN ON INVESTMENT
Investment consists of fixed asset

andworkingcapital used in business.


Profit on the investment is a reward for risk
taking.
If the ROI is high then the financial
performance of a business is good and viceversa.
It also shows the areas where corrective
actions are needed.

MANAGEMENT AUDIT
Management Audit is an evaluation of the

management as a whole. It critically examines


the fullmanagement process.
It finds out the efficiency of the management.
Management auditingis conducted by a team
of experts.
The data is analyzed and conclusions are
drawn about managerial performance and
efficiency.

MANAGEMENT INFORMATION
SYSTEM
In order to control the organisation properly

the management needs accurate information.


Information is collected continuously to
identify problems and find out solutions.
They need information about the
internalworkingof the organisation and also
about the external environment.
MIS collects data, processes it and provides it
to the managers.

PERT/CPM
Programme Evaluation and Review Technique

(PERT) and Critical Path Method (CPM)


techniques were developed in USA in the late
50's.
Any programme consists of various activities
and sub-activities.
Importance is given to identifying the critical
activities.
by controlling the time of the critical activities,
the total time and cost of thejobare minimized.

THANKS