10 Types of Traditional Control Techniques
The 10 types of traditional techniques of controlling are discussed below :-
1. Direct Supervision together with Observation
'Direct Supervision together with Observation' is the oldest technique of controlling. The supervisor himself observes the employees together with their work. This brings him inward straight contact alongside the workers. So, many problems are solved during supervision. The supervisor gets start mitt information, together with he has amend agreement alongside 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 work organisation organisations prepare Profit together with Loss Account. It gives a summary of the income together with expenses for a specified period. They also prepare Balance Sheet, which shows the fiscal seat of the organisation at the terminate of the specified period. Financial statements are used to command the organisation. The figures of the electrical current twelvemonth tin survive compared alongside the previous year's figures. They tin also survive compared alongside the figures of other similar organisations.
Ratio analysis tin survive used to let on out together with analyse the fiscal statements. Ratio analysis helps to sympathise the profitability, liquidity together with solvency seat of the business.
3. Budgetary Control
A blogspot.com//search?q=what-is-business-meaning-definitions">budget is a planning together with 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 work organisation such every bit income, expenditure, production, upper-case missive of the alphabet together with revenue. Budgetary command is done past times the budget committee.
4. Break Even Analysis
Break Even Analysis or Break Even Point is the request 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 request volition drive losses together with whatever sale inward a higher house this request volition earn profits. The Break-even analysis acts every bit a command device. It helps to let on out the company's performance. So the fellowship tin accept collective activity to improve its performance inward the future. Break-even analysis is a unproblematic command tool.
5. Return on Investment (ROI)
Investment consists of fixed assets together with working upper-case missive of the alphabet used inward business. Profit on the investment is a vantage for adventure taking. If the ROI is high together with therefore the fiscal performance of a work organisation is goodness together with vice-versa.
ROI is a tool to improve fiscal performance. It helps the work organisation to compare its acquaint performance alongside that of previous years' performance. It helps to acquit 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 together with control. It must fulfill next requirements :-
- Objectives for individuals are jointly fixed past times the superior together with the subordinate.
- Periodic evaluation together with 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, together with 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 together with 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 together with employees. The information is analysed together with conclusions are drawn virtually managerial performance together with efficiency.
8. Management Information System (MIS)
In guild to command the organisation properly the management needs accurate information. They demand information virtually the internal working of the organisation together with also virtually the external environment. Information is collected continuously to seat problems together with let on out solutions. MIS collects data, processes it together with provides it to the managers. MIS may survive 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 together with CPM Techniques
Programme Evaluation together with Review Technique (PERT) together with Critical Path Method (CPM) techniques were developed inward USA inward the slowly 50's. Any programme consists of diverse activities together with sub-activities. Successful completion of whatever activity depends upon doing the operate inward a given sequence together with inward a given time.
CPM / PERT tin survive 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 guide keep to survive completed on fourth dimension otherwise the total projection volition survive delayed.
So, inward 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 together with toll of the task are minimised.
10. Self-Control
Self-Control agency self-directed control. H5N1 mortal is given liberty to laid his ain targets, evaluate his ain performance together with accept corrective measures every bit together with when required. Self-control is peculiarly required for guide house degree managers because they create non similar external control.
The subordinates must survive encouraged to purpose self-control because it is non goodness for the superior to command each together with everything. However, self-control does non hateful no command past times the superiors. The superiors must command the of import activities of the subordinates.
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