The document discusses various organizational control techniques used by managers. It describes control methods such as budgeting, non-budgetary devices, benchmarking, financial ratio analysis, linear programming, Gantt charts, critical path method, program evaluation and review technique, management by exception, and information technology. Each technique is explained along with its advantages and limitations for organizational control.

1. CONTROL
TECHNIQUES

2. TRADITIONAL
NONBUDGETARY
CONTROL BALANCED
DEVICES SCORECARD
BENCHMARKING
BUDGETING
INFORMATION
TECHNOLOGY
LINEAR
PROGRAMMING
COST
CONTROL TECHNIQUES CONTROL
MANAGEMENT
BY
EXCEPTION
FINANCIAL
PERT RATIO
ANALYSIS
CRITICAL GANTT
PATH CHART
METHOD
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3. WE HAVE FOLLOWING COMMONLY KNOWN
ORGANISATIONAL CONTROL TECHNIQUES
 BUDGET AS CONTROL TECHNIQUE
 TRADITIONAL NONBUDGETARY CONTROL DEVICES
 BALANCED SCORECARD
 BENCHMARKING
 FINANCIAL RATIO ANALYSIS
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4.  LINEAR PROGRAMMING
 GANTT CHART
 CRITICAL PATH METHOD(CPM)
 PROGRAM EVALUATION & REVIEW TECHNIQUE(PERT)
 MANAGEMENT BY EXCEPTION AS CONTROL DEVICE
 INFORMATION TECHNOLOGY
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5. BUDGETING
BUDGETING: THE FORMULATION OF PLANS FOR A GIVEN
FUTURE PERIOD IN NUMERICAL TERMS
SOME BUDGET DEVELOPMENT METHODS ARE AS FOLLOWS:
 TOP-DOWN BUDGETING
 BOTTOM-UP BUDGETING
 ZERO-BASED BUDGETING
 FLEXIBLE BUDGETING
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6. ADVANTAGE OF BUDGETING
1. BUDGET IS AN INSTRUMENT WHEREBY MANAGEMENT
DETERMINES THE FUTURE COURSE OF ACTION.
2. BUDGET IS ALWAYS RELATED TO A SPECIFIED PERIOD.
3. BUDGET IS EXPRESSED IN QUANTITATIVE TERMS.
4. BUDGET IS ONLY AN ESTIMATED PLAN OF ACTION.
5. BUDGET PROVIDES STANDARD TO BE ACHIEVED.
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7. LIMITATIONS OF BUDGETING
1. PROVES DANGEROUS WHEN IT IS BASED ON WRONG
ESTIMATES.
2. SOMETIMES BUGETARY CONTROL BECOMES
COMBERSOME.
3. BUDGET OFTEN CONTROL WRONG THINGS.
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8. TRADITIONAL NONBUDGETARY
CONTROL DEVICES
THE ARE SEVERAL TRADITIONAL NON BUDGETARY
CONTROL DEVICES SUCH AS USE OF;
 STATISTICAL DATA OF MANY ASPECTS OF THE OPERATION
 SPECIAL REPORTS AND ANALYSIS OF SPECIFIC AREAS
 THE OPERATIONAL AUDIT AND INDEPENDENT APPRIASAL
BY
A STAFF OF INTERNAL OR EXTERNAL AUDITORS
 PERSONAL OBSERVATION SUCH AS BY WALKING AROUND
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9. FINANCIAL RATIO ANALYSIS-
EXAMINES THE RELATIONSHIP BETWEEN SPECIFIC
FIGURES ON THE FINANCIAL STATEMENTS AND
HELPS
TO EXPLAIN THE SIGNIFICANCE OF THESE FIGURES.
LIQUIDITY RATIOS
PROFITABILITY RATIOS
DEBT RATIOS
ACTIVITY RATIOS
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10. COST CONTROL
COST CONTROL- COST CONTROL IS APPLIED MAINLY BY
BIG MANUFACTURING COMPANY, HOTELS ETC TO HAVE
STRICT CONTROL OVER COST AND REDUCE PER UNIT
COST. THE OTHER OBJECTIVES OF THE COST CONTROL
INCLUDE:
2. ACCURATELY ASSERTING PER UNIT, PER PROCESS AND
PER DEPARTMENT COST.
3. DETERMINING SOURCES OF WASTAGE RELATING TO
LABOUR AND MATERIALS.
4. ON THE BASIS OF STANDARD COST FIGURES,
ESTIMATING THE COST OF PROPOSED PRODUCTION LOT
TO QUOTE COPETITIVE TENDER PRICE.
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11. 1. PREPARING COMPARATIVE COST FIGURES OF
REPLACEABLE MATERIALS, MACHINES OR LABOUR.
2. COMPARING FINANCIAL FIGURES WITH COST FIGURES.
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12. BENCHMARKING
BENCHMARKING- THE SEARCH FOR THE BEST PRACTICES
AMONG COMPETITORS OR NONCOMPETITIVES THAT
LEAD TO THEIR SUPERIOR PERFORMANCE.
BENCHMARK- THE STANDARD OF EXCELLENCE AGAINST
WHICH TO MEASURE AND COMPARE.
THE METHODOLOGY ADOPTED IS AS UNDER:
 IDENTIFY THE PROBLEM AREAS.
 IDENTIFY OTHER INDUSTRIES.
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13. 1. IDENTIFY ORGANISATIONS THAT ARE LEADERS IN
THESE AREAS.
2. SURVEY COMPANIES FOR MEASURES AND PRACTICES.
3. VISIT THE “BEST PRACTICE” COMPANIES TO IDENTIFY
LEADING EDGE PRACTICES.
4. IMPLEMENT NEW AND IMPROVED BUSINESS PRACTICES.
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14. COST OF BENCHMARKING
BENCHMARKING IS MODERATELY EXPENSIVE PROCESS,
BUT MOST ORGANISATIONS FIND IT MORE THAN PAYS
FOR ITSELF. THREE MAIN TYPES OF COSTS ARE:
• VISIT COSTS
• TIME COSTS
• BENCHMARKING DATABASE COSTS
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15. BALANCED SCORECARD
BALANCED SCORECARD- A PERFORMANCE MEASUREMENT
TO THAT LOOKS AT FOUR AREAS- FINANCIAL, CUSTOMER,
INTERNAL PROCESSES, AND
PEOPLE/INNOVATION/GROWTH ASSETS-THAT
CONTRIBUTES TO A COMPANY’S PERFORMANCE.
THE FOUR GENERAL PERSPECTIVES WHICH HAVE BEEN
PROPOSED BY BALANCE SCORECARD ARE AS UNDER:
• FINANCIAL PERSPECTIVE
• CUSTOMER PERSPECTIVE
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16. • INTERNAL PROCESS PERSPECTIVE
• INNOVATION AND LEARNING PERSPECTIVE
LIMITATIONS
• SCORES ARE NOT BASED ON ANY PROVEN ECONOMIC OR
FINANCIAL THEORY.
• BALANCED SCORECARD DOES NOT PROVIDE A
BOTTOMLINE SCORE.
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17. LINEAR PROGRAMMING
ACCORDING TO WILLIAM M. FOX
“LINEAR PROGRAMMING IS A PLANNING TECHNIQUE
THAT PERMITS SOME OBJECTIVE FUNCTION TO BE
MINIMISED OR MAXIMISED WITHIN THE FRAMEWORK
OF GIVEN SITUATIONAL RESTRICTIONS.”
REPRESENTATION-
AX1+BX2≤Z
REQUIREMENTS-
6. OBJECTIVE FUNCTION.
7. CONSTRAINTS.
8. LINEARITY.
9. NONEGATIVITY
10. FINITENESS.
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18. ADVANTAGES
1. FACILITATES LOGICAL THINKING AND STUDY
OF DATA.
2. ONE CAN EVALUATE THE COSTS AND BENEFITS
OF DIFFERENT ALTERNATIVES.
3. HELPFUL IN MAKING ADJUSTMENTS IN THE
PLAN.
4. CAN BE APPLIED TO A VARIETY OF
MULTIDIMENSIONAL
PROBLEMS.
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19. LIMITATIONS
• SOLVES PROBLEM OF LINEAR NATURE.
• CANNOT PROVIDE SOLUTIONS TO PROBLEMS WHICH
INVOLVE VARIABLES NOT CAPABLE OF BEING
EXPRESSED QUANTITATIVELY.
• UNCERTAINTIES ARE NOT CONSIDERED.
• RESULT UNDER THIS TECHNIQUE ARE NOT
NECESSARILY TO BE IN WHOLE NUMBERS.
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20. GANTT CHART
• THIS CHART SYSTEM WAS DEVELOPED BY HENRY
L. GANTT.
• GANTT CHART- A BAR CHART THAT SHOWS THE
TIME RELATIONSHIPS BETWEEN THE “EVENTS”
OF A PRODUCTION PROGRAM.
• MILESTONE BUDGETING OR MILEPOST-
ADVANCED TECHNIQUE OF GANTT CHART
MILESTONE BREAKS A PROJECT DOWN INTO
CONTROLLABLE PIECES.
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21. CRITICAL PATH METHOD(CPM)
• DEVELOPED BY M.R. WALKER OF USA IN 1956.
• IT IS USED FOR OPTIMISING RESOURCE ALLOCATION
AND MINIMISING OVERALL COST FOR A GIVEN PROJECT.
• PROCEDURE-
4. BREAK DOWN THE PROJECT INTO VARIOUS ACTIVITIES
SYSTEMATICALLY.
5. NUMBER ALL THE EVENTS AND ACTIVITIES.
6. CALCULATE THE EARLIEST START TIME, EARLIER FINISH
TIME, LATEST START TIME AND LATEST FINISH TIME.
7. DETERMINE TOTAL FLOAT TIME.
8. IDENTIFY THE CRITICAL ACTIVITIES AND CONNECT
THEM WITH DOUBLE LINE ARROW.
9. CALCULATE TOTAL DURATION OF PROJECT.
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22. CPM NETWORK DIAGRAM
4
9
6
4
1 2 2 3 3
6
1
5
2
7 8
5
7 10
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23. ADVANTAGES
• HIGHLIGHTS THE CRITICAL ACTIVITIES.
• PROVIDES A TECHNIQUE OF PLANNING AND SCHEDULING.
• GIVES COMPLETE INFORMATION OF ACTIVITY.
• HELPS TO IDENTIFY POTENTIAL BOTTLENECKS.
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24. LIMITATIONS
• OPERATES ON ASSUMPTION OF PRECISE TIME.
• DOES NOT INCORPORATE STATISTICAL ANALYSIS IN
DETERMINIG TIME ESTIMATES.
• FOR EVERY CHANGE INTRODUCED ENTIRE PROJECT
EVALUATION HAS TO BE REPEATED.
• NOT SUITABLE FOR A SITUATION WHICH DOES NOT HAVE
DEFINITE START AND FINISH TIME.
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25. I GANTT CHART
A
B
C
D
E
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26. II GANTT WITH MILE STONE
A 1 2 3 4
B 5 6 7 8
C
9 10 11 12
D 13 14
E 15 16 17 18 19
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A

27. III GANTT WITH MILE STONES AND NETWORK OF MILESTONES
A 1 2 3 4
B 5 6 7 8
C
9 10 11 12
D 13 14
E 15 16 17 18 19
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JAN FEB MAR APRIL MAY JUNE JUL AUG SEP

28. PROGRAM EVALUATION AND REVIEW
TECHNIQUE(PERT)
• PERT- A TIME EVENT NETWORK ANALYSIS SYSTEM IN
WHICH THE VARIOUS EVENTS IN A PROJECT OR PROGRAM
ARE IDENTIFIED WITH A PLANNED TIME ESTABLISHED
FOR EACH.
METHODOLOGY
• PREPARATION OF THE NETWORK .
• NETWORK ANALYSIS.
• SCHEDULING.
• TIME COST TRADE OFFS.
• RESOURCE ALLOCATION.
• PROJECT CONTROL.
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29. PERT FLOWCHART
EVENTS(MAJOR MILESTONES OF PROGRESS) IN THE MAJOR ASSEMBLY OF AN AIRPLANE
(1)ORDER PROGRAM GO AHEAD (2)INITIATE ENGINE PROCUREMENT(3)COMPLETE PLANS AND
SPECIFICATIONS (4)COMPLETE FUSELAGE DRAWINGS (5)SUBMIT GFAE*REQUIREMENTS (6)AWARD TAIL
ASSEMBLY SUBCONTRACT (7)AWARD WINGS SUBCONTRACT (8)COMPLETE MANUFACTURE OF FUSELAGE
(9)COMPLETE ASSEMBLY OF FUSELAGE ENGINE (10)RECEIVE WINGS FROM SUBCONTRACTORS (11)RECEIVE
TAIL ASSEMBLY FROM SUBCONTRACTOR (12)RECEIVE GFAE (13)COMPLETE AIRCRAFT
*GFAE:GOVERNMENT FURNISHED AIRPLANE EQUIPMENT
102.1
2 9
17.3 10.0
17.3 56.0
4 8
12.3 10.3 40.0
1 3 8.0
13
7 10
12.0 8.6
40.6
8.6 11 18.6
6
52.0
12
5
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30. ADVANTAGES
• FORCES MANAGER TO PLAN.
• FORCES PLANNING ALL THE WAY DOWN THE LINE.
• CONCENTRATES ATTENTION ON CRITICAL ELEMENT THAT
MAY NEED CORRECTION.
• MAKES POSSIBLE A KIND OF FORWARD LOOKING
CONTROL.
• ENABLES MANAGERS TO AIM REPORTS AND PRESSURE
FOR ACTION AT THE RIGHT SPOT AND LEVEL IN THE
ORGANISATION STRUCTURE AT THE RIGHT TIME.
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31. LIMITATIONS
• TECHNIQUE IS NOT USEFUL WHEN THE PROGRAM IS
NEBULOUS AND NO REASONABLE ESTIMATES OF
SCHEDULE CAN BE MADE.
• PERT HAS ITS EMPHASIS ONLY ON TIME AND NOT COST.
• NOT PRACTICABLE FOR ROUTINE PLANNING OF
RECURRING ACTIVITIES.
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32. INFORMATION TECHNOLOGY
THE DEVELOPMENTS IN INFORMATION TECHNOLOGY
GREATLY FACILITATES ORGANISATIONAL CONTROL AT A
RELATIVELY LOW COST.
INFORMATION TECHNOLOGY HAS PROMOTED THE
DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM.
MANAGEMENT INFORMATION SYSTEM-
A FORMAL SYSTEM OF GATHERING, PROCESSING AND
DISPERSING INFORMATION INTERNAL AND EXTERNAL TO
THE ENTERPRISE IN A TIMELY, EFFECTIVE, AND
EFFICIENT MANNER TO SUPPORT MANAGERS IN THEIR
JOBS.
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33. HOW MIS IS USED
1. MANAGERS NEED INFORMATION TO MONITOR
ORGANISATIONAL PERFORMANCE AND TO
CONTROL ORGANISATIONAL ACTIVITIES.
2. COMPUTERS ARE BEING USED TO COLLECT
AND STORE INFORMATION FOR CONTROL
PURPOSES.
3. USE TO MONITOR EACH EMPLOYEE’S
COMPUTER USAGE TO MEASURE EMPLOYEE
PERFORMANCE.
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34. LIMITATIONS OF INFORMATION
TECHNOLOGY CONTROL
1. PERFORMANCE LIMITATIONS
2. BEHAVIOURAL LIMITATIONS
3. HEALTH RISKS
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35. MANAGEMENT BY EXCEPTION
• CONCEPT OR POLICY BY WHICH MANAGEMENT
DEVOTES ITS TIME TO INVESTIGATING ONLY
THOSE SITUATIONS IN WHICH ACTUAL RESULTS
DIFFER SIGNIFICANTLY FROM PLANNED
RESULTS.
• ATTENTION IS GIVEN ONLY TO THOSE MATERIAL
DEVIATIONS REQUIRING INVESTIGATION.
• THE TOOLS THAT FACILITATES THIS CONCEPT
INCLUDE DECISION SUPPORT SYSTEM,
PERFORMANCE REPORT ETC.
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36. CONCLUSION
PLANNING IS SUICIDAL WITHOUT CONTROL AND
VICEVERSA. ORGANISATIONS USE VARIOUS TOOLS FOR
CONTROLLING. HOWEVER APPLICATION OF THESE
CONTROL TECHNIQUES DEPEND ON SITUATION AND
REQUIREMENTS OF THE ORGANISATION.
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37. REFERENCES
• MANAGEMENT- HEINZ WEIHRICH, MARK V. CANNICE,
HAROLD KOONTZ.
• MANAGEMENT- STEPHEN P. ROBBINS, MARY COULTER
• MANAGEMENT- STONER, FREEMAN, AND GILBERT.
• PRINCIPLES AND FUNCTIONS OF MANAGEMENT- J.K.JAIN.
• WWW.WIKIPEDIA.ORG.
• WWW.ASK.COM.
• WWW.GOOGLE.COM.
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38. ANY QUERY ?

39. THANK YOU