•The concept of controlling
•Characteristics of controlling
•Objectives of effective
controlling
•Requirements of effective
controlling
•Controlling process
•Kinds of techniques in
controlling
•Limitations in control

Outside the context of an organization, what/who comes first in
your mind when you hear the word "controlling"?
ⓘ Start presenting to display the poll results on this slide.

is a systematic exercise which is
called a process of checking actual
performance against the standards or
plans to ensure adequate progress
and also recording such experience as
is gained as a contribution to possible
future needs.

• To make the plans more effective
• To make organizations effective
• To help in Decision Making
• To apply corrective measures
• To maximize the utilization of resources
• To motivate employees
• To fix responsibility
• To face the challenging environment

• Reflecting Organizational Needs
• Forward Looking
• Promptness in
• Pointing out Exceptions at Critical Points
• Objectives
• Flexible
• Economical
• Simple
• Motivating
• Reflecting

01. 03. 04.
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The method of personal observation and guidance is one of the oldest techniques of
controlling. It is a traditional technique in which supervisors review the work of employees.
In this way, supervisors are in direct contact with employees and have first-hand knowledge
of the ways of working.

The statistical method is used to make a total analysis of the data and reports that are
measured using averages, ratio, percentages, mean, median, and more. The data and
information mentioned in statistical reports help managers to understand the problems and
find out the appropriate solutions to handle them.

It is a situation of no profit no loss. The break-even analysis is in the
form of sale output, production volume, the price of products, and it
is also used to define the profit and loss according to the selling
price, the volume of goods, and different ratios. It also measures the
performance and the impact on the revenues.

Used by managers for controlling the different functions and operations that are
performed according to the set budget for a particular plan. It is an important method
of controlling that helps an organization to decide the level of spending and evaluating
revenues.

This technique enables an organization to evaluate the benefit received from the
investment, and measure the total profits made against the capital that is invested.

The technique of ratio analysis gives a total understanding of the organization’s
performance, efficiency, liquidity, and profits. It is the most common form of
controlling technique used by enterprises.

Responsibility accounting is a system of accounting in which the different units of an
organization are converted into responsibility centers. A production budget acts as a
guide in knowing whether the costs are under control or not. A responsibility center can
be a division, department, or section headed by a manager who is accountable for
achieving specified targets.

Auditors investigate the in-depth performance of management concerning the day-to-
day working of systems and functions. In management audit, the auditor systematically
evaluates the operational procedures and various management functions. Auditors do
thorough checking of the entire management system.

Program Evaluation and Review Technique (PERT) and Critical Path Method
(CPM) are significant techniques used for controlling. CPM and PERT
methods are used to minimize the cost and time for particular activities. It
helps in taking necessary actions for completing the activities within the
specified time.

Management Information system (MIS) basically provides information for effective
decision-making. Managers can retrieve any data as and when needed. It is one of
the cost-effective controlling techniques available for managers.
Moreover, it provides information at the right time and helps manage a huge bundle of
data. The information obtained from MIS is accurate and facilitates decision-making.

• Influence of External Factors
• Expensive
• Lack of Satisfactory Standards
• Opposition from Subordinates

References:
• What is Controlling? Types, Characteristics, Importance, Process, Techniques,
https://www.geektonight.com/what-is-controlling/
• Idea of Controlling, https://unacademy.com/content/cbse-class-11/study-
material/business-studies/idea-of-
controlling/#:~:text=Objective%20of%20Controlling,-
Below%20are%20the&text=To%20ensure%20that%20the%20performance,of
%20costs%2C%20effort%2C%20and%20time
• Principles of Management: Controlling,
https://www.brainkart.com/article/Requirements-of-Effective-Control_7551/
• Venkatesh, Control: Definition, Characteristics, Importance and Limitations,
https://www.yourarticlelibrary.com/management/controlling/control-
definition-characteristics-importance-and-limitations/53346