Which of the following is a modern technique of Controlling?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → PERT and CPM
Option (1) Personal Observation — Incorrect. It is a traditional technique. The manager watches the work himself.
Option (2) Statistical Reports — Incorrect. It is a traditional technique. Facts and figures are presented as averages, ratios and so on.
Option (3) PERT and CPM — Correct. PERT (Programme Evaluation and Review Technique) and CPM (Critical Path Method) are modern techniques, along with return on investment, ratio analysis, responsibility accounting, management audit and management information system.
Option (4) Breakeven Analysis — Incorrect. It is a traditional technique.
NCERT (2026-27 Edition): “Summary … Personal observation, statistical reports, breakeven analysis and budgetary control are traditional techniques of managerial control. Return on investment, ratio analysis, responsibility accounting, management audit, PERT and CPM and Management Information System are modern techniques of managerial control.” |