Finite capacity queueing system with correlated arrival and service processes is considered with provision for additional server along with controllable arrival rate. The additional service channel is introduced according to (r1, R1) control policy. In this policy if the system size reaches R1 additional server is introduced and the introduced server is withdrawn if the system size becomes less than r1 (< R1). In a similar manner the arrival rate is controlled according to (r2, R2) policy, where r1 < R1 < r2 < R2. The steady state probabilities and the performance measures are derived. Numerical results are presented.