control techniques in management.pptx

Dr.S.BELLARMIN DIANA
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
BON SECOURS COLLEGE FOR WOMEN, THANJAVUR.

 MEANING
 NATURE
 BENEFITS
 CHARACTERISTICS OF GOOD SYSTEM OF
CONTROL
 IMPORTANT CONTROL TECHNIQUES

 If planning is ‘looking ahead
‘,controlling is ‘looking back’
This is because if a task is not
planned, it cannot be
controlled.
It may therefore, be said that
‘planning without control is
useless and control without
planning is meaningless’.

Backward looking
Meaning to planning
Appraisal or evaluation
Pervasive function
Forward looking too
Continuous process

 It ensures attainment of enterprise
objective
 It highlight the quality of plans
 It ensures successful implementation of
plans
 It ensures that employees work with
commitment
 It provides scope for delegation
 It facilitates co-ordination
 It promotes efficiency.

 Budgetary control
 Cost control
 Inventory control
 Break even point analysis
 Profit and loss control
 Statistical analysis
 External and internal audit
 Return on investment control
 Management information system

 Sales budget
 Selling and distribution cost budget
 Production budget
 Production overhead budget
 Purchase budget
 Cash budget
 Master budget

 “Budgetary control is system of control in
which all activities of an enterprise are
planned ahead in the form of budgets and
actual results are compared with the
budgetary standards and necessary
corrective actions are taken in case of
deviations”.

 Planned approach
 Induces employees
 Proper co-ordination
 Optimum use of the available resource

 A large number of accuracy
 Not allow flexibility
 Not guarantee result
 Not a substitute for management

“Thee process of controlling both direct and
indirect costs of an enterprise in order to
achieve cost effectiveness is what is known as
cost control”.

fixed cost variable cost
watchman’s material cost
salary

 Inventory constitutes a high proportion of
the current assets of many concerns.
inventory control essential to ensure an
optimum level of inventory. Excessive
inventory represents wasteful investment
of capital.

 The break-even point is that point at which
total costs are equal to total revenue.
break-even point means no profit and
no loss.

FIXED COST
BEP=
CONTRIBUTION PER UNIT
CPU=SELLING PRICE PU –VARIABLE COST
PU
BES=BREAK-EVEN(UNIT) SELLING PRISE PU

 Fixed cost always remain constant
 Variable cost are always variable
 Number of units produced increases year
after year
 All the units produced are sold

 Profit and loss control is suitable for retail
establishments , multi-product organization
and so on.

 Making a statistical analysis of business
activities also helps to perform to control.
 average , correlation

EXTERNAL AUDIT:
compulsory for companies , act 1956
qualified chartered accountant
Auditor shows the true fair picture
of profit or loss in balance sheet.
INTERNAL AUDIT:
company may have internal audit.
under taken by company’s own staff

 If the return conforms to the normal return
expected for such a business.
Return on Investment=Net Operating Profit
Capital Employed

Information system
Data(input) Processing Information
(output)

HARDWARE:
central processing unit
monitor
key-board
mouse
SOFTWARE:
k7
power point
ms office

control techniques in management.pptx

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