Commerce Exam  >  Commerce Notes  >  Key Notes: Controlling

Key Notes: Controlling - Commerce PDF Download

Controlling 

It can be defined as comparison of actual performance with the planned performance.
According to Ricky W Griffin, “Controlling function leads to goal achievement, an organisation without effective control is not likely to reach its goals.”

Importance of Controlling

(i) Helps in achieving organisational goods
(ii) Judging accuracy of standards
(iii) Making efficient use of resources
(iv) Improving employee motivation
(v) Ensures order and discipline
(vi) Facilitate co-ordination in action
(vii) Controlling help in minimising the errors

Limitations of Controlling

(i) Difficulty in setting quantitative standards
(ii) No control on external factors
(iii) Resistance from employees
(iv) Costly affair

Relationship Between Planning and Controlling

(i) Planning and controlling are interdependent and interlinked activities.
(ii) Planning and controlling both are forward looking function.

Controlling Process

(i) Setting up of standards
(ii) Measuring of performance
(iii) Compare performance against standard
(iv) Analysing deviation
(a) Critical point control
(b) Management by exception
(v) Taking Corrective measure

Techniques of Managerial Control

There are two technique of managerial control
(i) Traditional techniques
(ii) Modern techniques

Traditional Techniques

(i) Personal observation
(ii) Statistical reports
(iii) Break-even analysis
(iv) Budgetary control

Modern Techniques

(i) Return on investment
(ii) Ratio Analysis
(a) Liquidity ratio
(b) Solvency ratio
(c) Profitability ratio
(d) Turnover ratio
(iii) Responsibility Accounting
(a) Cost or expenses centre
(b) Revenue centre
(c) Profit centre
(d) Investment centre
(iv) Management Audit
(v) Network Techniques (PERT and CPM)

The document Key Notes: Controlling - Commerce is a part of Commerce category.
All you need of Commerce at this link: Commerce

Top Courses for Commerce

Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

mock tests for examination

,

Key Notes: Controlling - Commerce

,

Important questions

,

past year papers

,

MCQs

,

Exam

,

Key Notes: Controlling - Commerce

,

pdf

,

Summary

,

Extra Questions

,

study material

,

ppt

,

Key Notes: Controlling - Commerce

,

Viva Questions

,

shortcuts and tricks

,

Objective type Questions

,

video lectures

,

Semester Notes

,

practice quizzes

,

Previous Year Questions with Solutions

,

Free

,

Sample Paper

;