“managing is like holding a dove in your hand. Squeeze too hard & you kill it, not hard enough and it flies”-Tommy Lasorda, Major League Basketball

Expense Budget control› When actual expenses exceed budgeted

amounts, the difference signals the managers to identify possible problems and take corrective actions.

Revenue Budget control› Managers formulate action plans to correct the

budget variance when the budget goes below the budgeted amount or when the revenue goes above the budget.

Cash Budget control

› Example: If the cash budget shows a payroll expenditure of Rs. 20 L coming at the end of

the week but only Rs.10 L in the bank, the

organization must borrow cash to meet the payroll, and in contrast if the company has

more cash than necessary, the company

can arrange to invest the access to earn

interest income.

Capital Budget control

› Monitoring the amount of capital

expenditures and whether the assumptions made about the return on the investments

are true.

Control Panel› The New era of Management - Richard L. Daft

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› Group 2 GLC HR