Introductory Observations – Overall and Preventive Control

INTRODUCTORY OBSERVATIONS

From the viewpoint of approach to controlling; controlling techniques are of two broad types – direct control and preventive control. Direct control may again be partial or overall, as depicted below:

Direct controls are based on feedback, by measuring deviations from standards analyzing the causes of deviations and taking the necessary corrective steps to bring performance on the right track.

Direct controls may be partial in nature, designed for specific things like policies, wages I salaries, cash, cost, capital expenditure etc.

Overall controls are designed to measure the success of organization as a whole, against organizational objectives.

Preventive controls are based on the philosophy of preventing undesirable deviations from occurring, by developing and maintaining a highly qualified managerial staff.