Characteristics and steps in controlling process

Characteristics and steps in controlling process

Characteristics of Control   

1. Managerial Function
2. Forward Looking
3. Continuous Activity
4. Control is related to planning
5. Essence of Control is Action

Steps in Controlling Process

1. Setting of Control Standards
2. Measurement of Performance
3. Comparing Actual and Standard Performance
4. Taking Corrective Action.

Techniques of Control or Methods of Establishing Control

A number of techniques or tools are used for the purpose of managerial control. Some of the techniques are used for the control of the overall performance of the organisation, and some are used for controlling specific areas  or aspects like costs, sales, etc

1.    Budgetary control technique

2.    Non-budgetary control techniques

1.    Budgetary control technique

The technique of budgetary control refers to the use of budgets as the means for controlling the activities of a business.

1.    Non-budgetary control techniques

Non-budgetary control techniques refer to all techniques of control other than the technique of budgetary control. Non-budgetary control techniques include techniques such as:

a.    Standard Costing

b.    Break-even analysis

c.    Inventory Control

d.    Internal Audit

e.    Statistical data analysis

f.     Personal observation

g.    Production planning and control

h.    Financial statement analysis

i.      Return on investment control

j.      Management information system

k.    Management audit

l.      PERT & CPM

m.   Human resources accounting

n.    Responsibility accounting

It may be noted that this type of classification of control techniques (i.e., classification of control techniques into budgetary control technique and non-budgetary control techniques) is not quite common.