Techniques of Managerial Control
These are the techniques which were commonly used by various companies. Although in present environment these have become outdated but still many companies are using these: personal observation, statistical reports, break even analysis, and budgetary control.
Personal observations: this is the most traditional and most popular method of control. Under this manager observe the subordinators while they are performing jobs. They generally note down their observations. With the help of observations they can easily analysis the performance of employees. By comparing the performance chart of current year with previous year the managers can know the progress of their performance.
Statistical Reports: various concepts of stats such as graphical presentation, correlation, average, percentage, rations etc, are very useful analyzing the performance of employees. By converting performances report into statistical chart or table you can easily point out the progress or deviation of performance.
Break even Analysis: break even analysis is a useful technique to study relationship between costs and profit, break even point is a point of no profits no loss. When a sale reaches break even point, it refers to sale amount which company is neither earning profits nor incurring loss. With the help of break even analysis technique manager can estimate profits at levels of cost and revenue.