Control in management is the continuous and goal-oriented process of monitoring performance,

comparing it with standards, and taking corrective action.

This image explains Techniques of Control in Management.

Control means the process of checking whether actual performance matches planned
performance and taking corrective action if needed.
The image divides control techniques into Traditional Techniques and Modern Techniques.

1. Traditional Techniques of Control

These are older and basic methods used by managers.

• Personal Observation
Manager personally watches employees and work progress.

Example:
A factory manager walks around the shop floor to check worker performance.

Advantage:
• Direct information
• Quick detection of problems

Limitation:
• Time-consuming
• Not possible in large organizations

• Budgeting
Preparing expected income and expenses in advance, then comparing with actual results.

Example:
A company plans ₹5 lakh marketing expense but actually spends ₹6 lakh.

Purpose:
To control costs and use funds properly.

• Break-Even Analysis
Used to know the point where Total Cost = Total Revenue (no profit, no loss).
\text{Break-Even Point: Total Revenue = Total Cost}

Example:
If a product sells after 100 units with no loss/no profit, then 100 units is break-even point.

Use:
Helps decide minimum sales needed.

• Financial Statements
Using Profit & Loss Account, Balance Sheet, Cash Flow Statement to control financial
performance.

Example:
Manager checks profit statement to see if business is earning enough.

• Statistical Control
Using data, charts, averages, percentages, graphs etc. to monitor performance.

Example:
Monthly sales graph comparison.

• Self-Control
Employees control their own work using discipline and responsibility.

Example:
An employee finishes work on time without supervision.

2. Modern Techniques of Control

These are advanced techniques used in modern organizations.

• MIS (Management Information System)

A computer-based system that provides timely information to managers.
Example:
Dashboard showing daily sales, stock, attendance.

Benefit:
Quick decision-making.

• Management Audit
Systematic examination of management policies and performance.

Example:
Checking whether managers are achieving goals efficiently.

• Responsibility Accounting
Each department manager is responsible for costs, revenues, and results of their area.

Example:
Sales manager responsible for sales target.

• PERT and CPM

Used for project planning and scheduling.
• PERT = Program Evaluation Review Technique
• CPM = Critical Path Method

Example:
Used in construction projects.

Benefit:
Completes projects on time.

• Balanced Scorecard
Measures performance using financial + non-financial factors.
It checks:
• Finance
 • Customer satisfaction
• Internal processes
• Learning and growth

• Ratio Analysis
Uses financial ratios to judge performance.

Example:
Current Ratio, Profit Ratio, Debt Ratio.

• EVA (Economic Value Added)

Measures whether company creates real profit after covering cost of capital.
EVA = NOPAT - (Capital \times Cost\ of\ Capital)
If EVA is positive → Company creates value.

Simple Difference
Traditional Modern
Old/basic methods Advanced/systematic methods
More manual More data & technology based
Simple control Strategic control

Exam Definition
Control techniques are tools and methods used by managers to measure actual performance,
compare it with standards, and take corrective action.

Easy Memory Trick

Traditional = Observe, Budget, Finance
Modern = MIS, Audit, Projects, Ratios

If you’d like, I can also make a 1-page handwritten-style exam answer for this question (very
scoring).
These images explain the Modern Techniques of Control in management. I’ll explain each one in
a simple exam-friendly way.

1. PERT vs CPM
Both are project control techniques used for planning, scheduling, and completing projects on
time.

PERT (Program Evaluation Review Technique)

• Used when project time is uncertain
• Suitable for research, innovation, new product development
• Focuses on time

Example:
Launching a new mobile app where exact completion time is unknown.

CPM (Critical Path Method)

• Used when activity time is known/fixed
• Suitable for construction, manufacturing
• Focuses on time + cost

Example:
Building a house with fixed steps and durations.

Difference:
PERT CPM
Uncertain time Fixed time
Time focused Time & cost focused
Research projects Construction projects

2. Balanced Scorecard
It measures performance from 4 perspectives, not only profit.
Main Areas:

Financial
Profit, revenue, return on investment.

Customer
Customer satisfaction, loyalty, complaints.

Internal Process
Efficiency, production quality, delivery speed.

Learning & Growth

Employee skills, innovation, training.

Purpose:
Helps company connect vision and strategy with daily performance.

Example:
A company may earn profit but lose customers. Balanced Scorecard shows both sides.

3. EVA (Economic Value Added)

Measures whether company creates real wealth after deducting capital cost.
EVA = NOPAT - (Capital \times Cost\ of\ Capital)
• Positive EVA = company creates value
• Negative EVA = company destroys value

Example:
Profit = ₹10 lakh, capital cost = ₹7 lakh
EVA = ₹3 lakh

4. MIS (Management Information System)

A computerized system that gives managers useful data for decisions.

Dashboard image shows:

• Revenue
 • Inventory
• Profit
• Employee performance
• Downtime

Benefits:
• Quick decisions
• Better planning
• Real-time control

Example:
Manager checks daily sales dashboard.

5. Business Intelligence / Modern MIS Tools

Last image shows evolution of BI software like:
• SAP
• Tableau
• Power BI
• Qlik
• Looker
These tools convert raw data into:
• Reports
• Charts
• Trends
• Forecasts

Example:
Sales report by region in Power BI.

Short Notes for Exam

Modern Techniques of Control:
1. MIS – Information for decision making
 2. Management Audit – Review management performance
3. Responsibility Accounting – Department-wise accountability
4. PERT/CPM – Project control
5. Balanced Scorecard – Multi-area performance measurement
6. Ratio Analysis – Financial health check
7. EVA – Real value creation

Easy Memory Trick

MARPBRE
• M = MIS
• A = Audit
• R = Responsibility Accounting
• P = PERT/CPM
• B = Balanced Scorecard
• R = Ratio Analysis
• E = EVA

Most Important 2-Mark Answer

PERT and CPM are project planning and control techniques. PERT is used when time is
uncertain, while CPM is used when time and cost are fixed and measurable.

If you’d like, I can also make a single beautiful comparison chart of all modern control
techniques for last-minute revision.
These images explain Decision Making Process and Organisational Buying Behaviour. I’ll
explain each in simple exam language.

PART A: Decision Making Process

Decision making means choosing the best option among alternatives to solve a problem.
Steps in Decision Making Process
1. Identify the Problem
Recognize what issue needs solution.
Example: Sales are falling.

2. Collect Information
Gather facts, causes, data, opinions.
Example: Check customer feedback, competitor prices.

3. Identify Alternatives
List all possible solutions.
Example: Reduce price, improve quality, advertise more.

4. Weigh the Evidence

Compare pros and cons of each option.
Example: Lower price may increase sales but reduce profit.

5. Choose from Alternatives

Select the best solution.
Example: Start digital marketing campaign.

6. Implement the Action

Put decision into practice.
Example: Launch ads on social media.

7. Evaluate Results
Check whether decision solved problem.
Example: Did sales increase after ads?
Short Definition
Decision making is the process of selecting the best course of action from available
alternatives.

PART B: Organisational Buying Behaviour

It means the process by which companies or institutions buy goods/services for production, resale,
or operations.

Example:
Hyundai buying steel, a hospital buying medical equipment, college buying computers.

Participants in Organisational Buying

Behaviour (Buying Center)
1. Users
People who use the product.
Example: Employees using computers.

2. Influencers
People who influence specifications or suggestions.
Example: IT team recommending laptop brand.

3. Deciders
People who take final decision.
Example: CEO / Purchase head.

4. Approvers
People who approve the purchase.
Example: Finance manager.
5. Buyers
People who place order and negotiate.
Example: Purchase department.

Characteristics of Organisational Buying

1. Larger Volume Purchases
Companies buy in bulk.

2. Derived Demand
Demand depends on consumer demand.
Example: More car sales → More tyre demand.

3. More Emphasis on Specifications & Service

Quality, standards, after-sales support matter.

4. Professional Buyers & Negotiation

Trained purchasing staff negotiate price.

5. Repeat Business
Regular long-term supplier relationships.

6. Multiple Buyers
Many people involved in one purchase.

Organisational Buying Process

1. Need Recognition
Company realizes need.
Example: Need new machines.
2. Need Description
Define what is required.
Example: Need 10 high-speed printers.

3. Product Specification
Technical details prepared.
Example: Speed, quality, brand standards.

4. Supplier Search
Find possible suppliers.
Example: HP, Canon, Epson.

5. Proposal Solicitation
Invite quotations/tenders.

6. Supplier Selection
Choose best supplier based on:
• Price
• Quality
• Delivery
• Reputation
• Credit terms
• Transport cost
(Like Hyundai selecting Tata Steel/Jindal Steel)

7. Order Routine Specification

Finalize quantity, payment, delivery, warranty.
8. Performance Review
Check supplier performance.
Example: Was delivery on time?

Easy Memory Trick

Buying Participants:
UIDAB
Users, Influencers, Deciders, Approvers, Buyers

Buying Process:
NNPSSOPP
Need, Need description, Product spec, Supplier search, Solicitation, Supplier selection, Order
routine, Performance review

5-Mark Exam Answer

Organisational buying behaviour refers to the decision-making process by which
organizations establish need for products and identify, evaluate, and choose among alternative
brands and suppliers.

Real-Life Example
A college wants 100 laptops:
• Users = Students/labs
• Influencers = IT department
• Deciders = Principal
• Approver = Finance office
• Buyer = Purchase department

If you'd like, I can also make a consumer buying behaviour vs organisational buying behaviour
comparison chart (important exam question).
This image explains a Supplier Selection Case where Hyundai has to choose between Tata Steel
and Jindal Steel as suppliers. It shows how organizations make buying decisions using many
criteria—not just price.

Case Meaning
Hyundai needs steel for car manufacturing.
Now Hyundai must decide:
Which supplier is better?
• Tata Steel
• Jindal Steel
So the purchase team compares both companies using business factors.

Factors Written in Image Explained

1. Price
Hyundai checks which company gives lower and stable rates.

Example:
If Tata gives ₹58,000/ton and Jindal gives ₹57,500/ton, Jindal may look better.
But price alone is not enough.

2. Quality
Image mentions:
• ISO 9001
• ISO 14000
• Deming Award

Meaning:

ISO 9001
Quality management standard.
Shows company maintains consistent quality.
ISO 14000
Environmental management standard.
Shows eco-friendly processes.

Deming Award
Prestigious award for quality excellence.

Meaning for Hyundai:

Better quality steel = safer cars + fewer defects.

3. Credit Terms
Hyundai checks payment flexibility.

Example:
• Pay in 30 days
• Pay in 60 days
• Bulk order discounts
Good credit terms improve Hyundai cash flow.

4. Company Background
Image says:
• MSME
• SME
• Listed
• Sensex 30
• MNC

Meaning:
Hyundai checks supplier reputation, size, stability.

Example:
A listed large company may be more trustworthy than a small unknown firm.
5. JIT (Just In Time)
Image says:
Inventory carrying cost like insurance, activity-based cost.

Meaning:
Hyundai wants steel delivered exactly when needed.

Benefits:
• Less warehouse storage
• Less insurance cost
• Lower inventory cost

Example:
Instead of storing steel for 3 months, daily deliveries come to plant.

6. Awards Won
Image mentions:
Sundaram Fasteners – Deming Award
Meaning companies with awards are seen as reliable and high quality.
Hyundai may prefer award-winning suppliers.

7. Problems Faced by Supplier / Brand Image

Image mentions:
Employee strike for wage hike… in ITC

Meaning:
Hyundai checks whether supplier has:
• Labour strikes
• Legal issues
• Bad public image
• Production shutdowns
Because this can delay steel supply.
8. Transport Cost
Steel is heavy. Logistics cost matters a lot.

Example:
Supplier nearer to Hyundai plant = lower transport cost.
If plant is in Chennai, southern supplier may help.

9. Interstate Travel / Toll / Delay

Image says:
Karnataka–TN border issue etc.

Meaning:
Hyundai checks route risks:
• State border delays
• Toll taxes
• Truck movement restrictions
• Traffic congestion
Late steel = car production stops.

10. Fixed Price for Next 6 Months

Image says: Not really

Meaning:
Hyundai may want price lock for six months to avoid steel price fluctuations.
If supplier refuses fixed pricing, risk increases.

11. Clout / Friendship

Image says:
with decision maker / meetings at club / starts at 5 pm

Meaning:
In reality, relationships and networking may influence business decisions.
But ethically, decision should be based on merit.
Final Decision Logic for Hyundai
Hyundai should not choose only cheapest supplier.
Best supplier =
Right Price + High Quality + Reliable Delivery + Strong Reputation + Low Logistics Cost

Example Decision
If Tata Steel offers:
• Higher quality
• Better reputation
• Stable supply
• JIT support
Then Hyundai may choose Tata even if price is slightly higher.
If Jindal offers:
• Lower price
• Good quality
• Faster delivery
Then Hyundai may split orders or choose Jindal.

Management Concept
This case shows Organisational Buying Behaviour where multiple criteria are used in supplier
selection.

Exam Answer (Short)

Hyundai compares Tata Steel and Jindal Steel based on price, quality, certifications, credit terms,
logistics, delivery reliability, reputation, and long-term cost before selecting supplier.
Hidden Lesson
Cheap supplier can become expensive if delays or poor quality stop production.

If you'd like, I can also explain this case in MBA-style winning framework (how to present in
viva/GD/case study round).