Business Control

Introduction :
Managers control their organisations by continuing monitoring the use and performance of resources especially money and people. The business control process involves several activities : establishing performance standards; identifying unsatisfactory performance; and pursuing appropriate action to correct significant deviations in performance.

What is business control?  This is the process of measuring and correcting the activities of subordinates to ensure that plans are completed and goals are achieved. Control is implemented by comparing actual results to planned results and correcting any significant differences.

 Managers control their organization by continually monitoring the use and performance of resources especially money and people. It is the final part of the management process, after planning, organizing  and directing, is the controlling function in which employee performance is monitored.

Controlling can be defined as the task of ensuring that the firm's objectives are being achieved. It entails establishing standards,  comparing performance against these standards and correcting deviations. Standards are set during the planning process. Standards form part of the objectives of the company. Standards are therefore set as at the time the objectives are set. The control process can therefore be said to start with the formulation of objectives.

Different types of control include the following :

• Financial control 
• Inventory control 
• Quality control 
• Credit control 

Controlling Techniques

A variety of tools and techniques have been used over the years to help managers in controlling their operations. Three of such tool which shall be discussed here are:

• Budgeting 
• Break-even analysis 
• Financial analysis