Traditional non Budgetary Control Tools
(a) Statistical Data
Statistical analysis and presentation of statistical data are important control tools. These include charts, tables and reports. Statistical reports for instance show trends so that a view is able to extrapolate the movement of the firms performance.
(b) Special reports and analyses
These are mainly used for particular problem areas. They are not routine and can help review unusual areas that may need significant improvements.
(c) Break-even point analyses
The break—even chart shows the relationship between sales and expenses in such a way as to show at what point volume revenues cover expenses. i.e. point at which total cost = total revenue. From this point a manager can tell the effects of additional cost or sales on profits.
(d) Personal Observation
Managers should not overlook the importance of control through personal observation. Managers have the task of seeing that people accomplish enterprise objectives and tasks. The problem of control still remains one of measuring the activities of human beings and an experienced manager can gather a lot of information from personal observation.
(e) The Gantt Chart
This is a graph on which projected and completed phases of production are plotted in relation to specific increments of time.
The Gantt chart allows the manager to monitor use of the resources at a glance. As a control device it allows the manager to compare both projected and completed phases of production in relation to one another and in relation to time and therefore be able to evaluate overall progress.It facilitates the assignment of control as managers can plot progress, take care of any problems before a crisis develops. The chart is however quite time consuming.
(f) Network analysis
Here the whole of a project is broken down into specific parts so that the nature, proportion function and relationship of each part can be evaluated in relation to other parts and in relation to time. Network analysis is used for extremely complex projects.