Control Techniques

Managers use a large number of tools and techniques for effective controlling. Therefore. we need to discuss specific techniques for managing the control process. First we'll discuss budgetary control. And then we shall deal with other control techniques and methods.

Budgetary Control : Budgeting is the formulation of plans for a given future period in numerical terms. Organizations may establish budgets for units, departments, divisions, or the whole organization. The usual time period for a budget is one year and is generally expressed in financial terms. Budgets arc the foundation of most control systems.8 They provide yardsticks for measuring performance and facilitate comparisons across divisions. between levels in the organisation. and from one time period to another. Budgets usually serve four control purposes : (i) they help managers co-ordinate resources: (ii) they help define the standards needed in all control systems; (iii) they provide clear and unambiguous guidelines about the organization’s resources and expectations and (iv) they facilitate performance evaluations of managers and units.