Traditional techniques refer to the techniques that have been used by business organization for longer period of time and are still in use. is one of the primary functions of management, and it involves setting performance standards, measuring performance and taking corrective actions when necessary. The various techniques of managerial control may be classified into two broad categories: traditional techniques, and modern techniques.
Traditional Techniques
Traditional techniques are those which have been used by the companies for a long time now. However, these techniques have not become obsolete and are still being used by companies.
These include:
- Personal observation
- Statistical reports
- Breakeven analysis
- Budgetary control
Modern Techniques
Modern techniques of controlling are those which are of recent origin and are comparatively new in management literature. These techniques provide a refreshingly new thinking on the ways in which various aspects of an organization can be controlled. These include:
- Return on investment
- Ratio analysis
- Responsibility accounting
- Management audit
- Management information system.
