This article throws light upon the five main steps involved in the process of control. The steps are: 1. Determining the Areas of Control 2. Setting Standards 3. Measurement of Performance 4. Comparison of Performance against Standards 5. Correction of Deviations. Step # 1. Determining the Areas of Control: It is not possible for managers to control every activity and [...]
After reading this article you will learn about:- 1. Meaning of 'Management by Exception' 2. Merits of 'Management by Exception' 3. Principles. Meaning of 'Management by Exception': Trying to control everything may end up in controlling nothing". Managers cannot control every organisational activity. This is neither desirable nor possible within the frame of time, money and resource constraints. If actual [...]
After reading this article you will learn about the benefits and limitations of budgeting. Benefits of Budgeting: Budgeting assists managers at all levels in carrying out planned activities. It has the following benefits: (a) Standards of performance: Budgets provide standards of performance for various periods and sub-periods, Actual performance can be compared against standards at frequent time intervals and timely [...]