Explain the Control Techniques used in Controlling?

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Control Techniques
1. Budgeting techniques

a. Involves a very practical approach for carrying on with the controlling process.
b. Budgets are very future oriented and largely depends on the forecasting trends based on the past.
c. Budgeting depicts the forecasting trends mainly depending on the finance and the connected numerical information.
d. This technique acts as a very critical and an important tool for comparing what one has planned and what is the actual performance against it.
e. But the main drawback of this technique is that it takes into account the past performance as the only guide, which at times can prove to be short.
f. As a result of this, the whole package has to be worked out on the zero bases.

2. The Activities Network control

a. Forms a very critical and a necessary part of the management tool.
b. Here the performance of the various activities is compared and then depending on this, one comes to know about the various deviations and then accordingly the activities can be controlled.
c. Various techniques like the Gantt Charts, the Program Evaluation and the Review Techniques etc are used for performing the various activities.

3. Statistical database control

a. In this method, the generation of the Statistical data coupled with the planning system is generated, mainly for the management control system.
b. Special reports like the market prospects, the customers survey findings etc. are used as a feedback for the different activities involved and these activities can be based on the criteria of per person or per machine or per activity.
c. The data can involve the relations or the trends, which can be easily extrapolated.
d. For controlling the deviations and to know about them, the audits like the statutory audits, the performance audits, the cost audits etc., can be carried out.

4. Personal observations
a. This technique acts as a great tool for controlling and bringing the system back to having a very sound health.
b. In many cases, the eyes act as the best tool for noticing the overbalancing in the people, their working, and the environment.
c. A lot of time is saved by this technique.
d. The personal observation avoids much of the paper work.
e. One of the best methods used here is the ‘Wandering Around’ method.
f. In this method, wandering around is taken as a regular exercise and the work monotony is used.
g. People are not allowed to get stuck into their cabins for long periods of the time as with this, a gap is created between the relationships and the environmental attachment.

5. Social Controls

a. The managers possessing the objective view of the outsiders are helped a lot by this technique.
b. The users clubs of the customers, the supplier’ s club, the dealer’s club, the employees clubs etc. can be organized easily with this method.

6. Systems and the Procedures

a. Manuals form very necessary documents for bringing some rigidity in the operation.
b. It helps in creating a judicial system for an organization.
c. Management audits can be conducted sometimes in this technique to reduce the lacunae that may be present in an organization.

7. Management by the Objectives

a. Acts as a great tool for the control purpose.
b. By having a clear picture of the various objectives in mind, one can easily plan the various controls.
c. Management can be observed as the people working for the measurable goals, deciding the output at the end of an activity.

This article has been written by KJ Singh a MBA Graduate from a prestigious Business School In India
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