Flashcards in Chapter 8- Controlling Deck (24):
What is found out in controlling?
Controlling finds out the deviation of the actual performance with the standards and attempts to take corrective measures.
How does controlling help in the management process?
It helps in formulating the future paln.
How is controlling important for a company?
It helps to accomplish the goals. Helps in verifying if standards are proper or not.makes efficient use of resources. Motivates employees to achieve standard as they are given well in advance. Maintains order and discipline. Also helps in coordination, cause if the plan is coordinated then action among departments will be coordinated.
What is controlling?
It's the process of ensuring that the actual performance is as per the pre planned standards.
How does controlling maintain order and discipline?
It creates an atmosphere of order and discipline and helps in finding out dishonest behavior from the employees by keeping a close check on them.
How does controlling ensure efficient use of resources?
All activities are done in accordance with the pre planned standards and norms. And in the plan resource are set to used very efficiently.
What are the limitations of Controlling?
Difficulty in setting standards. The company can't really control external factors. Close monitoring could cause resistance from employees. Setting up the controlling system can be expensive.
What are some of the features of Controlling?
It is goal oriented, pervasive and continues. And it brings the management cycle back to planning.
How is setting standards a limitation for controlling
It's very difficult to set standards if the standards are not defined quantitatively.
Qualitative standards are very hard to fix.
Why are Planning and Controlling interdependent?
Planning is useless without control. And controlling is blind (doesn't have the standards) without planning.
Planning is a prerequisite for controlling.
What are the differences between planning and controlling?
Planning is an intellectual process which need creative imagination.
Controlling seeks to compel events to be just like the plan and checks whether things are going according to plan.
How is controlling both forward and backward looking?
Controlling is done to improve future plans.
Controlling looks at past performance to see the deviation with the planned standards.
How is Planning both forward looking and backward looking?
Planning is setting in advance what has to be done.
Planning is guided by past experiences and results
What are different steps in controlling?
Setting standards. Measuring actual performance. Comparing actual and planned standards. Analyzing change. Taking corrective measures.
Explain 'Setting Performance Standards.'
It's all about setting benchmarks for the performance. Standards can be set in both qualitative and quantitative measures.
Quantitative measures are easier to analyze.
Explain 'Measurement of Actual Performance.'
It just means quantifying actual performance, quality, efficiency and other things in a company using different ways such as performance reports,personal observation etc.
How should comparison be done between actual performance and planned performance?
Comparisons show the deviation so it both actual and planned performance should be in the same quantitative terms.
When analyzing deviations what is to be found?
Once deviations are found their source or cause has to be found.
What is Critical Point Control?
It's a concept that says a company should only focus on the deviations on the the key result areas.
The firm cannot afford to try a fix all deviations.
What is Management by exception?
It's a concept that says, only deviations that not acceptable should be worried about and brought to the notice of the managers. A little deviation is always acceptable.
What belief is Management by exception based on?
Trying to control everything leads to controlling nothing.
When should a corrective action be taken?
Only when deviation is not acceptable. No corrective measures have to taken when deviations are acceptable i,e very small.
Give some examples of corrective measures?
Training Employees, Assigning additional workforce reducing cost, using less/more input etc.