10 Types of Traditional Control Techniques
The 10 types of traditional techniques of controlling are discussed below :-
1. Direct Supervision too Observation
'Direct Supervision too Observation' is the oldest technique of controlling. The supervisor himself observes the employees too their work. This brings him inward straight contact alongside the workers. So, many problems are solved during supervision. The supervisor gets outset paw information, too he has improve agreement alongside the workers. This technique is most suitable for a small-sized business.
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2. Financial Statements
All line of piece of occupation organisation organisations prepare Profit too Loss Account. It gives a summary of the income too expenses for a specified period. They also prepare Balance Sheet, which shows the fiscal seat of the organisation at the halt of the specified period. Financial statements are used to command the organisation. The figures of the electrical current twelvemonth tin last compared alongside the previous year's figures. They tin also last compared alongside the figures of other similar organisations.
Ratio analysis tin last used to divulge out too analyse the fiscal statements. Ratio analysis helps to empathise the profitability, liquidity too solvency seat of the business.
3. Budgetary Control
A budget is a planning too 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 line of piece of occupation organisation such every bit income, expenditure, production, uppercase too revenue. Budgetary command is done past times the budget committee.
4. Break Even Analysis
Break Even Analysis or Break Even Point is the betoken of no profit, no loss. For e.g. When an organisation sells 50K cars it volition intermission even. It way that, whatever sale below this betoken volition campaign losses too whatever sale to a higher house this betoken volition earn profits. The Break-even analysis acts every bit a command device. It helps to divulge out the company's performance. So the society tin accept collective activeness to improve its performance inward the future. Break-even analysis is a elementary command tool.
5. Return on Investment (ROI)
Investment consists of fixed assets too working uppercase used inward business. Profit on the investment is a vantage for guide chances taking. If the ROI is high too thence the fiscal performance of a line of piece of occupation organisation is goodness too vice-versa.
ROI is a tool to improve fiscal performance. It helps the line of piece of occupation 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)
MBO facilitates planning too control. It must fulfill next requirements :-
- Objectives for individuals are jointly fixed past times the superior too the subordinate.
- Periodic evaluation too regular feedback to evaluate private performance.
- Achievement of objectives brings rewards to individuals.
7. Management Audit
Management Audit is an evaluation of the administration every bit a whole. It critically examines the total administration process, i.e. planning, organising, directing, too controlling. It finds out the efficiency of the management. To banking company check the efficiency of the management, the company's plans, objectives, policies, procedures, personnel relations too 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 too employees. The information is analysed too conclusions are drawn close managerial performance too efficiency.
8. Management Information System (MIS)
In society to command the organisation properly the administration needs accurate information. They require information close the internal working of the organisation too also close the external environment. Information is collected continuously to seat problems too divulge out solutions. MIS collects data, processes it too provides it to the managers. MIS may last manual or computerised. With MIS, managers tin delegate authority to subordinates without losing control.
9. PERT too CPM Techniques
Programme Evaluation too Review Technique (PERT) too Critical Path Method (CPM) techniques were developed inward USA inward the belatedly 50's. Any programme consists of diverse activities too sub-activities. Successful completion of whatever activity depends upon doing the operate inward a given sequence too inward a given time.
CPM / PERT tin last used to minimise the total fourth dimension or the total terms required to perform the total operations.
Importance is given to identifying the critical activities. Critical activities are those which guide keep to last completed on fourth dimension otherwise the total projection volition last delayed.
So, inward these techniques, the chore 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 too terms of the chore are minimised.
10. Self-Control
Self-Control way self-directed control. H5N1 somebody is given liberty to laid his ain targets, evaluate his ain performance too accept corrective measures every bit too when required. Self-control is peculiarly required for happen marking managers because they produce non similar external control.
The subordinates must last encouraged to role self-control because it is non goodness for the superior to command each too everything. However, self-control does non hateful no command past times the superiors. The superiors must command the of import activities of the subordinates.
