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

MeaningA budget is a statement which reflects future incomes ,expenditures & profits of the firm.

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Benefit of budgetingStandards 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

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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.

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

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