We propose a method for setting up PI and PID controllers based on stable FOPDT process model. where dead-time dynamics is manipulated without approximation. The main idea used is a partial compensation of the system dynamics, which makes possible obtaining simple tuning rules. Remaining unknown controller parameters are determined on the basis of the modulus optimum and the minimum ISE criterions. Besides the performance indices, quality of the settings is also evaluated by the stability margin. Although optimal values of the parameters are valid for the reference tracking problem, a compensation of the disturbance lag that preserves the stability margin is proposed for the disturbance rejection problem. (C) 2009 Elsevier Ltd. All rights reserved.