This article throws light upon the three key benefits of exercising control in an organisation. The benefits are: 1. Changing Circumstances 2. Compounding of Errors 3. Organisational Complexity. Benefit # 1. Changing Circumstances: In today's highly complex and turbulent environment, all business organisations must find ways of coping with change. If managers could set goals and achieve them in no [...]
This article throws light upon the top three types of control methods in an organisation. The types are: 1. Non-Quantitative Methods of Control 2. Quantitative Control Techniques 3. Using Budgets and Budgetary Control. Type # 1. Non-Quantitative Methods of Control: Non-quantitative methods of control are those which are used by managers in performing other managerial functions, viz., planning, organising, staffing [...]
This article throws light upon the four most commonly calculated ratios. The ratios are: 1. Liquidity Ratios 2. Asset-Management Ratios 3. Debt Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Several liquidity ratios are used to learn how liquid (easily converted into cash) an organisation's assets are. These ratios measure the ability of the organisation to raise enough cash [...]